Often times I find myself coaching clients on the process of choosing the right home for them. For a first time home buyer, that is usually a place that is a solid investment in future equity. It’s frequently a home that needs a bit of work, much of it DIY to keep costs low, with the result being a home that 2-5 years later, has solid equity, not just from market growth, but forced appreciation from the work done by the owners. These searches require a strategic balance of emotional harmony, with a very practical analysis of how that home will grow wealth over time.
When working with investors (which I will dedicate multiple blog posts to), it’s all about the numbers. Desired return on investment, cap rates, operating costs, capital reserves and budgeting, etc. We search for homes that are in steady growth neighborhoods, with structures and yards that support as many tenants as possible, with easy maintenance, and often prioritizes function over form. It’s about as far away from falling in love as you can get (although this might cause you to fall in love with your portfolio!)
But let’s get to the romance:
Then there are the buyers that need to fall in love. They usually have owned multiple homes, leveraging equity over the years, and have built a nest egg that allows for flexibility, putting their ideal home within their reach. They typically have a living situation where they are not under pressure to buy under a deadline, but rather can wait for the right property. Once that idea of a dream property is within reach however, the reality of finding it can be challenging.
Finding your dream home is like dating. If you take the Tinder approach, being too loose with options, you’ll find a lot of homes, none of which feel quite right, with the process often leaving you feeling exhausted and discouraged. On the opposite end of the spectrum, similar to eHarmony, if you’re too specific, you could find yourself virtually forgetting that you’re even on the search for a home due to the lack of perfect matches (suddenly remembers forgotten eHarmony account). Finding a balance between the ideal and the reality is key.
I met my friend Pete at the Loft in Poulsbo, and he gave me some great advice after observing my dating history (have you ever seen an airplane try to take off without wheels?). He told me that I have a virtually unlimited number of wants, but very few actual needs. So we sat and went over all the wants I could list, and then arranged them in order of importance. The items at the top were clearly not just high level wants, but absolute needs. Like the cream rising to the top, we looked at this short list, and set the rule of only leaving 5 needs at the end of this exercise. After further shuffling and reshuffling, I ended up with my need-to-haves in a partner. These are the items that I could never compromise on. A dozen nice-to-haves could never replace a single need-to have. This is a struggle with buyers as well, finding a property that is missing a key need. It may have a ton of other cool features, but with that one item missing, it will never be THE home. A sign that this is happening to YOU is when you break out the ol’ pros and cons list. You are justifying the purchase of the home through practical measures. Just like you wouldn’t want to decide your life partner based on a list, you shouldn’t chose your forever home by the same measure.
One of the things that all home buyers in this position should have on their short list of needs, is hygge. Hygge (pronounced hooga), is a sense of well-being, warmth and wellness. We have incredible instincts for knowing when a home is right for us. Sometimes, with the first step onto a property, it hits you: love at first sight. Other times, that feeling grows through the tour, as the home and grounds unfurl, revealing your needs being met. Regardless of how it happens, you should leave feeling excited and emotionally inspired. This is the same feeling when you meet a good candidate for partnership. Many of us know this feeling, and feeling it in a home is just as important.
Now that you know what your need-to-haves are, you can avoid the pitfalls of ‘two legged’ and ‘three legged’ tables, homes only meeting some of your needs, leaving you feeling like you’re compromising. Finding that home WILL happen, and the process will be more efficient, less confusing, and you’ll be able to entertain properties, and pass on properties, without as much feeling of conflict and self-doubt. In case you haven’t picked up on it, this is why I love coaching. Just as it’s exciting to see a friend find their life partner, it’s also exciting, and very fulfilling, to see a client find their forever home.
Always available to chat, about your housing love life, or whatever you might need
-Cameron
