What Are Your Homebuying Goals?
With the dramatic fluctuations in housing prices over the last two decades, consumers have a new respect for homes as investments. But the flip side is that your investment is still a home, one you’re likely to occupy for many years.
According to the annual Homebuyers and Sellers Generational Trends published in March 2021, the National Association of REALTORS® found that the primary reason buyers cite for purchasing a home is simply the desire to own (27%). Other reasons include but are not limited to:
Desire for a larger home (10%)
Desire to be closer to family and friends (9%)
Change in family situation such as marriage or birth of children (8%)
Job-related relocation or move (6%)
Desire for a smaller home (6%)
Desire for a home in a better area (6%)
Desire to be closer to jobs, school, transit (3%)
What are your goals for buying a home? You might want a different kind of living experience, such as moving from an apartment to a single-family home with a private garage and yard. Your family may be growing, so you have to think about school districts and proximity to parks and other appropriate recreation. You may want a new or custom home, a vacation home or an investment. If you have pets, you may want a home more suitable for them.
Homebuyers who chose a newly built or custom home wanted to: avoid problems with electricity and plumbing (44%), choose and customize design features (30%), enjoy the amenities of new home construction (24%), go green and energy-efficient (15%), have smart-home features (10%). Twelve percent of homebuyers said there wasn’t enough inventory of previously owned homes where they wanted to purchase.
Homebuyers who chose a previously owned home wanted: a better overall value (35%), better price (31%), more charm and character (20%), and to own a fixer-upper and do the work themselves (6%). Lack of availability in new homes led 10% of homebuyers to buy a pre-owned home.
Sixty-two percent of buyers chose their neighborhood for the quality, convenience to work (45%), affordability (43%), convenience to family and friends (41%), the design of the neighborhood and convenience to shopping (29%), and convenience to schools (23%). Other considerations are the availability of larger lots, walkability, convenience to the vet and outdoor space for pets (24%), convenience to health facilities (15%), among other reasons.
When you buy, make your goals long-term. Buy within your means, butmeans but choose the best home you think will serve your household’s needs for the longest period of time, at least between five and ten years or longer. The longer you own a home, the more equity you’ll build – for yourself, instead of for someone else. Every payment you make, plus the rules of inflation will eventually allow you to recoup most if not all of your investment, andinvestment and give you a profit when you sell. You’ll have a more stable environment, longer-lasting relationships, and more educational and social continuity for your children when you stay in a community longer.