Allan C. Brown Realtor®

 

 

 

 

 

 

 

 

 

 

Buying for Your Needs

One of the most common, and potentially expensive mistakes made by homebuyers is misconstruing their needs when buying a home. This can be an over- or under-estimation either of which can quickly become a drag on their home ownership experience.

A Real Estate purchase is not like buying a shirt where the wrong size or style can easily be returned for the right one. Property transactions are usually long and somewhat involved and always carry a cost to the seller. If you purchase the wrong house--one that does not fit with your basic needs--and want or need to sell it in a short amount of time, you'll lose money even if you sell at (or even a bit above) the original purchase price. So, getting the right "fit" for your needs is extremely important.

Analyzing Your Needs

There are many articles devoted to the comparison of needs and wants, but suffice it to say that just because you WANT certain features in a home does not mean that you NEED them. There is a fairly distinct line between a need and a want that frequently becomes blurred when a buyer assesses what they desire in a home. Too often buyers insist that they "need" something--whether it is size or style or amenity--when in reality they only "want" or would like to have it. Missing the distinction can get very expensive since money is often poured into "wants"-- sometimes even at the expense of needs.

In general, a need is a necessity. For example, if you have two children you'll need a minimum of two-three bedrooms. If you do not drive, you will need a home that has access to public transportation. If you are physically challenged, you'll need a home with specific adaptability.

A want, in contrast, is something completely different. It is not a necessity, but rather, a desire. Examples would be homes considerably larger than family size would normally require or amenities such as jacuzzis, built-in entertainment centers, vaulted ceilings or stainless steel appliances. No matter how much the desire is, a want will never become a need, no matter how often buyers describe them as such.

Typical Needs: Size

The size of the home is probably the very first need you will want to focus on. Not only must the home be large enough to accommodate you or your family, future needs should also be factored in, depending on how long you intend to live in the home. If you plan to stay in the house, for example, for ten years, and know that your family size will be increasing (or decreasing as older children move out) that should be taken into consideration. Making a move before you are ready will almost always be an expensive proposition.

It can be just as expensive (or more so) to buy more house than you'll need. Not only will you need to deal with higher initial costs and higher mortgage payments, you will confront higher repair and maintenance costs on space you simply do not need.

Typical Needs: Location

When assessing your needs, another important consideration should be the location of the home. In the long run, proximity to employment, schools and shopping will often take precedence over the choice of the latest trendy (but less convenient) neighborhood. The long commutes (especially since they detract from time spent at home) will often turn out to be a bad trade-off for moving to the currently popular subdivision. Before you follow the herd to the latest area, make sure that it makes sense for your lifestyle.

Typical Needs: Amenities

Depending on your personal situation, some amenities may be necessities, others more optional. For example, your work may require that you store tools and equipment at home, making a garage an important consideration. Or, you may have a home-based business where an office in the home is required. Those who have a child care business may need specific areas that can be devoted to that business.

Mistaking Wants for Needs: Possible Consequences

We've seen a number of buyers confuse their "wish list" (which are almost always WANTS) with what they truly need in a home. We've watched buyers pursue a litany of these wants--wood floors, stainless steel appliances, lofts, etc. only to purchase a home that is completely wrong for them--too small, in the wrong location or too large--and need to move before they wanted to. The concentration on what was wanted while overlooking what was needed usually resulted in an unsatisfactory home ownership experience. Plus, due to the expense of all these extra items, the cost took a bigger bite out of their monthly budget--for a home that made them less than happy.

Summing Up

If necessary, you can live without a WANT, but it is very difficult to live (and be happy in your home) without a NEED. Save yourself some aggravation (and most likely some money) by spending a little time analyzing exactly what is important.

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