Utilizing the Magic of Compromise to Discover and Purchase Your Dream Home in the 2024 Market

When my newly married daughter recently asked me for help in finding just the right draperies for their living room, I suggested that we choose a style of print and the color palette. After a few quick clicks on the internet, I shared about 10 design suggestions. And just like that, my daughter exclaimed, "That's the one! I knew it as soon as I saw it!"

This feeling of excitement and a sense of "knowing" is not much different when my real estate clients find their dream home. There is no convincing a homebuyer that, in my daughter's words, "this is the one". You just know. Buyers know when they have found the home that is right for them. However, this might be an over-simplification.

If you are planning to purchase a home in the highly competitive 2024 market, it is important to accelerate getting to that moment of discovery when your heart says, "you have found the one! " Gather your favorite beverage and as I like to say, "head to your comfy chair". This article is for you.

Your Dream Home - Or is it?

Buying a home is a journey. It takes time. To make the process more efficient, you will want to "begin with the end in mind". If you don't take the time upfront to identify and clarify what you are looking for, it will be extremely hard to know when you find your right home. In fact, it might just pass you by! The more homes you see, the more they can start to all blur together. And identifying what you are looking for, is a process unto itself.

If you are a first-time homebuyer, this initial stage of the home buying journey is crucial. Why? Because many first-time homebuyers are not readily familiar with the extensive list of questions to ask about the house they want, the lifestyle they envision, and the community that resonates with them. There are multiple layers to consider when clarifying what is important to you in your new home. Having an expert realtor at your side will ensure that you're on the right path to begin your house hunting journey.

As the 2024 real estate market gets underway, homes will be coming onto the market every week. And because homes do not come onto the market all at once, you will need to evaluate each home with perhaps no immediate comparison. Comparison house shopping can be hard to do when there is only a handful of homes on the market. This is why you need a clear understanding of the home search criteria that is most important to you. As a seasoned realtor, I often advise my buyer clients that there is almost no "perfect" home on the market. The home that is right for you will most likely come with compromises. Are you wondering, "How is this possible?" Let me explain.

How Compromises are Magical to the Home Buying Process

The moment you get from behind your computer (or detached from your phone) and see a home for sale in-person, you are initiating your home buying journey. A typical response to the home you see is often "I like it" or "I don't like it". Embedded in each of these polarizing answers are actually layers and layers of personal judgements about the house, the neighborhood, and of course, the price. You might like the house, but feel the price is too high. Or you like the house, but you're simply not "wowed" by it, feeling that it needs too much work. Alternatively, you may love the house, and feel it is reasonably priced, but the location just doesn't work for you. Location might be a concern to some buyers. For example, location could be a deal-breaker if the property borders a cemetery, railroad tracks, on a busy road, etc. With a myriad of potential scenarios, it is no wonder that some home buyers get exhausted after a couple of months!

To minimize buyer fatigue, I frequently recommend to my clients that they give serious consideration to what they can be flexible about. In other words, what they are willing to compromise on. And if the home buyer is a couple, each one needs to make their own list. As you can imagine, what is a "compromise" for one person, might be a "must have" for the other person. Let's take a quick look into what home buyers might be open to compromising on.

Dream Home Compromises - The Short List for Home Buyers

Amid the "tight inventory squeeze", here is a list (in no particular order) of some of the potential compromises home buyers might want to consider.

1. Garage. Instead of a 2 car garage, perhaps a one-car garage might work. If you were seeking an attached garage, maybe you're okay with a detached garage.

2. Fenced-in Backyard. If you are moving to the suburbs and want a backyard for your dog, maybe your dream home doesn't come with a fenced-in yard. There are many types of fences that you could add to the property once you are moved in.

3. An Open Floor Plan. If the dream home that you can afford is not a new construction or gut-renovated home, it may be challenging to find a home with an open floor plan layout. Many of the existing homes across the country are older, perhaps decades older. Here in Northern New Jersey, we see a number of homes dating back to the 1920's when the open layout was not as common as it is today. If you find a house for sale that has a wall that can be removed to create a more open room flow, this might be an alternative option worth exploring. It is best to bring in an expert, such as an architect or contractor, for their professional advice.

4. An En-suite Bedroom. If you had your heart set on a primary bedroom with an attached bathroom, this might be a deal breaker and non-negotiable for you. But what if the bathroom is small, or dated? Might you be open to a compromise? Could you be flexible and look at homes that do not have an en-suite bedroom? Perhaps there is a way to add a private bathroom in the future. This would enable you to customize the design to a style that you like.

