Before you start your journey of looking for a home, it’s wise to develop a personal philosophy that can guide you throughout the process. Here are a few questions to consider when developing your home-buying philosophy.
How will I know when I’ve found the right home?
This may be the most important question you ask yourself. Everyone has a slightly different answer to this question. The value-conscious buyer might answer, “When my home appreciates 10 percent,” while another buyer might answer, “When I’m excited to come home each day.” Know what logical or emotional milestones you are waiting for and it will be much easier to make the right decision.
What am I willing to pay?
A lot of buyers include their philosophies about money and investing in their home-buying philosophy. For instance, many buyers stick to the old adage, “Buy low, sell high,” and place a huge emphasis on timing the market perfectly and finding undervalued properties. While no buyer adopts a philosophy of overpaying, some are determined not to delay the transaction with nickel-and-dime negotiations.
What is my timeline?
Sometimes, there are special circumstances that make scheduling an important element of the decision-making process. For instance, are you trying to close escrow before the school year starts or before a job transfer takes effect? In these instances, you may need to include urgency as an important part of your philosophy—to make the right decision, but to make it quickly and without hesitation.