Whether you’re a first-time buyer or a seasoned homeowner, shopping for a new home can feel daunting. In fact, 56% of buyers find that “finding the right property” is the most challenging part of the process. Buying a home is a significant commitment of both time and money, with the potential to enhance your current quality of life and future financial security.
Follow these five steps—and complete the corresponding worksheet offered below—to assess your priorities, streamline your search, and choose your next home with confidence.
STEP 1: SET YOUR GOALS AND PRIORITIES
Determine why you want to move. Are you seeking more space, better schools, less maintenance, or an opportunity to build equity instead of renting? Identifying your reasons will help prioritize your home search. Consider future changes, such as job transitions, growing your family, or getting a pet. Choose a home that will meet your needs for at least the next five to seven years.
STEP 2: DETERMINE YOUR BUDGET
Financial experts recommend the “28/36 Rule”: spend no more than 28% of your gross monthly income on housing expenses (mortgage, taxes, insurance) and a maximum of 36% on total debt obligations (including housing expenses and other debts). Get pre-qualified or pre-approved for a mortgage to understand your borrowing capacity and combine it with your down payment to determine your maximum purchasing potential.
STEP 3: CHOOSE A LOCATION
The location is as important as the home itself. Decide on a rural, urban, or suburban setting, your preferred commute length, and school district. A good neighborhood can increase your home’s future resale value. Look for areas with high homeownership rates, low crime rates, good schools, and access to desired amenities.
STEP 4: DECIDE ON ESSENTIAL FEATURES
List your ideal number of bedrooms, bathrooms, and preferred layout. Understand you might need to compromise on some features. Prioritize your needs and wants, and remember your initial goals to guide your decisions if you face tough choices.
STEP 5: MEET WITH A REAL ESTATE AGENT
A real estate agent can alleviate stress and uncertainty in the home buying process. From goal setting to loan securing to neighborhood selection, an agent will guide you every step of the way. Agents have access to extensive listings, market data, and can set up custom searches for new listings. Best of all, their services come at no cost to you, as the seller pays the buyer agent’s fee at closing.
Contact us today to schedule a free consultation, whether you plan to buy soon or in the future. We’re here to help you prepare and succeed in your home purchase journey.
The above is for informational purposes only and not intended as financial advice. Consult a financial professional for individual needs.
Sources:
1. NAR 2019 Home Buyers & Sellers Generational Trends Report –
https://www.nar.realtor/sites/default/files/documents/2019-home-buyers-and-sellers-generational-trends-report-08-16-2019.pdf
2. Architectural Digest –
https://www.architecturaldigest.com/story/this-is-how-long-you-should-live-in-your-house-before-selling-it
3. Investopedia –
https://www.investopedia.com/terms/t/twenty-eight-thirty-six-rule.asp
Money Talks News –
https://www.moneytalksnews.com/20-clues-youre-buying-home-the-right-neighborhood/
