|Are You Buying a House or a Home?
As you read and study about buying real
estate, you will often find the words "house" and "home" used
interchangeably. There is a huge difference between a house and
A house can be a place to eat, sleep, park your car, and put all
your "stuff" (including other family members). It is a material
possession and an investment. A home is where you feel
comfortable, warm, safe, and protected.
A home is where you live.
A house is something you buy logically. A home is an emotional
purchase. When buying real estate you have to balance your
emotional wants and your logical needs because there will almost
certainly be a time when the two conflict.
For example, you may want a house with a view, but the payment
is higher than you feel comfortable with on a thirty-year fixed
What do you do?
Purchase the house anyway and budget more carefully for the next
few years? Buy the same house without the view and get it
cheaper? Make a larger down payment by borrowing from your 401K
or family members, so you get a lower payment? Get an adjustable
rate mortgage with a smaller payment instead of a fixed rate
loan? Or buy a smaller house and still get the view?
When viewing the house, most people look at it emotionally and
envision it as a safe, happy, comfortable home. Later, when
making the offer or filling out a mortgage application, your
logic may begin to kick in, instead. That's when "buyer's
remorse" may come up, but...that's a different article.
The trick in buying real estate is to view all decisions with
both a logical perspective and an emotional perspective. If a
situation presents itself that requires a trade-off, decide on
whether there is a huge conflict or a small one. Logic should
win the big conflicts, but emotion should always be a factor,
even winning the small ones.
You will find yourself owning a warm, happy, safe home – and an
investment for the future at a price you are willing to pay.