Prioritizing Your Wants and Needs as a Homebuyer in Today’s Market
Mortgage rates are undoubtedly higher now than they were a year ago. And if you're considering purchasing a home, this might be on your mind right now. This is because the cost of borrowing money for your home loan is impacted by these higher rates. You'll need to be methodical when you search for a home this winter so you can discover one that suits your needs and budget.
Realtor.com's Chief Economist, Danielle Hale, explains:
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be given the diminished purchasing power.”
In other words, when looking for a home, it's crucial to consider what features are essential and which are merely nice to have. Making a list of desired features for your home search is the best way to comprehend this.
What came first? Get a mortgage pre-approval. Pre-approval gives you a better idea of how much money you can get for a home loan, and it has a big impact on how you'll make your list. You don't want to fall in love with a house that is out of your price range, after all. You may start making a list of (and prioritizing) all the amenities of a home you want once you have a firm understanding of your budget.
Here's a fantastic method to consider them before you start:
- Must-Haves - The absence of these elements will make a home unsuitable for you and your way of life (for instance, being too far from family or friends, or having too few bedrooms or bathrooms).
- Nice-to-haves - Features that are nice-to-haves but that you could live without are those. However, if you find a house that meets all of your requirements as well as some of these nice-to-haves, it's a candidate (examples: a second home office, a garage, etc.).
- Dream-state - The dream state is when you have the most creative ideas. Again, you won't need any of these amenities, but if you can locate a house within your price range that includes all the necessities, the majority of the luxuries, and any of these, it will be an easy choice (examples: farmhouse sink, multiple walk-in closets, etc.).
After you've made your list and organized it in a way that suits you, talk to your real estate expert about it. They may assist you in furthering the refinement of the list, offer advice on how to best stay to it, and locate a house in your neighborhood that satisfies your requirements.
To sum up
Though it may seem like a simple chore, creating your list of essential characteristics for your next house is an important first step in the home-buying process today. Let's contact if you're prepared to look for a house that meets your requirements.