When you’re house hunting, budget is everything. It dictates how much home you can reasonably afford, and therefore which homes you look at.
After all, you don’t want to end up house poor or risk going into foreclosure because you couldn’t maintain your mortgage payments.
However, there are times when looking outside your budget does make sense. Here are six top reasons why you shouldn't be afraid to take a peek outside your price range.
1. You can’t find anything
In today's market, there's a lot of competition among buyers, especially in the lower price tier. In those cases, it makes sense to look up, and the difference might not change your financial situation by that much (make sure to confirm with your lender!)
2. Price isn’t the only factor
Ideally, you want to find a home within your desired price range, but staying under budget might not be as prudent as you might think.
For example, your kids may be in private schools, but if you move to the right school district, they can attend public schools, saving you thousands of dollars a year. Also, if you have to drive across town in bumper-to-bumper traffic for work or to shop, it might be worth it to pay more to save wear and tear on your vehicle and yourself.
3. You can learn a lot
Sometimes buyers have unrealistic expectations regarding move-in-ready properties in their price range.
4. You can see what might be in striking distance
If you find a home that is outside your range, there’s a chance that your agent can negotiate it down.
5. You may actually get a better deal
Sometimes, a home within your budget may not be as sweet of a deal as one that is supposedly out of range.
6. A higher amount might be totally manageable
There's no reason why you should try to live outside of your means; sticking to a budget is a smart money move. But it's important to put that budget into context.
For more information, go to Realtor.com
