How to look for a house when you’re not sure how you’ll use it
How to look for a house when you’re not sure how you will use it.
I was showing a house to a couple just last week who described a property they found online as absolutely perfect and exactly what they were hoping to find, but said it was too big for a summer home.
I was surprised because when they called, they said they were looking for a summer house but were mindful that they may decide to relocate and wanted a large year-round home with rooms for their children and parents and plenty of places to work. Noticing my look of bewilderment, they quickly said yes, they anticipated needing all this space ... but they did not want such a large house in case it ended up being just for the two of them.
This is not as unusual as you’d think.
Before the pandemic, customers came to me looking for a summer home. Or they came looking to relocate to a new primary residence. Or they wanted help finding a rental property. But now, so many don’t know what they want, because they can’t predict what happens next. They don’t know how they’ll actually use the house, and that means they want a house (in their price range, of course) that satisfies criteria for multiple types of properties at once.
What happens if their summer house is no longer enough? What if they have to live, work, and study at home full-time, or this pandemic lasts for years? What if mom and dad also need to get away? Or if their married daughter has a second set of twins? Or worse, what if no one joins us, and what if one of us dies? The house will be way too big for just one person!
If you want to buy, you need to start with a critical question.
If you’re currently in this situation — you want to buy a house in the Hamptons but you’re really not sure how you’ll be using it in the future — the first thing you need to know is that no matter your means, no single house will check all the boxes.
I recommend starting your search by answering an important question. In this property, what is most important to you: price, location, or amenities? If your budget is immovable, you’ll need to restrict your search to houses within that price range. If it’s location, you’ll need to accept the pros and cons that come with location (like recognizing an easy walk to the ocean may not be possible given the budget). If it’s amenities — you want a pool, garage, five bedrooms, and/or tennis court — you shouldn’t spend time looking at homes that do not or cannot accommodate those needs.
Then, it’s time to create two lists. The first list is what you absolutely must have. The second is what you’d like to have but are willing to compromise on. These lists are going to dictate the homes you seriously consider, based on the decisions you’ve already made.
Remember that the home you buy today isn’t necessarily the home you’ll use forever. If you buy a little cottage and decide to use it as your primary residence, you can put on an extension (as long as you check the rules when you buy!). If you buy a primary residence but decide you’d rather not use it that way, you can sell it and buy something else. You can change offices to guest rooms and back again; you can convert the basement gym to a TV room or just use it for storage.
Once you’ve set your priorities, you need a plan
As with all important decisions, the best place to start is in your head. Have a plan just as you would with a business, because after all, buying real estate is a big (albeit personal) business decision. Identify why you want a home, and if not your primary residence, how you plan to use it. Confer with the other stakeholders and discuss options, wishes, and budget. You and the other decision-makers may not have the same taste and may disagree about needed features on the compromise list, but you should be lined up on budget and the must-have amenities.
Planning before the boots-on-the-ground home shopping includes deciding how you will pay for the purchase, talking with mortgage lenders and financial advisors. If the purchase involves the sale of other real estate, have a current assessment of its value.
Looking at real estate, especially in a luxury resort area, can be a good way to learn about neighborhoods, prices, and style trends. While it has never been easy to see many homes, Covid made it much harder. In ordinary times, going to open houses is an option, as is looking in many different locations with agents, and now new technology has made it possible to cover a lot of territory in-depth and safely without actually going inside a home.
And if you really can’t picture what your life would be like in the Hamptons or if everyone is not in agreement: Rent while you figure it out. I know some people won’t rent because they feel like it’s throwing money away but making a purchase you regret can have that same effect.
Everything is more complicated now, in the time of Covid, and buying a house is no exception.