(Closed) How often do people end up paying more than their “max” on a house?

posted 7 years ago in Home
Post # 3
Member
2027 posts
Buzzing bee
  • Wedding: November 1999

Honestly, unless I was absolutely gaga for a house that was at the top of my budget, I’d keep looking. I prefer the safety of a house at the lower end of my price range. But I think it’s just a personal decision. And renovation always cost more than what you initially think they will. 

In the end, though, a few grand isn’t a big deal when you break it into 30 years. Again, it’s just a personal decision about what you feel comfortable paying. 

Post # 4
Member
5670 posts
Bee Keeper
  • Wedding: August 2010

I think a lot of people start with a budget and then when they start looking may realize that they need to push that budget in order to get a home with the minimum criteria that they are looking for. At least I know that happened to us. We do not live in an inexpensive area, however our jobs are here and our familes so we didn’t want to travel that far. We started out with a budget of $325k and then realized that while we could get a house for that amount it was most likely in bad condition and not in the best of neighborhoods. So we set a new budget at $375k max and bought for $360k. Our mortgage amount is about $200 more than it would have been with our original budget and fortunately we were able to do it.

Post # 5
Member
2216 posts
Buzzing bee
  • Wedding: August 2012

@roxy821:I agree with Roxy.  We started off with a lower max budget, then realized we couldn’t get what we wanted, so we up-ed our max.  We still realized that we were looking for a forever home with a starter home budget.  In the end, we only ended up paying $1,100 more than our initial max budget.  We got really lucky. 

Personally, if this is your house and you can afford up-ing your budget by a few grand, I would go for it.  In the long run, a few grand will only end up costing you a few more dollars a month.

Post # 6
Member
5011 posts
Bee Keeper
  • Wedding: April 2012

We went well under our max budget. I’m SO glad we did as my fiance lost his job three months later and we would have defaulted if we hadn’t gone at the bottom end of our budget.

Post # 8
Member
2190 posts
Buzzing bee
  • Wedding: June 2011

The house we are buying is at the max we said we would spend. But still 100 grand less than what our bank was willing to lend us.

Post # 9
Member
3461 posts
Sugar bee
  • Wedding: May 2012

Add a poll!

It’s rather like a wedding when you think about it.  You start out with “I don’t want to spend more than X” but then get tempted to change X….

Post # 10
Member
1089 posts
Bumble bee
  • Wedding: January 2013

We went way lower than our ideal max was. 

Post # 11
Member
14418 posts
Honey Beekeeper
  • Wedding: June 2011

We started with comfortable really low low.  We soon realized that we just weren’t going to be happy with anything in that price range and ended up increasing our self made budget about 20%.  It was still a ton less than what a bank would have approved us for.

Post # 12
Member
2233 posts
Buzzing bee
  • Wedding: September 2012

I think it really depends on how aware you are of the real estate market. You may think that for $X amount you can get certain things in a house and then realize as you look around that it’s not feasible so you either adjust your budget or your expectations. 

Also, is your budget at that particular max because you can’t afford to pay if you go over or because you feel more comfortable at that amount?

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