Are you thinking of buying a new home but are having a hard time deciding where to settle? In this video, I’m going to walk you through an exercise to narrow down your search and help you understand what you should consider when buying. Because there are so many things to consider when purchasing a new home, this exercise will help you avoid becoming overwhelmed and will get you into the house that’s right for you.
Understanding The Buyer’s Triangle
As a home buyer, I’m sure you have plenty of questions about where and what you should be purchasing as your next house. Should I be near work? Should I be near schools? What’s the best area for my budget? All of these are completely normal questions to ask. To help you navigate the experience, I want to explain an exercise that we call the Buyer’s Triangle. When you’re buying a home, the best way to make a decision is to use the process of elimination regarding your needs and your wants.
Ultimately, there are three things to consider when buying a new home. The questions you should ask yourself are:
- What are my ideal monthly payments?
- What is the convenience of the location?
- What features am I looking for in your new home?
Before you get started, it’s important to understand that it’s extremely difficult to get all three of these factors in one property—regardless of your budget. The goal of this exercise is to weigh all three options against each other so you can put down on paper what’s most important to you. If you can get two out of three on your wishlist, that should be a win.
For example, let’s say you find a home you want to buy. It’s a great price in a great neighborhood, but the interior needs to be updated. What if you went $20,000 over budget but found a home in your dream neighborhood? What if you stayed under your purchase price and got everything you wanted in a home, but you sacrificed your location? As you begin to list your needs and wants, you’ll start to narrow down potential locations so you can begin your house hunting. A good real estate agent will help you realize that as well and that’s something that we can and help you with.
Finding The Right Property
I need to warn you that most people end up buying the opposite of what they come up with after doing this exercise. By doing this exercise, however, it helps you start thinking about the process so you can find the perfect home for you. We’ve found that by listing your needs and your wants concerning location, price, and amenities, you’ll be able to find the home that is the best investment for you.
I hope the Buyer’s Triangle exercise has narrowed down your search in finding out what’s most important in your next home. Regardless of the property you’re purchasing, knowing your numbers is the most important thing to understand in advance. I know some mortgage advisors who can help you, so please reach out if you have more questions!