Wants Vs Needs
One of the biggest mistakes we see buyers doing is not knowing the difference between your needs and your wants. I need food to survive. I want pizza.
It’s the same thing when you’re buying a house. You have to know the difference between your needs and your wants. Many buyers don’t take the time to sit down and really figure out the difference. Their needs list is so long, it becomes impossible to find a home within their budget.
Start with your dream list. Two-car garage, three bedrooms, ensuite, large backyard, walking distance to schools, walking distance to downtown, completely upgraded, quiet street, fenced yard. Once you have that detailed list, go back over the list and for each item on the list, ask if my home had all the other things on my list but didn’t have this one item, would I purchase it? If the answer is yes, that means it’s a want, not a need. Once you have done that, you will see your needs are actually a lot smaller than what you originally thought.
Now, take another look at the list of needs. Are there some solutions for this need? For example, I may say I need a home with a legal basement apartment in it to help pay the mortgage payments. If you don’t need the rental income to qualify for the mortgage, then perhaps a detached home that has a separate entrance, bathroom in the basement, an egress window, will do. You’ll have to add a kitchenette, a fire door, and some other things to make it legal. But if you expand your search, you may find you actually find a home that is less expensive even with the improvements you have to make. You might still be ahead of the game.
Get your needs list as small as possible. Next, prioritize your wants. You want a two-car garage, a double driveway, an ensuite is really important. Put those in a priority sequence. The more open and flexible you are, the more likely you’re going to be able to find a great home that you’re going to love.