Determining your housing needs is an essential part of the home purchase process. Being satisfied and content with your home purchase requires you to understand your specific needs when looking for a home.
I do not think that you should settle for less than you want, but the truth is almost everyone searching for a new home has to confront their needs vs wants and make compromises.
Therefore, understanding your needs and wants is very important in finding the right house for you. Not determining your housing needs from the very beginning could lead to frustration, wasted time and money.
In this blog, I will go over things to consider before going out and looking at homes. We will go over needs, wants, and deal-breakers. I will list them in order of importance to me, although the order might be different for you. I hope this list gives you a general order of importance, so you can determine your housing needs and find your next home.
Needs, Wants, and Deal-breaker List
Putting your needs, wants, and deal-breakers on paper should be done before going out and looking at homes. Keep the list close by and evaluate each property you see. Let’s briefly go over the difference between needs, wants, and deal-breakers.
Needs
Needs are things you must have, and the home would not be functional without them. For example, a family of 4 ideally needs a minimum of 3 bedrooms. That is a must. Another example could be a school system or distance from work.
Wants
Wants are things that you would like to have but could do without. Often these things are found on the wish list. An example could be granite countertops or an attached garage.
Deal-breakers
Deal-breakers are deficiencies in the home that would make it challenging for you to use the house. For example, you cannot buy a house with stairs if you are a senior. If you have kids, a poor school district is another deal-breaker. Deal breakers are non-negotiable, and you can remove a home from the list if it has a deal-breaker characteristic.
Key When Evaluating Your Next Home.
Location
Location is by far the most important factor in real estate. In a previous blog, I went over four specifics to location, which you can read more about here.
For this blog, we have to assume you have gone through the location particulars and identified areas of interest. You can choose neighborhoods based on your commute, frequented attractions, or closeness to family and friends.
It is also advisable to consider amenities. Communities with desired amenities can also change the neighborhoods that you choose. If, for instance, you must have a pool, you should select areas that offer a community pool.
I placed location first in importance because it is impossible to change, and ultimately something you will have to live with until you decide to sell. Stay open-minded and take suggestions from your realtor because he may know of excellent pockets of real estate. Make sure you have your needs vs wants list and address each location for those.
Beds/ Baths/ Size/ Style
Once you have determined areas of interest, next you should consider what you need from the home. Think about how many bedrooms, baths, and the size and style you need. Home functionally should be at the very top of this list. Search for a home that fits your needs and those of everyone who will live with you. You can ask yourself the following questions.
- How many bedrooms do I need vs want?
- How many bathrooms do I need vs want?
- How large of a home do I need vs want?
Functionality should be a significant factor when determining your housing needs. If the home does not serve your needs, it is just eye candy. Homes built to serve their owners and be lived in make for happy homeowners.
Other factors that affect home functionality are layout and home design. A good design could improve the feel of your home and also contribute to its functionality. If, for example, you are older and are looking for a forever home, finding a ranch-style home is a need, not a want.
You should also decide whether to buy a condo or an attached/detached home. What is your preference, and what do you need? If a garden is a must, condos and attached homes are often out of the question. In case you do not want to deal with exterior maintenance, snow removal, and lawn care, a condo or townhouse is your best option.
Condition
I put condition third on the list because it is often the easiest to change.
You can add a bathroom or expand the home, although these additions can be expensive. Remember you must hire construction experts to ensure additions add value to your home.
Although it is very convenient to move into a perfect house, you will be surprised what a little cleaning and paint can do for a room. You would want to have it all, and if you are willing to roll up your sleeves and build some sweat equity, you can have it all.
Homes that are in perfect condition and appearance have the most interested buyers. They may also cost a lot more, but if you are willing, have a vision, and put in the work, you can turn an ordinary house into a perfect home. You can have your musts and wants.
Remember, there are creative ways to rehab a home, including a 203K loan from FHA and other construction loans. Furthermore, you can increase the value of your new home and sell it at a profit.
Realistic Expectations
Of course, you can get everything you need AND want on an unlimited budget. We are all ultimately limited by price, and only the super-rich get to have it all. Almost everyone else eventually needs to determine wants vs needs. It is not settling if you realistically evaluate the market, your priorities, and your budget.
Expectation vs reality can sometimes be disheartening. Don’t stress, re-evaluate your musts and wants, and look for the best home that fits the description. When you find a home that has your needs, move confidently and quickly.
