Conducting Your New Home Search

Let’s take a look at the role identifying needs vs wants and your potential budget play in your home search before we address the value of online search options. You may want to start by creating a “Home Buying Mission Statement”, so that you’re able to focus your search on homes within your means.

Define Needs vs. Wants

Lifestyle and financial goals often determine the ideal style, size, and desired location of a new home. But what’s ideal and what you actually need are usually different. So, before you start house hunting, separate your needs from your wants.

Needs are… well, necessary — and they’re usually tied to why you’re considering buying a new home. These are the factors that meet the requirements of the household. For instance, you may need a specific number of bedrooms for a growing family. Or an office space with a door to comply with privacy requirements for a job that allows for remote work.

Wants are typically more luxury-related features and may include upgrades or amenities that can be added to a home during a remodel. Wants could include a swimming pool, hardwood flooring, outdoor living space, additional bathrooms, etc. These desires are typically not deal breakers. Many buyers will compromise on their wants as long as the items on their needs lists are met.

Set a Budget

While home price and monthly payment are essential factors in determining affordability, other costs must be considered. Borrowers must figure down payment requirements, closing costs, and moving expenses. Buyers transitioning from renting to owning should also budget for home repairs and routine maintenance, since there’s no longer a landlord to call for free assistance. And don’t forget to add homeowner’s insurance premiums to your budget.

Get Started Online

A virtual search for your new home can save you time by helping quickly identify properties that meet your needs and fall within your budget. Some real estate websites allow you to save search parameters and receive email or text alerts when matching homes come on the market. But remember — getting started online allows you to learn about potential properties, but it doesn’t tell the whole story.

A knowledgeable real estate agent and a willingness to visit the area in person can help you gain a clear picture of a home’s pros and cons. The agent may know about new construction scheduled near the home that might make it less desirable. Or the planned construction of a nearby outlet mall might make it more appealing than you imagined.

Avoid searching online for your dream home before you’ve identified your needs and budget. It’s easy to fall in love with photos of perfectly staged homes, and an “I’ll know it when I see it” mentality could lead to buying a home that’s aesthetically appealing but is a practical and financial mismatch. Establishing a home buying mission statement is one way to prevent this from happening!

It seems like a good place to mention that housing markets can change rapidly and often reflect changes in the greater economy. In a “seller’s market”, it may take some time and patience to find the right home for you. But when the time comes, when you find that house that fits your needs and budgets, you’ll definitely want to know what it takes to make an offer that gets accepted. Click here to check out our follow-up post on that topic.

Lay out your welcome mat in less time and for less money when you shop smart. Use Call Federal’s Ask Us Anything feature to speak with a dedicated mortgage consultant who can answer questions about the home loan process.