Buying: The Most Important Questions
Lesson time 05:46 min
Robert walks you through the most important considerations you should weigh before buying.
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Topics include: The Four Big Questions · Sometimes It’s Best to Keep Renting
[MUSIC PLAYING] - Buying a home can be very emotional, and there are a lot of psychological and emotional effects of the process. First of all, just the decision, do you want to buy a home, can be a big one in itself. Because you have to think about, how long are you going to live there? Are you going to have a family? If you are going to have a family while you expect to live there, how many rooms are you going to need? What school district do you want to be in? Do you want to be close to your extended family? Do you want to be close to work? Do you want to be far from work? And so there's so many sub-decisions under, do I want to move, that it can really end up being a lot. And so try to not let that overwhelm you and start at the top level of, do you want to own a home, and will it make you happy, and your family happy, in the home? And then just commit to it. Then after you commit to it, make all the other decisions, and move fast to the next phase. And the next phase is finding the home. [MUSIC PLAYING] If you're thinking about buying, there are four things to consider. One is, what is the right home that you want? Two is, what is the right neighborhood that you want? Three is, what is your timing? And then four is how much do you want to spend, and how much do you want to have in your bank after you spend? And so in terms of the home, it is a two bedroom? Is it a three bedroom? Is it a four bedroom? And you think about the context of, how long are you going to live there, and how is your life going to change over that time? What kind of optionality do you want for that home? Do you need to have a private office? What are your needs? The second is, what is the neighborhood? What is the city, the community? What do you want to feel when you walk outside of your door? And that matters a lot. And what I'd highly recommend you do is hire an agent who you can share your aspirations with and can give you context on the nuances of different neighborhoods-- not just the neighborhood, but really the block. Then three is, what is your timing? Do you need to be there in six months? Is it for a job? Do you have a year where you can look? Do you have two years? Do you have to be there in three months? That will dramatically change the type of properties that you look for and your urgency. And then lastly is the financial commitment. What is your price range, and how much do you want to have in your savings after you buy a home? And do you have a mortgage? And are you pre-approved? Are you not pre-approved? Get a pre-approval. How much do you want to have down? And that's not just a financial decision. It's also an emotional decision. For people that are thinking about buying a home, they often ask themselves, how much of my bank account should I put into the home? Now, that's a very personal decision depending on what your view is of your financial outlook, both in terms of will your income increase over t...
About the Instructor
As the CEO and founder of Compass, Robert Reffkin has used modern technology to revolutionize the real estate industry in the U.S. Now he’s demystifying the ins and outs of the American home-buying process and sharing tools that will help you buy or sell a home with confidence. Learn how to approach your search, choose an agent, make an offer, and more. Your future home is waiting—let Robert help you find it.
Featured Masterclass Instructor
Robert Reffkin, the founder and CEO of Compass, helps you get closer to finding your dream home by simplifying and demystifying real estate.Explore the Class