Choosing Your Next Home

Choosing which home to purchase is the critical phase of your search - make sure the house is right for you before deciding to commit your hard earned money to it. Consider your wish list, the location, and the price when making your final decision.

Consider the Neighborhood
You've already researched the community (hopefully!) in general terms - now it's time to take a final look at the neighborhood to make sure it's the right place for your family. Consider your daily commute to work, the school your kids would attend, the local shopping and malls - anything that affects your lifestyle and daily routine especially from a time consumption standpoint.

Check the Details
Make sure the house is right for your family and lifestyle. Will your furniture suit a home with home gym in it? Is the yard big enough? Does the room layout work well for your family's habits? Do you frequently entertain guests or host parties or dinners? Check through your wish list and notes to make sure you're not forgetting anything.

Research Multi-Family Units
There are some specific concerns involving multi-family housing. If you're seriously considering this type of home make sure that you do the research so you know what you're getting.  This is especially true if you plan on renting out the other unit(s) to either a relative or to a stranger.  In either case, your state's landlord and tenant laws will apply and could be enforced through the courts if problems arise.

Don't Buy if You're Not Sure
Don't buy a home out of frustration or impatience or because your peers have one and you don't - this is a major investment and it should be treated as such! If the market is too strong or your standards prove to be unreasonable you may need to revise your expectations before continuing the search.  And, remember that you will need to allow enough after tax income to meet living expenses after paying the mortgage every month! Under no circumstances should you compromise yourself when buying a home. If something does not give you a good vibe about the property you are interested in, your intuition could be telling you something you are not consciously aware of.  Do not second guess any aspect of the transaction!

Be Wary of Overheated Markets
Think very carefully before getting into a bidding war or buying a home with a hyperinflated price, especially now that interest rates are on the rise and the markets are cooling off in some areas of the country. Extreme sellers' markets can develop when national and local economic conditions are exceptionally strong, but these bubbles never last for long periods of time. During these periods prices can rise dramatically and buyers can be pressured into taking aggressive and often irresponsible actions. Be careful however, as these strong periods are inevitably followed by potentially severe corrections, or possibly a long term decline at a slower pace which can be take a decade or so to pass. Homeowners buying at peak periods often find themselves with substantial paper losses - a condition that could take years of appreciation to correct.  Clearly, the best policy would always be to buy low and sell high, or a moderate version of that, but never the other way around! 

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