Buying a Home in a Less-than-ideal Neighbourhood
Imagine you’ve found the perfect home It has everything you want — type, size number of bedrooms etc. It even has a great view. The only problem is the neighbourhood. It ‘s not exactly what you had in mind.
Should you still make an offer?
That’s a tricky question. On the one hand, the neighbourhood will have a big impact on your lifestyle and the enjoyment of your new home. On the other hand, you don’t want to pass up on a home that may turn out to be a terrific buy.
So what do you do?
The first step is to make a list of why the neighbourhood falls short for you. Is it too close to a busy shopping area? Is it missing a local playground for the kids? Will the commute from the area be difficult?
Then, challenge your assumptions. Maybe the commute won’t be nearly as difficult as you thought it might be. Test it out. Maybe there is a playground nearby; you Just didn’t come across it when scouting the area.
Get the facts.
Next, think about characteristics of the area that might compensate for what it’s lacking. For example, it might not have a playground, but instead have pleasant walking trails. It might be a bit noisy at times, but also have a vibrant community, with friendly new neighbours to meet.
Finally, ask yourself “Can I live with these shortcomings? Can I get what’s lacking somewhere else close by?” For example, the neighbourhood might be too urban for your tastes, but there might be a beautiful wooded area within easy driving distance.
Once you’ve gone through this process, the decision of whether to buy or pass will be easier — maybe even obvious.
Should You Pay More for the Home You Want?
Say you have identified the characteristics of the perfect home and established a budget for your search. Ideally, you want to find that home within that price range. But, what if you come across a property for sale that is perfect in almost every way – except it’s over-the-budget price?
Do you walk away? That depends on a number of factors:
- Can you afford the higher price? Can you get approved for a higher mortgage and carry it comfortably?
- How likely are you to find a similar property for a lower price?
- What impact will this home have on your lifestyle? In other words, on a scale of 1 to 10, what is the “I’m going to love living here” factor?
- Does the property have any unique features you’ll have a tough time finding in another home? For example, does it have an awesome wraparound backyard deck?
- What is the likelihood that a lower price can be negotiated?
- What’s the investment potential of the property? Is this the type of desirable home that will probably go up in value substantially over the years?
