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How big of a house should I buy? That’s one of the many decisions a homebuyer must make, and numerous factors affect the answer. Whether you’re a first-time homebuyer, or looking to upgrade or downsize, these tips will help you figure out how much home your family wants, needs — and can afford.
Consider Your Lifestyle
Choosing a home requires you to think about HOW you live. Do you entertain often? Then you’ll probably need a big kitchen and open living space. Love outdoor time? Then you’ll be more interested in properties with porches, decks and larger yards. Have a ton of hobbies? Storage space will be high on your list of priorities.
Pinpoint Your “Must-Haves”
How many bedrooms and bathrooms do you need? Do you want to be close to your job, or your kids’ schools? Are you dead set on having a two-car garage or a big kitchen? Narrow down your list of must-have features to the top four. This is especially helpful if you’re on a tight budget. Focusing on the amenities you cannot live without will help you to find properties you would be happy in, and easily weed out the rest.
Honor Your Budget
Once you look at your finances and determine how much home you can afford, let home price be a big driver of your search. Avoid splurging for a bigger home if it means you’ll be financially strapped making the mortgage payment every month. An important part of this step is getting pre-approved for your mortgage, so that you truly understand what size home you can afford.
Map Out Your 5-Year Plan
Buying a home is an investment in your future. Decide what will suit your life not just now, but in a few years down the road. Sure, a tiny loft in the middle of the city may be tempting now, but will it fit into your plan when you have kids? Or, will you be retiring in a couple of years and want to travel extensively? Then a big home with lots of upkeep may not be your best choice.
Think about your plans for your career and family over the next few years, and take them into account when you’re deciding on how big (or small) your new place should be.
Factor in Your Age and Health
Bigger isn’t always better. Lots of rooms and an expansive yard can be hard work to keep up! Choosing the size of home that will make you happy and comfortable also hinges on your age and mobility. While younger people may think nothing of steep staircases and multiple levels, older buyers may want to avoid them. In these cases, a smaller, one-level ranch or condo may be the better choice.
Think About Your Dream Location
The size of home you can afford is greatly impacted by the city and neighborhood you want to live in. You may be able to afford a 3,500-square-foot home in a small town or suburban neighborhood, but can only swing an 1,800-square-foot home in a hot city or highly sought-after area of town.
If you’re willing to bend on your location, you’ll probably be able to afford a larger property. However, if you are set on specific locations, you may need to look at smaller places to stay within budget.
Now, Balance It All
Once you’ve worked through the previous tips, it’s time to put them all together. Use your budget, lifestyle, future plans and preferred location to determine how big your new home needs to be.
For example, if your budget is tight, and you plan on having children in the next few years, you may opt for a more cost-effective location to find a house with the space you need. On the other hand, if your children have left the nest, you may decide to move to a convenient condo in the middle of a bustling city to enjoy your newfound freedom.
Deciding on the size of home you want to purchase early in your planning is an important part of your homebuying journey. Using these tips can help you make the choice based on your lifestyle, your family needs, and your budget. By setting a few must-haves up front, you can make sure you get into a home that will be comfortable and affordable for you and your family.
