Finding your first home is an emotional experience. Owning a home has long been a mark of success and comfort—a space to make truly your own. It’s no wonder home buyers fall so in love with the idea of owning a home that sometimes they overlook important areas that will impact their bottom line.
Buying a home is, after all, an investment, too. Make sure you consider your purchase with a clear head before signing on the dotted line.
1. Home Buyers Don’t Remove the Rose-Colored Glasses
When purchasing stocks and bonds, it is rare for someone to fall in love with their portfolios. It’s an investment, right? The only important thing is the rate of return on your money.
When people look for their first home, they often romanticize it. They look for their “dream” home through rose-colored glasses. Oh sure, there’s some structural damage, but the kitchen has everything you always wanted. The price busts your budget, but the library alcove is heavenly!
Although this house will become your family home, you must treat it as you would any investment. Take the emotion out of the equation. Don’t ignore those, “Sure, there’s a problem, but … “, ideas.
They may not be dealbreakers, but you might be better off if you can muster the strength to walk away.
2. Home Buyers Lose Control
There may be a number of well-intentioned people working with you to purchase your first home. Real estate agents, mortgage brokers, parents and friends will all have advice. It can be confusing, especially if you are a first-time home buyer.
Each person advising you has their own point of view and experience. Remember your parents’ real estate needs aren’t the same as yours. A fast-changing housing market could put your accountant’s advice in the dustbin. The mortgage broker might be biased.
Weigh all their advice accordingly. Just don’t let it stop you from making the decisions you know are correct for you and your family as home buyers.
3. Home Buyers Aren’t Decisive
You will need to make a lot of decisions throughout the home-buying process. If you’re uncertain about major parts of home purchasing to begin with, don’t go down this path any further.
Make sure you can afford the mortgage payments over the long term. Make sure you can live in an area for years—selling a home isn’t always easy, and you’ll maximize your investment return if you can stay a while.
When you are sure you’re ready, make a list of all the things that are important to you:
- Do you need to move by a certain date?
- Desire a certain school district?
- Have space requirements?
Also, make sure you’ve got a reasonable sense of what you must have, and what you can—if pushed—live without. Kitchen island with a built-in second sink, we’re looking at you.
Once you know what you absolutely need in a home, don’t budge from that list. It might be tempting to waver if you find a home that meets other needs. The best thing is to tell your REALTOR® to only show you homes that meet your basic needs. Stick with what you know you need.
For instance, if you know you can only afford a home which is $150,000 or less, don’t ever step foot in a home listed at $175,000. And if you know you need at least two bathrooms, don’t view a home with only one.
If you are decisive, you’ll save a lot of time. And in the end you’ll wind up with a house that you can call a home—and a good investment—for the long term.
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