What’s Your Goal For The Real Estate?

First, ask yourself: Why am I making this move or purchase?

Developing a clear, detailed answer to that question will help you answer a host of other questions to identify real estate or property that meets your needs.

• Are there geographic limits?
• What specific features do you need?
• What features do you want but can be flexible about?
• What resources do you need (or want) to be close to?
• How much time and energy are you willing and able to put into maintaining the property?
• For an investment property—are you looking for current income,  long-term gain or both?
• How should the property be owned?

How Much Do You Want To Spend?

There is a lot more to consider than just the final purchase price. Answer all these expense-related questions before narrowing down your ideal property:

• Are you paying cash, or will you finance the purchase?
• If you are financing, what type of loan should you use? And what loan term makes the most sense?
  • What will your monthly payment be?
  • How long do you expect to own the property?
  • Are there anticipated lifestyle changes that might affect how comfortable you are with the monthly payment?
  • Do you want a payment plan that creates certainty? Do you want one that helps you stay disciplined or gives you greater flexibility?
• How much money do you need upfront? And where will it come from?
  • How much will you need for a downpayment?
  • Does it make sense to pay “points” on your loan?
  • What other immediate or short-term costs will you have? (Consider things like fees, moving and professional expenses and immediate repairs or renovations.)
• What ongoing costs will you have associated with the property?
  • What are the real estate taxes?
  • How much will it cost to insure the property?
  • How much maintenance is the property likely to need?
  • Are there HOA dues or other fees associated with ownership?
• If this is a move, will it impact other expenses (e.g., commuting, cost of living, etc.)?