According to a recent survey, many Americans are giving up on buying their “dream home” due to rising home prices, and are lowering their expectations.
To put the adjusted expectations into perspective, the study found that the ideal dream home for many of the respondents would meet the following criteria:
- Single-family house
- An average of 2,402 square feet
- Central air conditioning and heating
- A convenient laundry area
- A yard
- Located close to local amenities
None of that sounds all that unreasonable. But some of the people surveyed envisioned more in their dream homes, with features such as:
- A pool
- Upscale appliances
- Custom landscaping
- A gym
- A home theater
- A greenhouse
- An au-pair suite
As you can imagine, the definition of a dream home varies from one person to another. But one thing that almost every buyer has in common is that they feel like their “dream home” is out of their budget and that they have to adjust their hopes and expectations, even when prices aren’t rising.
Home buyers typically want more than they can afford. It’s a natural, human desire. But dreaming too big could also be subtly keeping you from owning a home at all, or at least appreciating the home you do buy…
Don’t Base Your Dreams on Other Peoples’ Appearances
Beside the fact that it’s just human nature to want more than we can afford, social media and “reality” TV make owning the dreamiest of dream homes seem a little too attainable. The average person sees way too many above-average homes flashing before their eyes, and it can easily start to make someone feel like it’s the norm, rather than the exception.
Not only have the lifestyles of the actual rich and famous become an open book for people to witness on a daily basis, but even average friends can seem to be living in some pretty amazing homes.
It’s easy to fall into the trap of feeling like you should be able to have as nice a place to live as they do when you see it so often.
But sometimes what you’re seeing isn’t reality…
For example, here’s a list of celebrities who didn’t even own the home they were showing off on the show MTV Cribs.
Even A-listers feel the need to make it look like they’re living in a nicer place than they actually do. So, of course, there’s a good chance that the people you consider your peers might actually be putting on some airs as well when they post their pictures online, or have you over for a party.
That’s not to say that everyone you know is faking it. Perhaps they got an inheritance and can afford an amazing house. On the other hand, maybe they’re in debt up to their eyeballs and can’t even enjoy living in the home because they’re so stressed out. It’s just a gentle reminder to not get too wrapped up in how other people live, or let it define what you consider to be a dream home.
Steps to Help You Avoid Feeling Like You Lowered Your Expectations
While it’s easy to get caught up in the fantasy, here’s a step-by-step approach to help you stay realistic and still find a home you love:
- Get pre-approved for a mortgage before you even browse for houses online. It’s difficult not to love the features and amenities of more expensive homes. So if you look at homes priced above what you can afford, it’s a recipe for letdown.
- Ask a real estate agent to send you examples of houses that have sold in the past. It’s one thing to look at houses that are for sale online, but it’s quite another thing to look at what has actually sold, and get a feel for how much they sold for, and what the houses were like for that price range. It will give you a good sense of what to expect, but also help you to identify when you come across a house that is a great deal, or is better than most others in the price range.
- Hire an agent who will keep you grounded. Work with a buyers’ agent who can walk the fine line between being supportive of your hopes and dreams, but also firm enough to keep you focused on what is realistic.
- Buy the best house your money will buy. Once you understand what you can typically expect in your price range, be ready to buy the best one you find when you’re in the market. It sounds pretty easy when you’re thinking it through like this, but many buyers never think it through like this, and just end up wishing they could have bought a more expensive house. That’s a slippery slope, and it happens to buyers in every price range. It doesn’t matter how much money someone has to spend, they often wish they could buy a house in the next price range up.
- Be content, and appreciate your home! Even once some people buy a home, they get stuck thinking about when they’ll be able to buy a better house. If you live within your means, take pride in your home, pay down your mortgage, and build some equity, over time you can upgrade to a “nicer” house. But don’t forget to appreciate and enjoy the one you have along the way!
The Takeaway:
Many buyers are feeling like they have to abandon any hopes of buying their “dream home” due to rising prices. But the reality is, many homebuyers feel that way no matter what the current real estate market is like!
Unfortunately, social media and “reality” TV have made it even easier to feel like you should be able to afford and have more, which can lead to unrealistic expectations when looking for a house to buy.
Buying a home doesn’t mean giving up on your dreams, but it helps if you have realistic expectations based upon how much you can afford, and what you can expect to find in your price range. Stick to your budget, stay grounded, and remember that owning any home is a dream come true.
