Business & Merchant
- Last Updated on Friday, 26 August 2016 16:01
By Roger F. Dolanch - Broker/Owner
Whether you are a first-time home buyer or not, the decision to buy a home is both exciting and frightening. After all, when you enter into an Agreement of Sale, the home you’ve chosen will be your home for the next several years.
Not only should you feel emotionally satisfied by your choice, but you should also feel financially comfortable. You want to buy a home that you can afford, hold its value, or even increase in value over the years.
While no one can know for sure what will happen to housing values, if you make the choice to buy a home that meets your needs and priorities you’ll be happy to live in it for years to come.
Neighborhood or Home Amenities?
For some home buyers, living in a particular neighborhood takes precedence over all other priorities. For other people, the home itself matters more. Ideally, you’ll find the “right” home for your household in the neighborhood you love at a price that’s within your budget. The reality is that practically everyone makes some compromises when buying a home, even including new construction.
It is a good idea to include all members of the household in the creation of a “wish list” of what features are wanted in a home. After that discussion, review the list with everyone and rank them in terms of priorities. The most important decision will often revolve around whether the house or the community matters more. Is it worth it to make a longer commute in order to live in a home with a larger lot?
Know When to Compromise
Once you’ve determined whether the location or the house itself matters most, you will more than likely compromise on some of you the amenities on your list. If the location is the most important factor for your home choice but you find that homes are priced above your budget, You can compromise in several ways:
• Look for a different home type within the community you want, such as a smaller single-family home, a town home or condominium. Decide if you can live with one less bedroom or any other features on your list.
• Consult with a lender or a financial planner to discuss your options for possibly increasing your budget without placing too much stress on the household budget. While no one should overspend on a home, you should recognize that going $10,000 above your price range when you’re financing your purchase with a 30-year fixed-rate loan will actually add only less than $30 to your monthly payment (depending on your interest rate).
• Lower your expectations about the condition of the home. Everyone needs to understand that there is no such thing as an absolutely “perfect” house. While everyone prefers a move-in ready home, you can often get a better deal on a home that needs some repairs or cosmetic upgrades. Be cautious though, and make your offer contingent upon a home inspection to evaluate the condition of the home to see that, all things considered, it is realistic and do-able. Keep in mind that moving walls and adding a bathroom are costly renovations, while painting and replacing appliances are more reasonable.
Your CENTURY 21 Frontier Realty professional can help you determine when and how to compromise and will take the time to show you a variety of alternatives so you can make an informed decision about when to make the move on the “right” house for you and your family.
