Finding your dream home can be one of the most exciting yet daunting tasks that one undertakes in their life.
It involves not just a significant financial decision but also the creation of a space that resonates with one’s personal taste, lifestyle, and future aspirations – not to mention this will be the biggest investment in your life.
Before engaging in the step-by-step process for finding your dream home, it’s crucial to understand the elements that typically constitute the concept of a “dream home.”
These often include a comfortable location, suitable size and layout, the potential for long-term value, proximity to amenities and services, and a certain indefinable “feeling” one gets upon entering the space. Let’s break this down.
Understand There is No Such Thing As a Perfect Home
Your new home will most likely be on Earth, and as wonderous as this planet is, stuff happens. So let’s start with brand new construction since this comes with extremely high expectations. This may be your dream home, but something can wrong (albeit minor) and most likely will.
You’re going to be the very first person living in this home, so it’s never been test-driven. You need to have the mindset that you’ll be the one shaking out issues – a pipe that leaks, a/c not working properly, defects in the tile.
All in all, this is quite normal. You should understand the warranties provided by the builder/developer, the warranties from the actual products that come with the home, and most importantly the customer support provided by the builder.
Most have a system set up for handling any issues and some state laws establish timelines to remedy issues. I’ll cover that in another topic.
Understanding Personal Needs and Desires
Take time to reflect on what you truly want and need from your dream home. Consider the size, location, type of property, and features that are important to you.
Are you looking for a quiet suburban house with a backyard for your children and pets, or is an urban apartment with proximity to culture and nightlife more your speed? Consider creating a “wish list” and a “deal-breaker list” to clarify your priorities.
I would put more emphasis on the deal-breaker list regarding what I just mentioned. I’ve sold hundreds of newly constructed homes and despite not getting everything they may have wanted, my experience with new homeowners is that they still “love love love” their homes.
Budget Considerations
Understanding your financial limits is key to finding your dream home effectively. This involves not only what you can afford to buy but also the ongoing costs you can maintain. Speak with financial advisors and get pre-approved for a mortgage to clearly delineate your budget.
Getting back to that mindset thing, many first-time homebuyers come from the rental world where a landlord takes care of things. You’re now the boss of your property and you’ll be handling a lot of your issues. It’s never too early to start accumulating resources.
A good way to do this is to join Nextdoor.com, Facebook groups, and neighborhood watch groups. I’ve even seen community Slack pages.
You now have skin in the game and in the bigger picture, you are tied together to continue protecting your asset.
Leverage Technology and Research With Finding Your Dream Home
Nowadays, technology provides a wealth of information. Start your search online where numerous websites can filter properties by various criteria.
Moreover, research the areas you are considering for factors like safety, schools, transportation, and local amenities.
Working With Real Estate Professionals
A Realtor can be an invaluable guide in your journey. They can provide insights into market trends, help with negotiations, and often have access to listings before they hit the public market.
Ensure the professional you choose is well-versed in the area and type of property you are interested in. Remember, you want to make sure you’re protected and fully understand all the disclosures that come with home buying.
Viewing Homes and Neighborhoods
Visit prospective homes and their neighborhoods at different times of the day and week to get a true feel for the area. Don’t forget nighttime as well, as you want to feel safe and be aware of outside forces beyond your control. Are you by train tracks? What times do the trains go by? Do they blow their horns?
This was a real issue in a trendy LA community where I was the Sales Director. You either loved the trains or you hated it. There was no middle ground and I was clear about that from the get-go.
So, consider the community vibe, noise levels, and traffic patterns. When viewing properties, try to look past the current owner’s decor and imagine your life in the space. Tip to sellers: Take down the family photos so the prospects can better visualize this as their own space.
Think Long-Term
While your current needs are important, also consider how your life may change in the future. Can the home accommodate potential life transitions, such as expanding your family or working from home?
Having Patience and Preparedness to Act
The perfect home may not come up immediately, and the search can take time. Patience is key. On the flip side, be prepared to move quickly when you do find the right home, as desirable properties can sell fast.
You’ll most likely know how hot the market is going in on this journey,, and don’t get discouraged about losing out on a home that you really wanted. From my experience, 99 out of 100 times the next home you find and end up getting will be something you love even more.
Inspection and Appraisal
Before finalizing the purchase, have the home inspected by a professional to identify any potential problems. Additionally, the lender will require an appraisal to determine the home’s market value. I’ll cover the inspection and appraisal process as another topic.
Closing the Deal
Understanding and preparing for the closing process can help alleviate stress. Be ready for paperwork, legal aspects, and various closing costs. There can be sticker shock on closing costs which can usually run around 2-5% of the total loan amount.
Personal Touches and Making It Home
Finally, once purchased, personalize your dream home to reflect your aesthetic and functional preferences. Small changes can make a big difference in making your new house feel like home.
Remember, finding a dream home requires a blend of emotion and practical thinking.
It’s a personal journey, and settling in the right place is as much about the feelings it evokes as it is about the number of bathrooms or the square footage.
In 2024, the landscape of home buying presents a mixed bag of trends and predictions. While some prospective buyers held off on purchases in 2023 with the hope of a more favorable market, they are now facing a year that continues to pose challenges.
Mortgage interest rates remain relatively high, and housing inventory is low, suggesting that 2024 will not necessarily be an easier time to buy a house.
Despite these difficulties, there is a forecast for existing home sales to increase to 4.6 million, up from 4.1 million in 2023, with an expected inventory rise of approximately 8% by the end of the year.
However, this increase in inventory may not alleviate the pressure on buyers, as existing home stock remains at a scant 3.5-month supply at the current sales pace.
On the pricing front, there’s a prediction of muted price growth, with a real estate firm expecting a 1% drop in home prices as the 30-year mortgage rate averages 6.6% by the end of 2024. This contrasts with the resilience of housing prices in the previous year despite a jump in mortgage rates.
Conclusion on Finding Your Dream Home
By preparing a proper mindset along with your financials, you will find yourself ahead of the pack while hunting for your dream home. Keep in mind this is an emotional process so you’ll be a better player in this game if you understand the boring stuff as well. That could turn out to be very significant when it comes to enjoying your home.
