Buying Your Next Home With the End Game In Mind
May 28th, 2008 categories: Market Trends, Real Estate News, Relocating, Spouse Stuff
Purchasers, any purchases for that matter, are often done with one thing in mind. Specifically, possession of the object being bought. In simple terms, we found something we like, something we want to possess, and “having it” is a MUST. But, what about the cost, or the long term value of what is probably our most expensive asset, our home? Is it important to consider what its value might be, three, five, or ten years down the road? Similar to Wall Street’s most successful investors, is buying for the long term, or at least taking a value based approach, a recipe for success when it comes time to sell?
In one of the 1990’s best selling books on leadership, The Seven Habits of Highly Effective People, Steven Covey outlines key principals of personal development that lead to success in our personal and professional lives. One of his Seven Habits, the second, emphasizes the importance of “beginning with the end in mind” when making choices in life. Simply put, this means working backward from where you want to end up and making choices that will get you there. So, as a home buyer, what does that mean? How can you benefit from Covey’s advice?
For many home buyers, especially those in Northern Virginia, relocation is a way of life. Many are Department of Defense (DoD) employees, or employed with contractors doing work with the federal government. Moving and selling homes are something that oftentimes comes much too soon. But, even in a buyer’s market, forethought and considering an exit strategy or end game when making the purchase, can make the goodbye a few years later much easier to handle financially, and more importantly, emotionally.
One of the most important questions to consider when purchasing a home is, “What would prevent buyers from wanting to live in this home?” While that consideration may seem to be apparent, believe it or not, it is often more of afterthought. Instead, we concentrate on the positives, and minimize the drawbacks of the property. But that’s purely part of human nature, don’t you think? Clearly, the attractive features are important and shouldn’t be minimized. But, it’s wise to consider the drawbacks, especially those that might be deal breakers.
What sort of drawbacks are we talking about? What might prevent prospective buyers from choosing other homes instead of yours?
- Location - there’s lots to consider here. The obvious is proximity from schools, shopping, and other area attractions. Is the property hard to get to? How about traffic patterns? Is it located on a street where there’s a high traffic volume? Does the traffic make it difficult to get in and out of the driveway?
- What about the particular lot. Is it level? And, if not, does it matter. How steep is the driveway? As one blogger mentioned on their site about the a driveway concern, “Basically the only thing that is keeping us from signing the purchase and sale (which we have to do some time today) is our ambivalence about the driveway - the one thing we really can’t fix.” Where does the water concentrate or run off to when it rains? Does it drain away from the house or towards the house causing excessive wetness next to the house? These are questions that need to be considered before purchasing any property.
- What about the basement. Is it a walk-up, or preferably, a walk-out? You can bet that most buyers prefer an outside entrance/exit to the basement. With walk-outs, the additional outside light these provide are another attraction.
- Room sizes. While we don’t expect the normal home to provide us the extravagance of a luxury home, the homebuilding trend has been one of a bit more room in both the kitchen and the bathrooms, especially the Master bathroom . Remember, you can always upgrade what’s there, but it’s much more difficult to make rooms larger once the home is already built. That goes for the bedrooms as well.
- Subdivision amenities/fees. While all homes aren’t necessarily in a subdivision, or part of a Home Owners Association (HOA), when they are, they can be an important attraction, or, at times the reason for hesitation by the buyer. Some of the attractive features include swimming pool, bike/walking trails, sidewalks, and a community clubhouse, among others. For some, this package of community features is enough to tip the balance when two homes are competing for a buyer. On the other hand, HOA fees and restrictions can be the deciding factor between two competing properties. If fees are too high, and restictions too onerous, buyers can turn to many other appealing choices. Most of us just don’t need the expense and headaches.
There are many important issues home buyers consider in their search for a place to call home. While each of us tends to focus on the attractive home features, we need to consider the flip side of the equation as well. What are the drawbacks? Home buyers, at some point, become home sellers. The last thing you want to thinking when it comes time to sell is, “shoulda, woulda, coulda.” As a buyer, use some forsight and ask the critical, discriminating questions before you buy. While a home’s ”bells and whistles” can be awfully attractive, make sure you notice the blemishes as well. It’ll sure help when it gets to the end game and its time to pack up for another assignment.
