Really think about it? How much house do you really need? I might get some flack for proposing such a question however it really had me thinking recently. After previewing thousands of homes over the years whether newer construction and/or older construction of various square footage, I stopped and really thought about my clients wish list.
In New Jersey, when I ask prospective home buyers (not real estate investors) for their wish list the list looks something like this (average):
- Price range: $300,000-$900,000
- Number of bedrooms: 3-5 bedrooms
- Bath count: Minimum of 2 baths
- Finished basement
- Finished attic
- Garage
- Fenced yard for their dog
- Property taxes under $12,000 (if possible)
- Great schools (subject to opinion)–but let’s say Ivy League bound is part of their dream list
- Near NY trains
- Sense of neighborhood community
- Tree lined streets
- Remodeled home OR fixer upper (HGTV here we come–we can rehab)
Wish list seems fair enough right? Sounds pretty standard but what’s so interesting is when we get to previewing, it’s uncanny how home buyers widen their eyes when they drive by mansions (mini or modest), anxiously gawk when they see a totally renovated dream home fit for a dream home HGTV episode. I admit, sometimes I walk through close my eyes and imagine like I’m Cinderella when I’m touring these homes. Mansions, over the top over 4000-6000 sf homes. Fine we’re not talking about opulent creme de la creme luxury homes okay but for average standards–let’s call them mansions just for the fun of it. Suddenly the wish list matters not and home buyers shift their search to the hunt for a perfectly remodeled BIG home.
HERE’S MY BURST THE BUBBLE TIME….
I’m happy helping clients source their dream house (mansion or not) yet to be a responsible housing advocate, let’s think about this… Are you looking for a house OR looking to create a home environment. Are you looking to buy a house for your needs or are you looking for the impress yourself and others factor? Regardless of your motivations–did you think about how that would affect your livelihood? For instance, if you were originally scoping about homes in the $300,000 range and then became enamored by the “model perfection home with a price tag of $500,000 (because you’re qualified to borrow that amount) would you still have the luxury to save? Save for travel? Save to eat? Save for school? Save for a new car because my car is mechanical nightmare? Gasp, save for shopping? What about remodeling costs? Gasp Gasp Gasp! I know…
Take that in for a minute….
Just because you CAN afford the “mini-mansion” since your mortgage company thumbed up the idea–how much house do you REALLY need? What would happen to you if you or your partner/husband/wife etc experiences a company layoff? Will you be able to pay the mortgage? It’s a shuddering thought yet given the rocky real estate market the last several years (ERH remember the real estate crash and economic downturn)?
Let’s learn from that period and make smarter even responsible choices. Buy a house that you really want of course, but do it for yourself because no one else will be paying the mortgage payments for you other than YOU! Good luck on the house hunt and if you’re looking in New Jersey I’ll help you find a house you can AFFORD, just enough to transform it into your DREAM home! Outside of New Jersey–no problem, I can refer you to an equally responsible real estate consultant! Happy House to Home Hunting!
What do you think BIG house and drain your travel budget or modest home?
