Putting together a home buying wish list is an exciting step for hopeful house hunters. But finding the right home in today’s market may require separating what you want from what you truly need. Here's some tips on differentiating the two and setting realistic expectations. 

Establish your budget

In the world of real estate, there is one critical rule: Don't purchase more house than you can afford. In today’s market multiple offers are common and it can be easy to creep past your comfort level in order to win a bidding war, especially if the home ticks all your boxes. 

So, before you start filling out your home buying wish list, it’s important to establish how much you can afford, which may be different from the maximum mortgage you can get approved for.

“For some buyers, staying under a certain amount is their most important ‘need,’” said REALTOR® Cindy Beckwith, associate broker with Five Star Real Estate. “That’s why securing your pre-approval and determining a comfortable budget should be your first steps. And keep in mind that in today’s market, you’ll likely need to look at homes priced under your max amount, so you have some wiggle room if there are multiple offers.” 

Write down your wants, needs, and nice-to-haves

Once you’ve set a budget, it’s time to compile your wish list. Start by writing down everything you want in a house. If you’re buying with a spouse or partner, have them do the same. Once everything is on paper, sort the items by order of importance. 

Highlight the things that cannot be changed from the more cosmetic items. 

If you need to be in a certain location because it’s close to work, family, your children’s school, etc., it should be at the top because location cannot be changed. However, if you want stainless steel appliances or modern light fixtures, those should be moved down the list because they can be easily added in the future.  

Consult with a trusted REALTOR®

Now that you have a budget in mind and a narrowed-down wish list in hand, it’s time to meet with a REALTOR®, if you haven’t already. While there are plenty of online resources for home buyers these days, a professional agent has something the average buyer does not: a wealth of experience and local market knowledge. 

“It’s important for me to educate my clients on the market and set expectations,” said Beckwith. “Quite often it takes looking at a few homes before buyers realize what is truly important to them. For instance, I had clients who told me they did not want to look at bi-level homes. But, when I showed them a bi-level home in their desired area, they were surprised at how much square footage it had and how it met many of their wants and needs.” 

In this market, it’s important to be flexible. With limited inventory, you may not get everything you want right now, but your REALTOR® can help you see the potential. 

“Remember to think of your home as an investment,” said Beckwith. “If you find a home with good bones in a great location, you can always make cosmetic updates and add value down the road.” 

Refer to your wish list throughout the search

As Beckwith said, priorities can change once you start looking at available homes. Keep your wish list with you during the house hunt but think of it as a working document. Don’t compromise on the things that are most important but be willing to move things down the list or cross them out if you find they aren’t as critical. 

While it may change throughout the process, creating a wish list before your home search can not only help save time, but it can also help you make sound decisions when your budget meets reality. And knowing what is truly important also allows you to act quickly and confidently when the right home comes along, something that is critical in today’s fast-paced market.

“There is a lot of talk about how overwhelming and stressful the market is, but I don’t want buyers to be discouraged because it really is an exciting time and it can be a positive and rewarding experience,” said Beckwith. “If you’re prepared for the process, educated on the market, and willing to be patient and flexible, you will find a home that’s right for you.”  

For a list of experienced REALTORS® who can help guide you through your home purchase, visit the Greater Lansing Association of REALTORS® website at www.lansing-realestate.com.