Are you looking to buy a Home or a House?

When you do a bit of research on the topic of buying a real estate property, you will run into the words "home" and "house" quite a bit, and they will often be mixed and matched as if they have the exact same meaning. In general, and as far as a dictionary is concerned, that may be true. However, in the real world, that could not be further from the truth.





Differences





A house will be where you place your kids and family members, and also where you park your car, sleep, eat, and store all your belongings. It is simply an investment and a possession that you can call your own. A house is something you will buy through planning and logic, with a backbone of financial thinking.





Conversely, a home will be a place that you and your family feel comfortable in. Your family will feel protected, safe, and warm. A home will be where you "live" and will normally be a purchase made on emotion as much as it is logic.





This can lead to a conflict when it comes time to pick out where you will reside. When purchasing a property you will undoubtedly need to find a balance between your logical "needs" and your emotional "wants."





For instance, you may have found a home that is absolutely perfect. It has all the amenities you desire, as well as a wonderful view. However, suppose the payment is a bit higher than you think you can commit to on a long-term mortgage.





What are your options?





Make the purchase anyway and try to tighten up your budget?


Try to find a similar house with fewer amenities or no view?


Borrow money from a friend or family member to make a larger down payment?


Opt for an adjustable rate mortgage instead of fixed because it offers a lower payment?


Look for a similar home, yet smaller?





Generally, when someone is viewing a home they are doing so on an emotional level, and simply focusing on how happy and safe they may feel there. However, later in the process when you start filling out paperwork, your logic may hit you and make you start to have doubts. That would be where buyer’s remorse sets in, but that’s an entirely different topic.





How do you balance it all?





The hardest part of purchasing real estate is trying to balance both the logical and emotional aspects. When in the process of a deal, and a conflict between the two arises, you will need to decide how big that conflict is. If it is a large conflict, then your logic should be given the upper-hand. The last thing you will want to do is agree to anything that you will not be able to afford down the road. However, if it is just a minor conflict, then you should allow your emotion to help you come to a decision.





If you can do this, and balance these factors, you will soon find yourself that is a house and home, all wrapped in one wonderful package.











Nick Muller


king-and-assoc.com