Top Homebuyer Tradeoffs

AAA

Your home affects every aspect of your life, from your financial stability to things you do in your free time. It's also probably the most expensive purchase you'll ever make. Yet it seems like you always have to sacrifice something when buying a home. Here are the tradeoffs that homebuyers commonly face.

Location

While location is key, people compromise on their ideal location all the time - they move further out into the suburbs even though they work in the city because they want a larger/newer/nicer house for a lower price, for example. Sometimes it's worth making a tradeoff on location to get something else you want.

Privacy

If you buy a home in a multi-unit building, your level of privacy will vary with the overall size and layout of the building, the quality of construction materials used, your unit's location in the building and the behavior of the community. In a single-family house, factors such as lot size, number of stories, fence height and vegetation can all impact the level of privacy. Homeowners who want to live near the heart of the city often trade privacy for location since urban areas tend to be more densely populated than suburban areas.

Dwelling Type

What kind of financial and time commitments can you put into maintaining the property? Do you want a backyard for parties or pets? Condos and townhomes can be more difficult to command top dollar for when you go to sell because there may be other units for sale that are identical to or very similar to yours. Since condos and townhomes are often cheaper than houses, first-time homebuyers commonly make the tradeoff of choosing the former over the latter.

Price

A better location and nicer amenities will increase a home's price. If you're not wealthy, you'll have to sacrifice some of the things you want to stay within your budget. Be realistic about what you can get for your dollar and remember to rely on your own calculations of what you can afford, not your lender's estimate.
  1. No results found.
Related Articles
  1. Investing

    10 Worst First-Time Homebuyer Mistakes

    These errors could wind up costing you more than the coveted key to your first home.
  2. Investing

    Top Tips For First-Time Home Buyers

    Follow this step-by-step guide to make your homeownership dreams a reality.
  3. Investing

    First-Time Homebuyer's Guide

    Buying a home for the first time can seem daunting. Learn the buying process & what to watch out for in order to be a successful first time home buyer.
  4. Managing Wealth

    Buying a House Before Selling Your Own: Risks and Considerations

    Learn more about the financial risks and worst case scenarios associated with buying a home before selling your current residence.
  5. Personal Finance

    7 Smart Steps Every New Homeowner Should Take

    Don't let the excitement of owning your own home lead you to make bad financial decisions.
  6. Investing

    6 Signs It's Time To Buy A House

    Are you ready to buy a home? Find out if it's the right time for you to enter the real estate market.
  7. Investing

    Are You Ready to Buy a House?

    There are a number of factors, aside from cost, that you should think about before buying a new house.
  8. Investing

    Top 8 House-Hunting Mistakes

    These common mistakes occur when you allow your emotions to take over.
  9. Insurance

    5 Mistakes to Avoid When Buying a New Home

    Don't make these common blunders on your way to buying a new home.
  10. Investing

    New Construction's Hidden Costs Can Burn Buyers

    Before you buy that brand-new home, read this first. There are some things you should know about.
Hot Definitions
  1. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  2. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  3. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
  4. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
  5. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions ...
  6. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
Trading Center