“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world” – Franklin D. Roosevalt
Buying a house will be one of your biggest investments but an even greater investment will be making that house a “home” for you and your family. Down below is a list of 4 essential priorities to have when house shopping. It’s my hope that this list helps you and your family during your house shopping experience.
Top 4 Priorities
1. Location
Probably the most universal real estate quote. “Location, Location, Location” Location can mean several things for us, it could mean a 5-minute drive to work or it could mean a 20-minute drive but having the luxury of living in your favorite neighborhood. It could also be the difference between being able to walk to the nearest beach or being within walking distance to the downtown shopping centers and restaurants. Perhaps you prefer living in the suburbs away from the smog and the traffic, where you can then enjoy having your beautiful sized backyard for those outdoor barbeques, and space for the kids to play. In summary, location can mean it all. It’ll determine your child’s school district, the community you live in, the safety of your neighborhood, and the activities you’re surrounded by. So whether you choose to live in the city or to live in the suburbs always make sure it works best for your family’s needs.
2. Financing/Pre-Approval
I think it’s safe to say we’ve all had our fair share and enjoyment browsing through those luxury listings that although are extremely beautiful tend to be completely out of budget… The truth is whether you’re taking out a loan or you’re making an all-cash offer knowing your budget is of true importance. Why? Because your budget will determine many factors such as your mortgage payment, your style of living, how big a down payment you’ll be making. So as we can see pricing plays a huge role in your decision making, it will completely determine which home’s you’ll be looking at from here on down to when you write your first offer. Now how do we determine what your budget is? That’s where the pre-approval process comes in determining how much “house” you’re able to afford based on your income, credit score, and financial history. Knowing your budget now allows your realtor to find a home that fits your dream without breaking your wallet.
3. Down Payment
For most saving for a down payment is a difficult endeavor but preparing to make a down payment is of great importance. Let’s consider what makes it so important and how you can go about it. First and foremost a down payment proves to yourself and to the banks that you’re financially ready and responsible enough to buy a home. Making a down payment also demonstrates your interest and how invested you are in the property. In essence, you’re putting “skin in the game” thus allowing the banks to honor such a loan for you to purchase your home.
4.Evaluating Needs Vs. Wants
We must first know the difference between a need and a want. Our needs are essential and for that reason, they’re superior to our wants. We may “want” a 5 bed 3.5 bath home with a huge pool in the backyard, but what we actually “need” is a 3 bed 2.5 bath home with an office space. It’s important to look at what truly matters shelter, safety, basic requirements such as bedrooms/baths, running water, and heating. Truth is that each and every one of us has different needs and wants so let’s find out how to comb through the two.
Step1: Create a checklist of everything you’re looking for in a home. Have everyone in the family participate and create their own personal list.
Step 2: Compare everyone’s list and look for the important similarities such as neighborhoods, commute, school systems, etc. then match those similarities onto a new list thus helping you narrow down your search requirements of what’s most important
Step 3: Lastly, once you have your prioritized list, consider taking it with you each time you tour a home that way you can remember your family’s exact needs and wants.
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