Know the Difference Between Wants and Needs When Buying a Home

Know the Difference Between Wants and Needs When Buying a Home

You’ve likely thought about the pros and cons of spaces, towns, and prices when purchasing a home. This is a big commitment for anyone, especially first-time homebuyers. You will need at least 20% of the price of the home for the down payment in most cases and will need to take out a loan that could last 15-30 years. Long story short, you will need to be confident in your purchase before moving forward!

In this article, we will explore the differences between wants and needs when it comes to touring and purchasing new real estate in today’s market.

Think About Your 5, 10, and 15-Year Goals 

First and foremost, you’ll need to think about your long-term goals for your life and finances. If you are purchasing a home with a roommate or partner, having established benchmarks is an important step to solidify prior to starting your home search.

Will you want to live in a city in 10, 15, or 20 years? Is a 2 bed, 2 bath space enough for someone who is contemplating having children within 5 years? These are the kinds of questions you will want to think about prior to starting your home search and working with a real estate agent.

Savings are another key component of long-term planning. Review your finances and establish savings goals so that you will be able to do things such as go on vacation, retire, renovate, or invest.

Know What You Can Update and What You Can’t

Once you start your home search journey, do your research and understand what you can renovate and what you can’t. Some areas of a home can be easily redone without professional help, others require assistance, and some projects require a rebuilding aspect. 

Keep in mind the cost of renovations as well. Investing in a cheaper home gift costs you more down the line in renovations, fixes, and improvements. 

Know Your Familial Goals

piece of the puzzle when starting your home searching journey is understanding your familial goals. Are you planning on having children, allowing relatives to move in, or taking in foster children or pets? This could mean you will need a bigger space down the line, which can mean you should adjust you search now to get ahead of these inevitable changes. 

Family planning should also be at the forefront of your decision-making process. A home is not merely a physical structure; it becomes the foundation for your family's growth and well-being. Before making this significant investment, take a moment to envision your future and the potential additions to your family. Consider the size of the house and its capacity to accommodate a growing family comfortably. Will it have enough bedrooms for children or space for a home office if needed? 

You should also make a point to assess the proximity to schools, parks, and other family-friendly amenities that will contribute to your children's upbringing. By incorporating family planning into your house-buying journey, you can ensure a healthy environment for your loved ones, both now and in the years to come.

Keep Property Taxes in Mind

Hidden costs are inevitable when it comes to purchasing real estate. Renovations are one part, but taxes are a completely different beast. It can be hard to estimate climbing tax rates and other economic expenses. Working with a professional to help you budget and save can help you understand how many of the “wants” you’ll be able to invest in.

Considering property taxes upfront can save you from unexpected financial burdens in the long run. These taxes are typically based on the assessed value of the property and vary from one location to another. Before falling head over heels for a particular house, take the time to research and understand the property tax rates in the area. 

Look into historical trends to assess if there have been any significant increases in recent years. High property taxes can significantly impact your monthly expenses and overall affordability and make you reconsider your wants and needs when it comes to your real estate journey.

Location, Location, Location

Last but not least, consider location when deciding between wants and needs. While you may want an extra room in your home, you may need to be closer to a city in order to cut down on your commuting time or offer you the availability to pick up extra shifts. Searching in different states with various tax implications can also help re-define your search!

We hope this article helps you better understand the difference between wants and needs when purchasing a home. These points are just a few you should consider as a potential home buyer. For more one-on-one support from the pros who know best, book a time to meet with VSells & Associates! 

We hope this article helped you better understand potential factors to consider when weighing your home buying options. For more helpful content and support from our real estate pros, contact the VSells & Associates team today!

Work With Us

Whether you are buying or selling, we at VSells & Associates make it our mission to guide our clients through the whole process. We make moving simple, straightforward, and as stress-free as possible.

Follow Us on Instagram