How to Prioritize Your Home Buying Goals in a Competitive Market
How to Prioritize Your Home Buying Goals in a Competitive Market
Purchasing a home can be a daunting task, especially in a competitive market. With so
many variables to consider, it's essential to recognize and prioritize your needs and desires when purchasing a home. In this blog post, we'll go over how to set priorities and focus on what matters most in a competitive market.
Begin with Your Budget
Understanding your budget and financial situation is the first step in prioritizing your goals when looking for a home. One of the best ways to accomplish this is to speak with a mortgage lender about pre-approval for a loan before you begin looking for homes. This will help you understand how much house you can afford and set realistic budget expectations. This will also help you narrow down the list of neighborhoods and homes that are within your price range, saving you time looking at properties that are out of your price range.
Decide on Your Must-Haves vs. Nice-to-Haves
Once you've determined what kind of property fits within your budget, make a list of must-haves versus nice-to-haves. These are the features that are required as opposed to those that would be nice but aren't considered necessary for your ideal home purchase. It may be useful to divide this into three categories - needs/wants/luxuries - to help further refine your list and identify where cuts may be vital to get the most bang for your buck in a competitive market.
Get Ready To Compromise
Even if you have pre-approved financing, there is no guarantee that you will find exactly what you are looking for right away or at all - especially in today's competitive market. You may have to make some concessions along the way, but if you focus on what is most important, any concessions won't seem so bad. For example, if finding a property close to work is more important than having an extra bedroom or yard space, it may be worth sacrificing one or both in order to get closer proximity. Just keep in mind that no matter what compromises you make during the search, you will still find the right home for YOU!
The take-away:
When it comes down to it, prioritizing your goals when buying a home shouldn't be too difficult because there are only so many variables to consider; however, determining which ones should come first (and second!) can be tricky depending on the circumstances of each individual buyer. Buyers will be better equipped for success in today's competitive housing market if they understand their budget from the start (including getting pre-approved), research must-haves vs. nice-to-haves, and are willing to compromise on some non-essential items. Best of luck!
