4 compromises homebuyers should NEVER make, even in a seller's market

Buying a home, whether it’s your first or your fifth, is all about compromise. You start with a wishlist that includes every amenity you’ve ever wanted. Then you whittle down that list until you have your “must-haves.” Even then—because no home is perfect—you edit that list down further.

Compromise is the name of the game when it comes to buying a home, but there are certain areas where you should never budge. Here are the four things you should hold sacred while buying your home.

Your (and your partner's) goals

When buying a home, sometimes you’re buying an asset, and sometimes you’re buying a lifestyle. Either way, knowing your goals will help you decide what to invest in and what to avoid.

If you're buying with a partner, it's crucial to make sure your goals are aligned before starting the homebuying journey. It's a much harder conversation to have at an open house or in front of your mortgage lender.

Sticking to your goals is all about being intentional. Before you start house hunting, write your goals down, ground yourself, and come back to them regularly. The most successful homebuyers are intentional about what they want.

Budget

It may be tempting to buy above your budget if you find a home you love, but doing so can lead to long-term problems. Getting in over your head can quickly turn a dream house into a nightmare.

Want to make sure your budget is realistic? Get pre-underwritten, not just pre-approved, by your mortgage lender. With pre-underwriting, the lender carefully reviews your ability to pay back the loan before a property is involved. Put simply, pre-underwriting is the only reliable answer to a big question: “how much can I spend on a home?” It’s a written commitment from a mortgage lender confirming the loan amount and program you’re qualified for.

Location, location, location

You can change almost anything about a home, but you can’t change a neighborhood. No amenity matters if you're miles from where you want to live – even if it is the perfect house otherwise.

Yes, it's true that you may not be able to afford the hottest neighborhoods, but that doesn't mean you can't find a more affordable area you love. Identify your favorites, then widen the circle. Before locking in on any location, go one step further and explore each neighborhood you're considering in person to make sure it has what's most important to you, whether it be good schools, walkability, or social life.

Fixer-upper vs. Turnkey.

Consider your appetite for big renovations, and the costs associated, when buying a home. If you've never swung a hammer or don't have the patience to live in a less-than-desirable home for a lengthy period, you could end up regretting taking on a fixer-upper because of a lower price tag.

About the author:

Ryan Dibble is Chief Operating Officer of real estate startup, Flyhomes and an early employee of the company. Over the past five years, Ryan has built several core functions at Flyhomes, including both the Mortgage and Title & Escrow divisions, and ushered thousands of customers through the homebuying process.

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