Prioritizing Your Wants and Needs as a Homebuyer in Todays 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.

Danielle Hale, Chief Economist at realtor.com, 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 only good to have. Making a list of desired qualities for your home search is the easiest 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 great way to think about them before you begin:

• Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
• Nice-To-Haves – These are features that you’d love to have but can live without. Nice-To-Haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender (examples: a second home office, a garage, etc.).
• Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (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.

Bottom Line

Putting together your list of necessary features for your next home might seem like a small task, but it’s a crucial first step on your homebuying journey today. If you’re ready to find a home that fits your needs, let’s connect.