7 Tips for How to Find Your Dream Home

To buy a home strategically, you need to keep your feelings separate from your money decisions. This means getting preapproved for a mortgage and using budget calculators to figure out how much you can really afford before you fall in love with a property. Making a prioritized wish list that separates must-haves like location and square footage from nice-to-haves like updated kitchens helps you keep your options open on cosmetic changes while not giving up on important features. Working with experienced real estate agents and making offers in a smart way—staying emotionally detached during negotiations—will help you get a home that meets both your short-term and long-term needs.

Key Takeaways

• Before you start looking for a house, use home affordability calculators to figure out how much you can afford. These tools take into account your income, expenses, and loan details to make sure your payments are comfortable and don't put a strain on your finances or relationships. This will help you avoid the common mistake of overextending.
• Getting pre-approved for a mortgage shows that you are serious and lets you make confident offers. In competitive markets, sellers prefer pre-approved buyers. The online process only takes a few minutes and locks in your budget before you start looking at properties.
• Prioritized wish lists keep people from making emotional compromises by separating things that are non-negotiable, like location, property type, school districts, and minimum bedrooms, from things that are flexible, like hardwood floors and updated kitchens that fit within budget.
• Real estate agents are experts in the market and can help you with property evaluations, closing deals, and smart negotiations. They do this while acting ethically in your best interest and usually getting paid by the seller.
• To make strategic offers, you need to be able to separate your feelings from the situation and be flexible with your choices based on market research, reasonable contingencies like inspections, and the ability to walk away if the terms aren't met. This is because buyers usually look at eight homes before buying one.

Achieving homeownership is often the culmination of a long-term goal, possibly tied to aspirations like starting a family. Strong emotional bonds develop with our homes, making it vital not to let emotions dictate the home-buying process. It's essential to approach this milestone strategically to ensure sound decision-making.

Approach Home Buying Strategically

Savvy home buyers strategically navigate the home buying process by critically assessing their needs, leveraging expertise, and making realistic decisions with long-term implications.

Fortunately, anyone — even a first-time home buyer — can adopt this approach. As you embark on your house-hunting journey, consider these practical tips.

Determine Your Affordability

Buying a home within your means is essential for comfort and financial security. Overextending on a home may strain finances and relationships. Various factors, such as income, expenses, and loan details, influence affordability. Use our home affordability calculator to estimate your budget.

Obtain Mortgage Preapproval

Having mortgage preapproval demonstrates seriousness to sellers and empowers confident offers. While not mandatory, some markets prioritize pre-approved buyers. The process is straightforward, often completed online in minutes. Once approved, avoid financial changes that could jeopardize eligibility. Start the preapproval process online and complete it in just minutes. Guide to understanding mortgage interest rates.

Create a Prioritized Wish List

Identify must-have features like location, property type, and size, alongside nice-to-haves such as amenities and aesthetics. Consider future needs, like family growth, when drafting your list.

Typical must-haves (higher priority)

• Under $350K
• Single-family home
• Suburban location with less than a 30-minute work commute
• Above average or better-rated school district
• Minimum 3BR, 2BA
• Minimum 2,000 square feet
• Attached 2-car garage

Typical nice-to-haves (lower priority)

• Walk-in closets
• Updated kitchen with gas
• Updated bathrooms
• Hardwood floors
• Large, landscaped backyard
• Deck or patio

Consider not just what you need now but what you'll need in the future. For instance, if you're planning to start a family in the home, you'll need a certain number of bedrooms and bathrooms for your family members to live comfortably.

The U.S. Department of Housing and Urban Development offers this worksheet to help you think through your priorities when home shopping.

Partner with a Real Estate Agent

A licensed agent provides invaluable market insights and guides you through the buying process, including closing. They operate ethically and in your best interest, typically paid by the seller. Referrals from friends, family, and coworkers are a great place to find an agent. You can also find a dependable real estate professional near you at AmeriSave Realty.

Assess Properties Critically

Tour homes with your agent, focusing on essential elements like structure, systems, and safety. Evaluate potential repair costs and ensure properties align with your priorities.

Balance Needs and Wants

While essential features are non-negotiable, be flexible with cosmetic updates that fit within your budget. A pragmatic approach ensures finding a home you'll cherish long-term.

Develop a Strategic Offer

If you've followed this checklist so far, you should be in an excellent position to take the next step: making an offer on a home. This is another point in the process where it's essential to think strategically. Craft an informed offer based on market analysis and with your agent's guidance. Consider reasonable contingencies like inspections and loan approvals. In competitive markets, prepare for potential counteroffers. Remember, emotional detachment during negotiations is crucial. If agreements aren't met, remain open to other suitable homes.