5 Reasons to Consider Homes Outside Your Price Range – When you are looking for a new home, the budget is the main dictator. It limits how much home you afford and as such what homes you decide to look at and walkthrough. No one wants to pay more for a home than they can truly comfortably afford and end up struggling to make ends meet month to month, or worse go into foreclosure and lose the home while spending years recovering.
It is incredibly smart to have a detailed idea of your budget and know what you truly can afford. There are some instances when you might want to consider looking just above your budget. Here are 5 Reasons to Consider Homes Outside Your Price Range – Read on to find out.
When You Can’t Find Anything
Today’s housing market is highly competitive, especially in lower price tiers. In the case of a super competitive buyer’s market, it makes sense to look just above your max budget. If buyers are truly unhappy with what is available to them in their price range they can always consider stretching their upper limit with creative options like gathering the help of friends and family to help with down payment or co-signing.
When You Can Factor in Price Cuts from Other Areas
Ideally, you want to stay within that comfortable budget and not even get to the max point if you do not have to. Sometimes moving to a neighborhood with excellent public schools when your kids attend private ones could save you the money you need to purchase the house you love. Or moving closer to work and extra-curricular activities will save you gas, time, wear and tear on the car, and even peace of mind. These money-saving trade-offs just may be enough to afford the extra cost for the house.
You May Find a Home You Can Negotiate Down to Your Price Range
As mentioned earlier lower price tiers are more competitive. You may find that when reaching just above your price range there is less competition. Maybe a home has been sitting on the market for some time because it is for sale by owner or it may just be priced a tad high. In these cases, your agent may be able to negotiate the price into your affordable budget.
Taking a Fine Tooth Comb to the Finances Reveals the Price is Actually Manageable
There is absolutely no reason to go crazy and try and purchase a home that you in no way will be able to make payments on. If you consider adding just $10,000 to your budget, depending upon the area and what price that lands you in, you will only be adding about $55 more a month to your mortgage payment.
Taking a fine-tooth comb and cutting back in other places may find you those $55 dollars to have the home you truly want. As long as you are willing to cut back. You don’t want to make sacrifices in your daily routine and comforts that are going to make you miserable in the end.
Related: How to Make an Offer
You May Find a Better Deal
Sometimes paying just a little bit more affords you a move-in ready house instead of a house in need of a few updates and repairs. It may be worth the cost upfront to save the time and money those repairs would cost that might not ever get done. (and may cost you at re-sale)
For help finding just the right Los Angeles home, please contact me anytime!