Most of us who have ever searched for a home before have been there, you look at a home and absolutely fall in love. Your heart starts racing and you see another couple looking at the home, thinking about making a purchase, and you begin to panic. You feel like a home may have certain features that really excite you and do not want to miss out on being able to purchase the home. You may even be tempted to frantically call your realtor and put in a very generous offer. But, is your offer too generous? Are you overpaying for a home just because the home has some appealing features? It can be easy to see a brand new, upgraded kitchen and want to make that kitchen your own. Or is that luxurious, deep tub in the master bathroom calling your name? Or maybe it is the beautiful hardwood floors that you can envision walking on for years to come. While it is certainly important to love the home you are purchasing, features are add-ons that you could also achieve with your own money. The question is, are you paying too much for a home because you are attracted to the features?
There are some ways to avoid overpaying for home features. First, you should avoid becoming overly attached to a home that you do not yet own. There are a number of ways that you may not end up with a home. Someone could put in an outrageously high offer and you are outbid or perhaps the seller changes their mind. While it is exciting to envision yourself living in a new home, avoid becoming overly attached in case something does not work out. When it comes time to make an offer, if you are not overly attached to the home it will give you more strength and clarity to make the appropriate offer. The next thing you will want to do is put yourself in the seller’s mindset. While you may plan to stay in the home for a long time, you have to be prepared for any scenario. What if your job is transferred out of state and you have to sell the home in a few years? While you may have loved that high-end kitchen that was upgraded a year or two ago, if you sell in a few years those features will not be quite so new anymore. If you overpaid because you just had to have that expensive high-end kitchen the value to someone else may not be so high when you go to sell.
When purchasing a home you should consider scenarios that may potentially arise in the next few years. Do you plan to start a family? Is it important to be in a particular school district? Are you getting older and stairs becoming more difficult? Consider your needs and not just your wants. And, do not let your wants cloud over the importance of those needs. Trulia.com makes note of what upgrades better retain their value, “According to Remodeling Magazine (www.remodelingmagazine.com) you’re less likely to recoup your investment in a major kitchen or bathroom remodel than you are to get back what you spend on basic home maintenance such as new siding, roof, or exterior painting. Siding replacement recouped 92.8 percent of its cost, according to the study. The only home improvement likely to return more at resale was a minor (roughly $15,000) kitchen remodel, which returned 92.9 percent. Replacing roofs and windows were also high on the list, returning 80 percent or more at resale.” If you, as the buyer, pay attention to your needs and do not become too attached to a home, you can avoid overpaying for features and get the best value possible.