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Are you Buying A House Or A Home

By
Real Estate Agent with Keller Williams Select Partners

Are You Buying a House or a Home?

As you read and study about buying real estate, you will often find the words "house" and "home" used interchangeably. There is a huge difference between a house and a home.

A house can be a place to eat, sleep, park your car, and put all your "stuff" (including other family members). It is a material possession and an investment. A home is where you feel comfortable, warm, safe, and protected.

A home is where you live.

A house is something you buy logically. A home is an emotional purchase. When buying real estate you have to balance your emotional wants and your logical needs because there will almost certainly be a time when the two conflict.

Example

For example, you may want a house with a view, but the payment is higher than you feel comfortable with on a thirty-year 30 year fixed mortgage.

What do you do?

Purchase the house anyway and budget more carefully for the next few years? Buy the same house without the view and get it cheaper? Make a larger down payment by borrowing from your 401K or family members, so you get a lower payment? Get an adjustable rate mortgage with a smaller payment instead of a fixed rate loan? Or buy a smaller house and still get the view?

When viewing the house, most people look at it emotionally and envision it as a safe, happy, comfortable home. Later, when making the offer or filling out a mortgage application, your logic may begin to kick in, instead. That's when "buyer's remorse" may come up.

Balancing Act

The trick in buying real estate is to view all decisions with both a logical perspective and an emotional perspective. If a situation presents itself that requires a trade-off, decide on whether there is a huge conflict or a small one. Logic should win the big conflicts, but emotion should always be a factor, even winning the small ones.

You will find yourself owning a warm, happy, safe home - and an investment for the future at a price you are willing to pay.

Dana Couch-Davis
Kendall Haney Realty Group - Memphis, TN
CRS, GRI, ABR, SRES

Well that is certainly interesting Regaine.  You have to really way the emotional versus the logical and too many times some buyers make the emotional decision which can get them in prooblems.

Jun 24, 2008 10:14 PM
John Bucco
Liberty Realty - Hoboken, NJ

I never looked at the 2 words that way, certainly a different perspective.  Thank you.  Nice post

Jun 24, 2008 10:39 PM
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland

This is the classic "head versus heart" argument. What do I want instead of what can I afford. In the ideal world we get both!

Jun 24, 2008 10:44 PM
Karolina Chrystaleva
B2b Marketing - Ellabell, GA

Very informative article. Buying a house is a serious decision. It is the largest purchase one has ever made in his life. It is not an easy task to find an ideal place to live. Recently I have come across one interesting service http://climate.fizber.com/ With the help of climate watch homebuyers can check what the climate is like in another town or city before they move there.

Jun 25, 2008 01:59 AM
Jim Fischetti
The Fischetti Group/Keller Williams - Wake Forest, NC

The other trick is:

 

sticking to a budget when looking.

 

Jim

Jun 25, 2008 08:33 AM