As we work with people looking to buy a California home, we find that people often want to buy the largest home they can afford. In some cases, this makes sense. For example, if a family is planning to expand or bring older family members into the home, then it makes sense to choose a home to grow into.
In other cases, one of the best tips to buyers we can provide is to buy a home based on what they need – not just what they can afford. Remember that the upfront cost of a home is just part of the long-term cost. Keep reading to learn more about why buying smaller may suit you better, then contact Berkshire Hathaway HomeServices at (310) 373-0021 to get started with the home-buying process.
More Than the Mortgage is Higher
Yes, you will have a higher mortgage if you buy a larger home – in most cases. However, this is not the end of paying more. A larger home also generally comes with higher closing costs, utility costs, renovation costs, furnishing costs, property taxes, repair and maintenance costs, homeowner’s insurance premiums, and other higher costs. Take the long-term cost into consideration when buying a home.
You Are Not Guaranteed a Better Investment on a Bigger Home
One of the reasons people often decide to invest in a larger home is because they assume that it will be a better investment. Their idea is this: If investing some money in real estate is a good investment, then investing more money in real estate is a better investment. This is not always the case. As is true of any other investment, you will need to look at the potential return on your investment.
If you buy a very lager home, then it may be hard to sell it as fewer people buy larger homes than an average-sized family home. If you buy a large home in a neighborhood that is otherwise home to mostly smaller houses, then it can be even harder to sell. As buyers consider energy efficiency and their home’s environmental impact, larger homes may be less attractive in the future.
Ego Should Not Be a Factor in Purchasing a Home
Many people do not even realize it until they take a moment to consider, but ego is too often a driving-force when buying a home. They may want the world to see how successful they are and may associate a larger house with that success.
If you truly want a large home and you can afford it, then we are happy to help you find the perfect option. However, if you are trying to impress your family, neighbors and friends, you may find yourself less likely to make a wise investment. Contact Berkshire Hathaway HomeServices at (310) 373-0021 and we can begin the process right away.