5. Number of Bedrooms. With the rise in remote working from home since the Covid-19 pandemic, many home buyers are looking for an additional bedroom to use as a home office. However, did you know that in real estate, the list price of most homes increases substantially with the addition of each bedroom? In Northern New Jersey, this can mean the difference of a 4-bedroom home costing an additional $50,000 (or $100,000 or more) compared to a 3-bedroom home. Some of my buyers who were holding firm on wanting 4 bedrooms relaxed this requirement and went with a 3-bedroom home instead. For example, one couple moving out of NYC to New Jersey wanted 4 bedrooms and decided to go instead with a home that had 3 bedrooms. This home offered the opportunity to expand in a few years, which they did once their second baby was born. Another buyer client wanted 4 bedrooms and found instead a 3-bedroom home with a great den space that worked beautifully for an at-home office.

6. Kitchen Center Island. The kitchen has been long known as the "heart" of the home. With the rise in cooking more healthy and nutritious meals at home, many home buyers are seeking a kitchen that is spacious enough for two foodies. This often translates to a having a center island where food preparation is often easier. Sometimes there is an alternative solution when the home you love is missing a center island. Perhaps there is plenty of counter space, or possibly an eat-in kitchen table can double as a food prep area.

7. Style of Home. When it comes to compromises, the style of home is something that many home buyers become increasingly flexible about as the home search process progresses. It is not uncommon, for example, for buyers who initially decide they want to live in a colonial-style home to end up being open to various styles of homes. Similarly, I recall one of my clients being very clear that they did not want to live in a ranch-style (one floor living) home only to find out that they loved it!

8. In-town Location. When buyers were fleeing the urban areas during the Covid-19 pandemic, many were looking for an "in-town" location in the suburbs. For these buyers, the ability to stroll into town for an ice cream cone or a cup of coffee was a way to maintain the urban vibe that they were giving up when leaving the city. With the current under-supply of homes for sale, some buyers are re-thinking the importance of a walk-to-everything location.

9. The Town. At the start of the house hunting journey, most buyers tend to have a general idea as to where they want to live. Perhaps they have friends or relatives in a particular town, or they are looking at towns based primarily on school rankings and/or an easy commute to work. If buyers widen their home search to include a few additional towns, they might find that their dream home is just a little further away. I'm currently working with buyers who are at the beginning of their home search and are very clear about the towns they will move to. So while they might not be flexible about the town, they are flexible on other factors, such as the style of home.

10. Price. Prior to looking at homes in-person, home buyers often have a price range in mind that they are comfortable with, especially if they have had a conversation with a potential mortgage lender. For some buyers, the initial price range is just a starting point. When buyers choose to pass on homes once they come onto the market, sometimes it is because of a "disconnect" between the list price and the value that they perceive the home offers to them. For example, a 3-bedroom home listed at $700,000 in Northern New Jersey might not deliver the value expected by a potential buyer if there is too much updating needed. The result is a "disconnect" in the mind of the buyer. It is possible that the home the buyer is looking for that doesn't require too much work is at a higher price point. It is not uncommon for buyers to begin with an initial price range and later in the house hunting process to increase their price range.

The 80/10/10 Principle

If you are looking to purchase a home in 2024, you may be wondering what "compromises" you might be willing to make. This is especially important when the housing market is hyper-competitive and inventory is sparse. To help guide you, I want to share with you the 80/10/10 principle.

When I am working with my buyer clients, I advise that instead of seeking the elusive "perfect" home, to consider a property that fulfills about 80 percent of their criteria. The next step is to explore potential changes or improvements that could elevate the home to 90 percent, whether immediately or in the future. These enhancements, for example, might involve updates to the bathroom, finishing the basement, or reconfiguring the layout to create more open space. And the other 10 percent? This represents the aspects of the home that cannot be altered. And if you can embrace these unchangeable features, such as a busy road or corner location, then that home may indeed become your dream home!

Accelerating the Journey to Your Dream Home

By remaining flexible and open to possibilities, you can increase your chances of finding a home that is truly meant for you. Finding and purchasing your dream home in today's super hot market requires being mentally and emotionally prepared to make intelligent compromises. This can save you valuable time in getting to the offer stage and securing the home before it disappears from the market. By utilizing the magic of compromise, it can happen sooner than you think. And then it will be time to pick out the perfect draperies for your new home!

How Ready are You for the 2024 Spring Market?

As a courtesy for a limited time, I am offering a complimentary "Get Ready, Get Set, Go!" home buyer preparation consultation. To reserve your individual session, simply click on the link to register:

Complimentary "Get Ready, Get Set, Go!" Consultation with Suzy Minken

Did you miss my previous article? Simply click on the hyperlink: Above and Beyond Opening Doors: The Multi-Faceted "Rockstar" Realtor for Home Buyers

Got questions? Reach out to me at 908-239-9261 or via email: [email protected]. I've got you covered from coast to coast, working alongside my C?MPASS colleagues, as needed, in over 300 offices around the country. My mission is to help everyone find their place in the world

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Utilizing the Magic of Compromise to Discover and Purchase Your Dream Home in the 2024 Market

February 2024

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