In a perfect world, you’d be able to buy the perfect home in the perfect neighborhood at the perfect price.
But we live in reality, and the truth is, with house prices still on the rise, many have chosen to focus on landing in a home, regardless of its location. After all, what's another 30 minutes away in another direction?
While this may seem like a compromise, many real estate agents agree that it’s actually one you’re likely to regret down the road. In fact, their advice to buyers right now is a spin on an often-heard idiom: Marry the neighborhood, date the house.
Why the neighborhood often matters more than the house
As a buyer, knowing where you want to live is just as important as knowing how much you can afford. Agents caution, however, that if compromises are necessary, exploring different housing options within a neighborhood you love will likely make you happier in the long run.
“If budget is an issue, I often suggest you search for the ugliest house in a great neighborhood because you’ll have the greatest opportunity to improve on the property, which should substantially increase the value and enhance your quality of life,” says Deborah Vance, real estate agent at Radiant Realty in San Diego.
“The neighborhood absolutely matters more than the house. In many cases, buyers would rather have an outdated home in a nice neighborhood than a nice home in a not-so-great area,” says Nick Booth, real estate agent at Utah Real Estate in Salt Lake City.
The reasoning is sound: You can change almost every aspect of your home—paint color, kitchen, and even the floor plan in some cases. But your neighborhood is permanent, shaping everything from your daily routine and sense of community to your children’s education and long-term finances.
“A great home in the wrong place will never feel right, but an older home in the right neighborhood is more likely to feel like home,” says Booth.
He adds that recently, many of his clients in Salt Lake City have bought homes farther out of the valley so they can get more house or more land for their money. However, once the reality of their longer commute hits, many end up regretting it.
“I’ve had clients who loved their home but hated spending over an hour in traffic every day to get to work or social events back in the city. It’s hard to put a price on your time and your quality of life,” explains Booth.
As you shop for a home, remember that a neighborhood isn’t just where you live. It’s about how you live.
How agents are helping buyers get the neighborhood they want
When Booth works with buyers, especially those coming from out of state, he likes to spend time showing them different neighborhoods and cities just to see what feels right for them.
“I can usually get a sense of someone’s lifestyle pretty quickly from our conversations. I learn what they like to do, how they spend their weekends, and how far they’re willing to drive to work,” explains Booth. From there, he’ll recommend a few areas that fit their lifestyle.
Vance has her own unique strategy—she sends postcards to homeowners in a buyer’s preferred neighborhood.
“I let every homeowner know that I have a potential buyer for their home. This way, the homeowner who may want to sell can avoid the 'For Sale' sign and people trampling through their property,” says Vance.
Buyers love this strategy because they may be able to get a home they love with no competition. It’s a win-win for everyone involved.
"Understand that there’s always a way to strategize based on what matters most to you,” adds Booth.
Since affordability is still a huge roadblock, Booth encourages his clients to look at a smaller home or a fixer-upper in their ideal area, and think more about building equity and building up, just so they can get a foot in the door of their dream neighborhood.
Balancing compromises and priorities
As with anything in life, buying a home is all about balance. When looking for a property, think about where you want or need to be. Then, you can work with a real estate agent to home in on what types of homes are available to see what’s realistic.
“It’s really common for people to say they want to be within 20 minutes of work but also want a big yard and plenty of space. That narrows things down to just a few neighborhoods that fit both criteria,” explains Booth.
From there, it’s up to you to decide what matters more: being closer to work or having more land. Booth has found that for most people, location wins. You can change just about anything else, but you can’t move your house to a new neighborhood.
If you’re hesitant about location, there’s a good chance you’ll regret it down the road.
You can paint the walls, replace the lighting, remodel the kitchen, and make it your own. However, if you buy in a location that doesn’t fit your lifestyle, that’s a much harder thing to fix.
"I’ve seen buyers overlook busy streets, nearby schools with loud football games every Friday night, or proximity to big venues that bring in traffic and noise, all because they were focused on the home itself. Those things start to bother people later on,” says Booth.
Your goal should be to think beyond the four walls. Ask yourself, "Will I love driving home here? Will I love my mornings here? Will I love spending my weekends in this area?" If the answer is no, it’s probably not the right fit.
Also, keep in mind that no real estate agent is allowed to steer you toward or away from a neighborhood, so it’s up to you to make the call.
“All we can do is advise you to check out an area, but it’s ultimately your choice,” explains Vance.
Separating needs from wants
Most homebuyers are willing to be flexible about a lot of things, but there are always a few must-haves.
“For a family of five, maybe that’s four bedrooms, a primary bath with a separate shower, and at least two additional full baths. Those are needs, not wants,” explains Booth.
Once you home in on your needs, consider your wants: a big kitchen for entertaining, a gas fireplace, or a pool in the backyard, for example. If you separate your needs and wants early on, you’ll be able to keep everything in perspective.
“When you find a home that meets your needs and checks the boxes that truly matter, there’s a really good chance you’ll be happy there. Everything else will just be icing on the cake,” adds Booth.
