First Time Home Buying 101: Wants vs. Needs

Buying real estate always involves compromise. If you were to purchase land and build a house out would still find that there are compromises. Chances are you think you know exactly what you want; Unfortunately, that is probably not how it works. All family members have their wants and needs and may not always agree on what is important. The trick is to get as close as possible to make every one's wishes happen within the constraints of your budget and location.

Make a list of what you WANT in your new home. Make a list, of what you NEED in your new home; i.e, you have to have a certain number of bedrooms. Then list what you consider an absolute DEAL BREAKER , you just will not live with or without. Have everyone in the family contribute. Some items on that list will change in priority after you begin looking at properties. Sometimes, what you think is really important may be an easy compromise when you see a property and you just know "it is the one".

The list is really for your family, but can really help your real estate agent rule "in" or "out" properties to see. A good agent will appreciate knowing those things about you. He/she will spend a lot of time researching properties that will include your priorities within your budget. Your agent may show you homes that might be a "spectacular deal" for you, something they anticipate you'll like, or simply show a property for comparison. But, you don't want to have a real estate agent just chase around and show you everything. Looking at homes sounds like fun, but it can get really time consuming and exhausting! (Take your thermos of coffee and a supply of energy snacks.)

Examples: (You most likely found things that really interested you on Internet searches)

WANTS:

1. Location - close to shopping
2. Specific school district
3. Style of house
4. Age of home
5. Basement
6. Type of heat (gas, electric, etc.)
7. Energy efficient windows
8. Garage
9. Fenced
10. barn
11. View

NEEDS:

1. Location - commute to work
2. # Bedrooms and/or in-law unit
3. # baths
4. Large kitchen
5. Acreage
6. Established landscape

DEAL BREAKERS:

1. Location too far for a reasonable commute
2. Noisy neighborhood, heavy traffic, barking dogs, etc.
3. Property needs major repairs, poorly maintained.

"Fixer-uppers" are great bargains for some people. You must have time and enjoy doing it. Some people really enjoy this type of work, but know what it is going to cost you - not just in money! I'll write more about renovations and repairs later, but keep in mind that most houses don't get "updated" until it is time to put them on the market. Paint is simple and cheap, but many other things just become "projects" that don't get done. Know your own reality!