3 Signs You’re Trying to Offer the Wrong Home

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Talk about making a big mistake.

Key Point

• In today’s tight housing market, you may feel compelled to compromise as a buyer.
• Being flexible is good, but sometimes you stray too far from what you want.
• If you don’t like the neighborhood, or if it takes a lot of work to get the home to be what you want or need, it may not be for you.

Today’s housing market is difficult for buyers. Not only are housing prices still very high, but real estate inventory is very limited. This means that buyers are increasingly having to compromise to buy their place.

It’s one thing to be flexible in the home-hunting process. That could mean agreeing to a house that’s slightly smaller than what you wanted, or buying a house that needs a few more updates than you’d hoped for.

but there teeth Such as compromising too much when buying a house. And if any of these signs apply to you, it means you may not want to make an offer on the property you’re looking for.

1. You’re increasing your budget to make the purchase happen

Even if you set your homebuying budget at $350,000, you can find a truly ideal property that the seller won’t settle for $360,000. In those situations, you might argue that it’s worth paying a little extra for a home.

But if your starting budget is $350,000, you’re not going to stretch it to $400,000 or $425,000. Doing so could mean signing up for a world of financial stress.

As a general rule, monthly housing costs, including mortgage payments, property taxes and insurance, should not exceed 30% of your take home. If going over your original homebuying budget means going over that 30% mark, you can let go of the home you’re looking for and get a more affordable home.

2. Signing up for Repair World

Buying a house that needs work is common. But there’s a difference between having to make some minor fixes and cosmetic changes, and having to tear down the house, upgrade all the electrical wiring, and replace major appliances. If you’re looking at the latter scenario, you may end up applying for more work and expenses than you can manage.

3. Not in desired area

If you buy a house with an old kitchen, you can always renovate it if your budget allows. Also, if he buys a house with only one bathroom, he might be able to add another one in a year or two so that the family can be more comfortable.

But if you buy a house in a neighborhood you’re not a fan of, no amount of renovation will change that. Likewise, if you have children and want to live near a playground, you shouldn’t bid on a house whose closest park is three miles away.

Flexibility is key in today’s tight housing market. But don’t take that flexibility too far. Otherwise, you may regret buying a home.