A house is where you eat, sleep, park your car, and put all your 'stuff', including other family members and pets.  A house is a material possession and an investment.  A home is where you feel comfortable, warm, safe, and protected. A home is where you live.

A house is something you buy logically. A home is an emotional purchase. When buying real estate you have to balance your emotional wants and your logical needs because there will almost certainly be a time when the two conflict.

You may want a house with a view. But maybe the payment is higher than you feel comfortable with on a thirty-year fixed rate mortgage. You can purchase the house anyway and budget more carefully for the next few years. Or you can buy the same house without the view and possibly get it cheaper. Can you make a larger down payment by borrowing from your 401K or family members, thereby getting a lower monthly payment? How about getting an adjustable rate mortgage with a smaller payment at the front instead of a fixed rate loan? Or buy a smaller house and still get the view?

When looking at houses, most people look with their emotions and envision it as a safe, happy, comfortable home. Later, when making the offer or filling out a mortgage application, your logic may begin to kick in instead.

When buying real estate, it is critical that you view all decisions with both a logical perspective and an emotional perspective. If a situation presents itself that requires a trade-off, decide on whether there is a huge conflict or a small one. Logic should win the big conflicts, but emotion should always be a factor, even winning the small ones.

You will find yourself owning a warm, happy, safe home - and an investment for the future at a price you are willing and able to pay. 

Copyright 2004 PropertySource Network