Goldilocks: Finding the house that's just right

Everyone has a long list of what they'd like to see in their future home. But the market is tight, and it's important to make a smart decision prioritizing what will give you the best for your money and return on your investment.

Price is the most limiting factor of your search. A pre-approval letter will help you understand what the bank is willing to lend you. But there are additional costs associated with owning a home. you need to remember. Realtors may push you to stretch your budget; don't listen.

Location is everything. You want to avoid features that may limit your resale ability, like a nearby train or busy street. Also check the quality of nearby schools, even if you don't have children of age to use them. When it's time to sell, buyers might be interested.

Your size needs will fluctuate with time. Children come and go; you may start working remotely and need an office. But big costs. Include homes with large sq. footage but fewer bedrooms in your search. Some "bonus" rooms don't legally qualify as bedrooms and mean a $ deal.

But being the biggest is not always best. It's better to be the 'worst' or smallest house in the best neighborhood you can afford than being the biggest and best house in a lesser neighborhood. It goes back to location, and a great neighborhood will always beat size.

Be most flexible with style. Charming craftsman or cool modern homes are always in vogue. Late 80s to mid-00s are the ugly redheaded step child. But many designers have done wonders 'deMcMansioning' these overdone contractor specials. Their lack of style is money saved.

Charming older homes might be more interesting aesthetically, but be sure to find something structurally sound. Countertops can be changed. Landscaping and light fixtures do wonders. Foundation issues can sink you. And insurance usually doesn't pay for foundation problems.

Buyers often have a laundry list of things they want and can be sorely disappointed when they realize it's out of reach. It's important to be clear-headed and remember what's most important before finding yourself with a beautiful old victorian ...abutting a four lane highway.