Homeownership is still part of the American dream. Today's shoppers are approaching the task quite differently than past homebuyers. Mortgage giant Fannie Mae recently conducted a national survey regarding general attitudes in the housing market. They found that non-financial reasons are outweighing any possible monetary incentives of homeownership.
The findings indicate that quality of life issues are the new home shopping goals. Doug Duncan, Vice President and Chief Economist of Fannie Mae said potential homebuyers ".. are rebalancing their attitudes toward housing and homeownership by adopting a more realistic, long-term approach, and are less willing to take risks. This focus on sustainable housing is better for the economy, better for the housing market and better for America's families."
Instead of price, the most realistic consideration of homeownership should include:
- Commute times to and from work, school and conveniences.
- Additional expenses including general maintenance.
- Nesting potential that will allow owners to age in place.
- Amenities such as a washer and dryer, eat-in kitchen or swimming pool.
- Public school system for those interested in starting a family.
- Safety and security of both the house and the surrounding neighborhood.
How Not To Focus on Price
Getting blindsided by pricing can be challenging. Focus is essential for the process of home buying and certain steps can help:
- Check out the Competition: Consumers need to shop in their price range and consider all properties. By focusing on a slew of options, not just prices, the strategy will help level the playing field.
- Stick to Your List: Consumers need to build a list of their dream home. Bedrooms, bathrooms, yard, location and price range are all criteria. Even though a real estate owned (REO) property may allow you to by more home (IE your dream 2 bedroom compared to a foreclosed 4 room home) it may not be worth it. Many REO homes are not turn-key ready.
- Eat First: Home shoppers can easily be distracted. When looking at a home make sure you are awake, full and alert. Take notes and photographs so you can review the property in question at not rely on memory.
- Stay Balanced: Staying in the here and now will provide clarity for those overwhelmed by the home shopping process.
Set Realistic Goals
When it comes to buying a home, 'you get what you pay for.' Those looking for a bargain home may find plenty of options and can score record low mortgage rates. However, if a bargain home does not match with the reason for buying your own home in the first place, walking away from the property will be your best bet.
