· Look for a different home type within the community, such as a smaller single family home, a town home or condominium. Decide if you can live with one less bedroom or other features on your list.
· Consult with a lender or a financial planner to discuss your options for increasing your budget. While no one should overspend on a home, you should recognize that going $10,000 above your price range when you’re financing your purchase with a 30-year fixed-rate loan will actually add only about $30 to your monthly payment.
· Lower your expectations about the condition of the home. While everyone prefers a move-in ready home, you can often get a better deal on a home that needs some cosmetic repairs. Be careful, though, to have a home inspection and to evaluate the structure of the home to see that it meets your needs. Moving walls and adding a bathroom are costly renovations, while painting and replacing appliances are more reasonable.
If you have your heart set on a specific home style or a home with a larger yard for your children or to garden, your compromise is more likely to be in the location. If you’re willing to commute farther or perhaps choose a home in a community next to the ‘hot’ neighborhood, you can often find a more affordable home that fulfills your wish list.
An experienced Realtor can help you determine when and how to compromise and should take the time to show you a variety of alternatives so you can make an informed decision about when to make an offer.
Think you might be ready to buy? Visit our newest addition, Doorsteps, to explore the home buying process at your own pace. On your own terms.
Step 1: Are You Ready to Become a Homeowner?
Step 2: Get a REALTOR®
Step 3: Get a Mortgage Pre-approval
Step 4: Look at Homes
Step 5: Choose a Home
Step 6: Get Funding
Step 7: Make an Offer
Step 8: Get Insurance
Step 9: Closing
Step 10: What’s Next?