Planning for What You Need (and Want) in a New Home
While it would be nice to have everything you've ever wanted in a new home (who doesn't want a swimming pool?!), most buyers will opt to make a few sacrifices in order to make their home fit within their budget. For example, you may opt for slightly less square footage in order to have as many upgrades as possible. Or, you might choose your second-favourite neighbourhood (as opposed to your first favourite) because it has bigger backyards.
It’s smart to start the homebuying process with a strong sense of what you need in a home along with the things you want. With a bit of proper planning, you should be able to incorporate many of these things to get a home that works for you at a price you can afford.
Identifying Your Needs
Your needs are the features and amenities you absolutely must have in the home - they are the deal breakers. For instance, some people don’t mind living far from the city if it puts them in a bigger home at a lower price, while others would resent the commute every single day. Some may not care if they have hardwood floors, but a pie-shaped lot is a must.
Some of the things you might identify as needs are:
- New home affordability
- Number of bedrooms and bathrooms
- Location or neighbourhood
- Home style (e.g. detached home vs. front attached)
- Good schools or being close to a particular school
- A fenced yard for the dog
Needs can vary greatly from family to family. In most cases, the things that count as needs are things that would be difficult to change in the future. For instance, if the home is not in your preferred school’s district, you couldn’t exactly move the house.
What Are Your Wants?
Wants are the things that you would really like to have in your new home, but you’d still be happy if you couldn’t get them. Usually, these things are upgrades or design features. Many times, a want is something that you could add later. A finished basement might be an example of a want. While you may want this to start, if there’s another home that better fits your needs without (better layout, upgrades etc), you’d select that one. While it's recommended you finish your basement at the time of a new home purchase, you could always tackle this later.
Wants Are Sometimes Needs
People often talk about wants as though they are something that you have to give up in favour of fitting the basic needs into a home while still keeping it affordable. However, buying a home is an intensely personal process. Something that’s a frivolous want for one family may be a need for you. Don’t let others’ decisions make you feel bad.
For instance, some people would not choose a floor plan that includes a separate dining area. To these people, it may seem like an unnecessary waste of space when they could be using that square footage for a larger great room or kitchen. However, you might consider that same dining area a need because love to entertain and enjoy cooking dinner for family and friends. To you, this room is something that’s going to greatly increase your happiness in your home, so you should definitely find a way to include this in the plan.
Getting What You Need and Want in a Home
You will probably have to find some balance between getting all of the things you need and want in a home and getting a home that’s within your price range. The best thing to do is to start taking a realistic look at your situation.
Get a mortgage pre-approval to see how much money you could qualify for. Or estimate on your own by calculating 35 per cent of your monthly income. Then, tour different show homes, looking at the things you like and asking the sales agents how much those things cost. Remember, the show homes often have upgrades that make the home significantly more than the “Starting at…” prices. Compare apples-to-apples pricing on the home that includes all of your needs and wants. Builders often have different standards for what counts as an upgrade and what comes standard in the home. For example, one builder may include gas fireplaces where another builder may charge extra.
Once you know how much the home you want will really cost and how much you’re likely to qualify for, you can plan.
If the home you're considering is out of your price range, look into ways that you could make it affordable. For instance, vinyl tiles might mimic the look of the expensive stone tiles you want; laminate could look like hardwood. Spending a year or two saving up more for a down payment could put you in a better position.
You can build the home you want and need with proper planning. Carefully consider all of your options as you make your plans, and you’re sure to make your dream home a reality. For more help narrowing down your needs and wants, take a look at our handy Needs. vs. Wants Checklist!
