BUYING A HOME: Economics vs. Emotions

USA Today (Society for the Advancement of Education), March, 1999 by Kenneth T. Austin

Priorities

Although home priorities are very subjective, they are essential to every house hunt. Schools, neighborhood, commuting distance, property taxes, energy efficiency, shopping accessibility, and recreational facilities are but a few of the considerations a buyer should make beforehand.

For the first-time home buyer, deciding priorities often is the hardest part, but worth the time and effort. It is very important to have them clear in your mind before starting, since it is easy to throw practicality to the wind when you stumble upon that adorable house, filled with charm, but totally inappropriate for you for many important reasons.

Make a list of your priorities, rate each on a scale of one to 10, then keep it with you for reference each time you look at a house. That way, you won't wake up one day in a house that is 40 minutes away from the train station when you have to commute to work.

One of the first things a real estate salesperson will ask you when starting your house hunt is which type or style of house you are interested in. It is important to know and state your preferences up front, in order to save time in your search. Styles include ranch, split-level, colonial, Cape Cod, contemporary, bi-level, Tudor, and Victorian. Each has advantages and disadvantages, depending on your needs.

Keep in mind that many styles of homes are not readily available in certain neighborhoods, an added reason for stating a preference early on. That way, if the only home style you like is contemporary and there are virtually none available in the town you want to look in, you can save valuable time.

In addition to house style, there are many factors that help determine if a particular home is a good investment, now and in the future. Location probably is the biggest factor to be considered--not only the village or town it is in, but what street and even where on the street the house is positioned. Look around at the other homes. Buying the worst house on a great street is much smarter than buying the best house on a so-so street.

Other investment features include quality of construction and materials; the physical condition of the home as to the structure, foundation, and mechanical systems; floor plan; garages; entrances; windows; decks/ porches/patios; kitchen (at least enough room to eat in); number of bathrooms (a three-bedroom house should have at least two full baths); windows; closets (the more the better); bedrooms (how many and what size); family room/den; storage areas, including attics, crawl spaces, and basement (this is a regional consideration); and dining room.

At this point, you basically are ready to begin your house hunt. If you have no restraints on when you must move, then consider the factors involved in the time of year you start your search. Sellers are most optimistic in early spring--March, April, and May--becoming increasingly receptive to offers (below asking price) later on toward, and into, the summer. Remember, though, that if you first are house hunting in the summer, you probably won't be in your new home when the school year begins. It takes time to find that perfect house, as well as to close on it.