Post # 1
Max as in, the highest amount we’d be willing to spend, of course.
We are in a long twisting process with a short sale.
We had 2 max amounts we’d be willing to go to, the first we were firm, then we decided to go up a little more because we were told it would likely be accepted at this ammount.
Now we are at that point and we find out it is still not enough and we should go up another few grand.
A few grand is better than, say, 10 grand. But still, we felt with the work needed on that house we’d be better off getting it for BELOW our max… now I wonder what our max truly was?
How often does this happen to homebuyers? Is this common? Did this happen with you? Did you feel really nervous to do so?
Post # 3
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
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
@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
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 # 7
Thanks for writing, we are sooo nervous to go up even though it is a few grand! thing with this house is it needs a lot of work… but we absolutely love the house.
We love it, so we’re willing, but only for the right price. We could go up more but only for a house which needs less work… but a house that needs less work that costs more than this house would cost will be smaller!
So it’s a total trade up!! So nerve racking.
And at this point it goes beyond the price itself, we also wonder if this is a sign we shouldn’t proceed (like a superstitious thing). But we already went up the other day, just waiting to hear back… hopefully we made the right choice if they accept.
I ALWAYS see on those HGTV shoes the people buying often times go above their initial budget or their initial max for a particular house. It really is nerve wracking!
Post # 8
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
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
We went way lower than our ideal max was.
Post # 11
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
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?