A house can be a place where you eat, sleep, park your car, and keep all your “stuff” (including other family members). It is a material possession as well as an investment. A home is a place with a comfortable atmosphere, where you feel warm, safe, and protected.
A home is where you live. A house is something you buy logically. A home is typically an emotional purchase. When you buy a real estate you have to keep your emotional wants and your logical needs balanced, as there will surely be a time when the two conflict.

Example

For instance, you may dream about a house with a view, but the payment is higher than you can comfortably manage with on a 30-year fixed rate mortgage. What can you do?
Purchase the house anyway and plan your budget more thoroughly for the next couple of years? Buy the same house without the view for a lower price? Make a larger down payment by borrowing from your 401K or family members, so you get a lower payment? Get an adjustable rate mortgage with a smaller payment instead of a fixed rate loan? Or buy a smaller house and still get the view?
When buying the house, most people look emotionally and perceive it as a safe and comfortable home. Later, when making the offer or filling out a mortgage application, your logic may begin to kick in, instead.

Balancing Act

When buying a real estate you should consider all decisions from both a logical and an emotional point of view. In a situation when a trade-off is needed, decide on whether the conflict is huge or small. Logic should be in favor in the big conflicts, but emotion should always be taken into account.