When it comes to homes, bigger isn’t always better. For one, bigger homes obviously cost more, and oversized houses also can be more difficult to sell. As such, you’ll want a home that’s neither too big nor too small. But how do you strike that balance? Here, Realtor.com suggests five questions to ask yourself that will help you determine how much space you really need.
1. Is this my ‘forever’ home, or is ‘right now’ good enough?
Although you can’t predict the future, it is possible to evaluate the likelihood you might be moving in the coming years. If so, then maybe you don’t need to buy that perfect “forever home” where you’ll grow old; maybe a “right now” home is good enough. There’s a common perception that you should be searching for your forever home, and that pressure to find a place that has all of the space you might ever need often leads buyers to purchase a home that might be too large. It’s alright to know that you’ll only live in a home for the next five or six years, and to buy a home that will serve your needs during that time. You always can re-evaluate and upgrade to a bigger space down the road.
2. What will my income look like later?
If you’re early in your career, odds are that your income will increase during the coming years. Or, if you’re reaching the end of your career, you might be looking at flattened or declining income. In either case, it’s never a good idea to get a mortgage at the max of what you can afford; it’s better to go small and have some wiggle room. A mortgage on a home that is a size too large is most likely to be your biggest burden, and a hard one to overcome. Happiness is often one size smaller than your dream home. That way, you can enjoy your home without dreading your monthly mortgage payment. Also, remember more space means more time and money spent on upkeep and maintenance, more rooms to fill with furniture, and higher utility bills to heat and cool the home. Any future improvement projects, such as installing new floors or replacing windows, also will cost more if the space is larger.
3. What are my priorities?
Another question to consider is what you’ll use all that space for—and be honest: Although you might dream of hosting epic dinner parties in that big formal dining room, will you really? Can you say with certainty that your in-laws will visit you during the holidays and need a guest bedroom to sleep in, or might they be just as comfortable in a nearby hotel? Aside from justifying what you’ll use each space for, ask yourself what you’re giving up. If you dream of having a secret travel fund so you can see the world, that may be possible only with a smaller mortgage and house. Or, perhaps you value things other than space, such as a high-ranked school district or walkable location. Make sure to factor in those variables a well, and make sure you aren’t sacrificing them for space you don’t need.
4. How much space do I want from my own family members?
If you absolutely must have privacy to work in a home office or relax in your man cave, then that extra square footage may be well worth the money. But if you’re more the type who loves having their family members nearby, a large home gives people plenty of alone time…sometimes too much.
5. Does this home feel spacious even if it doesn’t have much space?
Keep in mind that even small homes can feel spacious if they have an open floor plan and ample light. Meanwhile, large homes can feel cramped if they’re poorly laid out or dark. When perusing real estate listings, know that the little number next to square footage sometimes can be deceiving. Features such as a long hallway may increase the total, but they are spaces you pass through, not a true destination within the home. So, instead of honing in on total square footage, focus on the size of individual rooms where you envision you and your family spending the majority of your time.