Should you even be considering homes above your price range? And no, I don’t mean the difference between your ideal price and a multi-million dollar house on Camelback. I am talking about the home that is just outside of the budget you sent your realtor. s there any sense in dreaming a little bit bigger, or is it just a recipe for disappointment?
The short answer is “you should look.” You set that high limit on your budget for a reason. But sometimes, you can find yourself in a situation where the seller is motivated to accept a lower price, or your realtor can help spot a local market where there is some wiggle room for negotiations.
Here are some do’s and don’ts when considering homes outside your price range.
Do utilize stats in the area to do research. We compare the list prices with what homes nearby ended up selling for, which can help you determine if it’s worth it to look at the home outside your budget.
Don’t get attached and be disappointed if the seller refuses to come down on the price and the home is simply unaffordable for you.
Do understand if you are in a buyer’s market, where the odds are good that a seller is willing to negotiate, or a seller’s market, where you don’t have any bargaining power.
Don’t forget that we have experience determining the proper price range, and we are experts on what is a good deal versus what will be a waste of time to look at. Trust us to help you make the right decision.
Do look for situations where a seller is very motivated to sell. Sometimes sellers are in a hurry due to personal circumstances and may be more receptive to your offer.
Ultimately, it’s up to you to have a realistic mindset when looking at homes with price tags above your upper limits. It is uncommon that you’ll be able to “bargain down” a lot, especially in situations where the seller has no motivation to sell for any less than intended. Experienced agents have a nose for what will work and what won’t, so don’t force a showing or offer when you are advised strongly against it.
Are you considering buying a home? Click here to create a custom home search and we will set you up to receive as soon as they hit the market.