Buying a home is a significant investment and an important job. It is also a chance to examine your life and think about the future. Are you a young couple just starting your life together and looking for your very first home? Are you getting close to retirement, with the offspring having fled the nest? Or, as sometimes happens these days, with offspring who are reluctant to leave? The needs of different people’s situations will change as they go through the various phases of life, not to mention other differences in lifestyle and resources. For everyone, though, their future will be largely determined by the choices they make. The thing that must be done, which is difficult for many, is to balance wants against needs. Where the dividing line is drawn normally comes down to a matter of budget. If you are very well off and reliably so, then you can lean towards satisfying your wants. If you are just beginning your career, or your income source is subject to frequent or unexpected changes, putting the highest priority on your needs is a matter of establishing a firm base.
It is easy to overbuy when the market gives an upper hand to the buyer over the seller. Even if it is truly a terrific deal, the economy and the market fluctuate over time. You have to avoid the temptation of overbuying.
Now let’s look at some essential things that definitely fall into the “needs” camp. If you are a young couple just starting out, this is a good time to take some time with your spouse and discuss how many children you would like to have. It is good for a family to have a secure environment. You don’t want to be buying a bigger house every few years for another child coming. Do you manage a business out of the home? Then shop for a home that will let you have an office and storage areas.
Next let’s take a moment to look at the items in the “wants” category. First, take a look at your lifestyle. If you entertain regularly then you might focus on a house with a large formal dining room and kitchen or a backyard patio and pool. If you don’t envision this playing a major part in your regular activities, then turn your attention to other pursuits. A game room? An area for a workshop? Things that cater to a hobby or interest are a luxury, you must admit. This may be difficult to accomplish, but you might have to cut down your want list to meet the cost line.
The boundary differentiating wants and needs can vary significantly between different individuals depending on their income, plans for the future, and how much maintenance they are willing to do. This is a good time to sit down and identify what your wants are, as opposed to what you NEED, and set the appropriate priorities. With these concepts clearly in mind, it’s time to go out and find your perfect place!
Article provided by Automated Homefinder, the Denver real estate professionals of Colorado.