Buy for Children Before You Have ThemSeptember 19, 2019
If you donrsquo;t have children, but you and your partner share the solid conviction that your lives will revolve around children in the near future, consider buying a home as if you now have children.
Thenbsp; ldquo;2019 Moving With Kidsrdquo; Report, >
How would pretending to yourself that you already have children change how you approach your home search
According to the ldquo;Moving Withrdquo; Report, having children impacts buying decisions in many ways. Even before you have children, you may benefit from buying as if you do, for instance:
bull; The Importance of Neighborhood
Fifty-three percent of buyers who have children evaluate neighborhoods based on the quality of school districts. Half of these buyers select a neighborhood based on the convenience to schools. The value and spirit of a neighborhood revolves around its schools, so yoursquo;d buy into the heart of the neighborhood from the start. Yoursquo;ll benefit on resale as properties near preferred schools usually carry higher market values.
bull; Home Size
Buyers with children, tended to purchase ldquo;larger homes of 2,110 square feet in size with 4 bedrooms and 2 full bathrooms.rdquo; If you buy a slightly larger home now, yoursquo;ll save the cost and inconvenience of moving again when the children arrive. In the meantime, the extra rooms could be used as a home office, a workroom, a distribution center for your online business, or short-term Airbnb rentals to generate more income. Use this additional income to pay down your mortgage more quickly and benefit financially in many ways.
bull; Limitations >
Twenty-six percent of buyers with children, reported the financial pressure of child-care expenses delayed home buying. This ongoing financial burden necessitated compromises regarding ldquo;the condition and size of the home, followed by price, lot size, and >
Savvy buyers with children look at a potential home purchase and ask themselves and their real estate professional, ldquo;Why might we want to sell this home in the future?rdquo; That is, what location or design factors might challenge a growing family in the future?
bull; If keeping children within the same school district and community throughout their schooling is a vital concern, the feasibility of long-term ownership should be considered before you buy.
bull; If a move in the future would be practical or preferred for a variety of reasons, the home may only need to suit the children during their early years.
The ldquo;Moving Withrdquo; Report revealed that 24 percent of owners with children under 18 sold because their home was too small. Other reasons for selling included job >
bull; Almost a quarter of buyers with children reportedly sold their home ldquo;very urgently,rdquo; compared to 14 percent of child-less buyers.
bull; Twenty-one percent of sellers with children requested help from their real estate professional to sell within a specific timeframe, 20 percent wanted skilled input to price their home, and 19 percent needed assistance with marketing the home to potential buyers.
With your real estate professional, review what typical buyers with children seek out in the areas yoursquo;re searching. How are the differences between those choices and your ldquo;no children nowrdquo; search significant to your overall results, financial and otherwise?
The benefits of buying now with your family in mind versus buying something smaller now and then selling and buying a larger property before the children start school, may include cost savings, convenience, and minimized disruption.
bull; In some areas, real estate prices rise steadily, so what you can afford today may be out of reach in three or four years.
bull; The sale of a home and purchase of a new one within a few years of the initial buy may be an expensive alternative if the value of the current home has not appreciated much and the next homersquo;s value has gone up significantly.
These are all very couple-specific decisions:
bull; Use the stats to get you thinking not to restrict your search.
bull; Your real estate professional will help you thoroughly investigate your options.
bull; Your vision of your future and your sense of >
You may want to read more on this subject to clarify the differences between your ldquo;pre-childrenrdquo; thinking and what yoursquo;ll be considering soon regarding full-on family-home purchasing. The buyer profiles in NARs Buyer Bios: Profiles of Recent Home Buyers and Sellers may spark some interesting discussions.
More Savvy Buyer articles by PJ Wade:
bull; ldquo;Home Buyer Assumptions Are Expensiverdquo;
bull; ldquo;Home Buyers: Seven Insights Into Confident Decision Makingrdquo;
bull; ldquo;Three Things Home Buyers Should Never Dordquo;