8 Secrets For Saving Thousands When Finding, Buying and Financing Your Next Home
Here is the first in a series of eight ideas that one should consider when buying their next home.
Secret #1: Understand What You NEED In Your Next Home.
Two things you need to consider here: Your NEEDS…and your WANTS. They’re two very different things.
You may need four bedrooms because of your children, or need a 3-car garage because of your three cars.
What you’ll find is your needs are fairly basic. It’s the “wants” that take a little more time to clarify. Here is a list of needs you should consider before looking for your home:
1. General price range of home. We’ll cover this ahead when discussing financing options and the amount of home you can afford.
2. Approximate size of home (in sq. footage). Make it a reasonable range.
3. General location, area, or subdivision.
4. Number of bedrooms required. Don’t forget to include any home offices or guest rooms.
5. Number of bathrooms you need. Frequently determined by the number of children you have.
6. Style and layout of home. Do you want a more formal plan, or a contemporary plan with great room designs, etc.
7. School requirements or districts.
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Secret #2: Understand What You WANT In Your Next Home.
A great way to get a handle on your wants is to take a good look at your present home. What do you like about it? Do you like its open floor plan? Do you like the kitchen and eating areas? Do you like the common area layout?
List out everything you like about your present home, or homes you’ve visited.
Now, let’s take a look at what you don’t like about your home. Do you hate the flat roof? Do you hate the master bedroom layout? Are the bedrooms too small? Is the kitchen too far from the garage?
If you dislike something with your present home, you’re going to dislike it with your new home. So the better you can identify these items, the more likely you are to avoid them.
Here’s a good suggestion: Take out a piece of paper and draw a vertical line down the middle. In the left column, write down everything you like about your present home. In the right column, write down everything you dislike about your present home. It’s also important you understand WHY you dislike something.
Now, from your list of “likes,” let’s compile a list of features you want for your new home. Here’s an important tip that will help you really narrow your focus.
Take out another sheet of paper and put two columns on it. On the left hand side, you will be listing out the features of your home. And on the right hand side, you’ll be listing out the benefits. For each feature, you want to list the benefit of that feature.
Features tell you what something IS: three bedroom, two bath, 3-car garage, etc. Benefits tell you what something DOES. Benefits fulfill desires.
For example, a great room concept (feature) will be ideal for entertaining friends and family at special times (benefit). So on the left hand side, you would put “great room.” And on the right hand side, list out all the benefits (or reasons) for the “great room” design: family entertaining, business entertaining, Thanksgiving holidays with the family, etc.
Understand What Each Other Is Looking For, And WHY
If you’re a husband and wife looking for a home, this exercise will eliminate many disagreements down the road. You will both understand what the other wants, and WHY they want it.
I recommend you RANK each feature in terms of its importance to you and your spouse. You’re both going to live in the home, so you better understand what the other is looking for.
For example, a well designed gourmet kitchen (remember, list ALL the features of the kitchen you’re looking for) may rank high with a woman, while having a workshop may rank high with a man. Try to understand each other’s priorities.
Most People Have More Dreams Than Money
Ranking will also show you areas you may need to eliminate because of price constraints.
And by having each person rank the importance of the features they want, you won’t be eliminating a high priority item and putting additional stress on an already stressful time.