10 Questions to Ask Yourself Before Starting Your Home Search
Buying a home is a significant life decision that requires careful consideration. To guide you on this exciting journey, we've categorized 10 essential questions into three key categories: Location, Home, and Budget. These questions will help you clarify your priorities, set clear goals, and make informed choices as you embark on your home search.
How long do you plan on living in your next home?
Knowing how long you plan to live in your next home is crucial for several reasons. First, it impacts your choice of property type and location. If you intend to stay long-term, you may prioritize a larger home or a family-friendly neighborhood, whereas a shorter-term stay might lean towards a more flexible, easy-to-resell or rent property. Second, it influences your financing decisions. If you're planning to stay for a few years, an adjustable-rate mortgage may be viable, but for a longer stay, a fixed-rate mortgage can provide stability. Lastly, understanding your timeline allows you to make informed decisions about property improvements, renovations, and resale strategies, ensuring you maximize the value of your investment.
Do you work from home or commute to work?
A long commute can add stress and time to your daily routine. Thus, the accessibility to public transportation or major highways or streets that will make your daily routine smoother and more efficient should be significant factors to consider. If you have a work from home or hybrid schedule, then you may have more freedom when it comes to location. However, you would need to ensure there is a dedicated workspace within your new home.
Do you need to be in a specific school district?
Even if you don’t have or plan to have children, schools in the area can significantly impact your home buying decision. Homes in higher-rated school districts tend to maintain or appreciate in value. Also, school districts often reflect the values and culture of their communities. Consider whether the district aligns with your family’s values and lifestyle preferences. If you have younger children or plan to start a family in the near future, it’s worth educating yourself on different school districts. One thing to note is school registration usually starts much earlier (January-March) than when the actual school year starts (August-September). So some families with school-aged children may prefer to register and settle in their new home much sooner than when the school year begins.
What are your essentials?
Now’s the time to write down everything you could possible want in your next home. Some things to ask yourself: the type of home (single family home, condo, townhome, duplex), style, age, layout, bedroom and bathroom count, lot size or backyard, pool, ADU or flex space, single story or multi-level, central HVAC, etc. Discuss whether you prefer a completely move-in ready home or are willing to do some repair and improvements to make it your own? After compiling your list, start writing down why each item is important. This will help prioritize each item on your list and enable you to categorize each item as a need vs. want. Your next home may not have every single item on your list, but it’s great to have a comprehensive list so we know what to aim for. It’s hard to start with what you are willing to give up, but after listing out all the things you DO want from the questions above (and don’t hold back on this part—list everything!) Circle three things you could possibly live without on that list.
Do you have any must-haves features or non-negotiables?
When it comes to buying a home, every buyer has unique preferences, depending on their lifestyle, preference or culture. So it’s important to have that discussion and take the time to prioritize what is truly a “must-have” or a non-negotiable. That way, it’ll be easier to pass on a house that does not have an attribute you determined was a “must-have.” Some common examples of “must-haves” or non-negotiables may be the location of the home (i.e. within a particular neighborhood or school district), away from traffic noise (not on a main street, freeway, railroad), direction of the home, walkability (to a park, shopping center, school), move-in ready, ground-floor bedroom/bathroom for elderly parents, or number of garage spaces. Knowing your “must-have” features or non-negotiables will help narrow down and focus on which homes you decide to view.
Have you been pre-approved?
If you plan on obtaining a loan, speaking with a lender and getting pre-approved for a mortgage is a critical step in the homebuying process. Pre-approval provides you with a clear understanding of your budget. It helps you know exactly how much you can afford to spend on a home, which saves you time by focusing your search on properties within your price range. The last thing you want is the disappointment of falling in love with a home only to find out that you can’t secure financing for it. Also, Silicon Valley is a competitive market and generally, all sellers will require a pre-approval letter to ensure you’re a qualified buyer.
How much do you plan on putting for the down payment?
Determining the amount you plan to put down is essential to evaluate your financial situation and consider how much you can comfortably allocate towards the down payment. Assessing this figure early on helps you set realistic expectations and refine home search accordingly. Ask yourself if you have sufficient savings to make a substantial down payment, as a higher down payment often translate to lower monthly mortgage payments. A higher down payment can strengthen an offer, especially since it’s not uncommon for competing offers to be all-cash in the Silicon Valley real estate market. Additionally, be aware of the minimum down payment requirements set by lenders and ask about down payment assistance programs.
What price range are you comfortable with?
Begin by assessing your current financial situation, factoring in your income, expenses and any outstanding debts. It’s crucial to establish a realistic price range that aligns with your long-term financial goals and lifestyle. Take into account additional costs such as property taxes, maintenance and repairs, potential renovations, ensuring that your chose range allows for a comfortable and sustainable homeownership experience. Also consider personal expenses such as future child care expenses, furnishings, and budget accordingly for travel, eating out and other expenditures. Furthermore, anticipate changes in income and expenses over time, allowing for flexibility within your established price range. This forward-thinking approach positions you to make a sound investment that remains manageable and adaptable to evolving financial circumstances.
What is your timeline
Start by evaluating your personal and financial goals, considering factors such as relocation, career changes, or family plans. Establishing a clear timeline helps align your home search with these life events. Consider the current real estate market conditions and how they may impact your timeline. In a competitive market, having a well-defined timeframe can help you act decisively when the right property becomes available. Also, the real estate market has its natural ebbs and flows. Ask your real estate agent to explain the optimal time to buy a home. Make sure to communicate openly with your real estate agent about your timeline, providing them essential information to tailor their search to your specific needs.
Are you more a house person or location person? Where are you willing to compromise?
Some individuals may place greater importance on the features and characteristics of the house, such as its size, layout, and amenities. Others may prioritize the neighborhood, proximity to schools, workplaces, and community amenities. Consider your lifestyle and preferences to identify which aspect holds more significance to you. If you find yourself more drawn to a specific neighborhood or community, you may be willing to compromise on certain features within the home itself. On the other hand, if the house’s attributes are more important, you may be more flexible about the location.
