Buying a home is an incredibly exciting milestone, but it’s also one of the biggest financial decisions most people will make in their lifetime. Purchasing a home shouldn’t be a spontaneous decision. Since you’ll likely be living in the property long-term, you’ll want a property that fits all your needs and can grow with you and your family for years to come. Before making any big decisions it’s essential to do your research and consider multiple factors when searching for a new home and determine what you may be willing to compromise on and what’s a dealbreaker. Here are some important factors that homebuyers should keep in mind in their search:

Location

Possibly one of the most obvious factors in choosing a home is its location. Your quality of life will be determined by so much more than the actual house you’ll be living in. You’re also buying into a community so you want to make sure that the neighborhood you choose is in line with your wants, needs, and values. For example, do you prefer to live within walking distance to cafes and restaurants or do you prefer a more quiet and secluded location? Consider your proximity to grocery stores, shops, schools, and other businesses. Spend some time in the community visiting local establishments to get a feel for the neighborhood and if it fits your needs. Drive the work commute during traffic times. Visit the home during the day and evening to assess neighborhood noise and atmosphere. Check crime rates and don’t hesitate to chat up some neighbors to gather more information.

Budget

Buying a home is one of the biggest investments you’ll likely make, but you want to make sure this purchase is something you can actually afford and isn’t going to put you into debt. When considering your budget, think about the additional costs you’ll also need to pay on top of the purchase price of the home. These will include closing costs, renovations, local taxes, monthly utility costs, lawn care, pest control, and association fees. Determine a realistic budget for a new home and stick to it. This will prevent you from spending more than you have and ensure that you can comfortably afford your mortgage payments without compromising your current lifestyle. Your mortgage broker should be patient and help you determine monthly payments with various loan terms and the current rate. Shop around for homeowner’s insurance as well since rates can vary greatly from carrier to carrier.

Size and Layout

When looking at different homes, take into consideration the size and layout of not only the actual house but the lot as well. Do you prefer open floor plans or do more confined spaces or rooms work for you? You’ll be spending a lot of time in your home so it’s essential to decide if the flow of the space accommodates your lifestyle. Some items to consider:

• Yard: When it comes to the size of the lot, do you have pets or enjoy spending a lot of time outside? Do you need to budget to add a fence?
• Kitchen: Is it a size you’ll be comfortable working in? Will your dining set fit?
• Living Room: Can you visualize your furniture in this space?
• Second living space: Is there a den, basement, or lanai that can function as a 2nd living space? If not, can you live without this?
• Layout: are there wasted pockets of space? Will the flow from room to room work with your furniture? Is there an area that can work as a home office?
• Two Story: Is your mobility able to accommodate moving up and downstairs, as well as relatives that may come to visit?
• Storage: Count closets, count kitchen cabinets. Consider adding cabinets to a garage or putting a storage shed in the backyard.
• Condos: Find out what is covered in your maintenance dues. Usually common areas, roof, outdoor paint, water, and sometimes cable. Read their rules to be sure your lifestyle will fit. Pay particular attention to rental rules in case you decide to rent your condo in the future.

Property Condition

When it comes to buying a home, the condition of the property is vital. While you may be able to get a great deal on a fixer-upper, renovations can be costly and require a lot of time and energy. Are you handy? Do you have experience and time to take on major or minor renovations? Be realistic about how much work you’re willing and able to put into the home or if you prefer one that is move-in ready. Overestimate the cost of any upgrades; experienced home owners will agree that it nearly always costs more than you expect and hidden surprises are around every turn during renovations.

Future Plans

Choose a home that can grow with you. A one or two-bedroom home may work for you now, but if you plan on expanding your family in the next 5 years, you may want to look for a home with more bedrooms, or one with a lot that has enough space to add on to the home if necessary.

If you’re purchasing a starter home and know it’s not necessarily your forever home, consider if it has the potential of being a rental property. Owning a rental property can be a profitable source of passive income if done correctly. Hiring an experienced property manager like Utopia Management can make the rental process run smoothly by overseeing the ins and outs of managing your rental giving you more free time and less headaches.

Compromise or Deal Breaker

During your search for a home, it’s important to be aware of what you undoubtedly need in a home, but it’s equally important to know what you’re willing to compromise on and what’s a deal breaker. Unless you’re building your dream home from scratch, it may be nearly impossible to find a home that has absolutely everything you want and need, so it’s helpful to set realistic expectations. Every property will likely have some kind of compromise, however, when it comes to the perfect home for you, the good qualities it offers should outweigh the less desirable.