When looking to find your dream home, it can be a bit pricey, and you don’t want to throw a huge amount of money at something right away. Instead of breaking the bank for a house, consider spending less on a home that might be more perfect than you think.
Here’s some reasons why you should consider buying a house for less than you can afford.
Look at Finances
Before you begin the house hunting journey, you’ll want to get your finances in order. It’s important to know how much you can afford for a down payment and monthly payments, and using something like a house payment calculator can be helpful in determining those numbers.
Begin the Hunt
Once you have that information, it’s time to start looking! Remember you probably don’t need all that space so unless it’s really worth the extra cash, try and find somewhere comfortable, but not too large. After that, you can begin browsing houses within your budget.
However, there is a small catch, and that involves the 2021 housing market.
Buying a house in today’s seller favorited market is no easy task. Buyers today have to either increase their budget to put more money forward, or aim to buy houses that are priced lower than they originally planned for.
Knowing this, remember to not write off houses that may be “too cheap” for you, as you might be able to get said house for a good price and then have money left over for renovations.
I’m not saying to set a budget and then completely ignore it, if you can afford the house you want then by all means buy it. Just remember to not let a person’s asking price fool you, because they will probably be increasing that based on offers they get from other buyers.
Remember Those Remodels
Another reason to consider not purchasing the mansion and going for the smaller home is less potential repair and updating costs.
A 150-square-foot bathroom that needs retiling will cost more than a 50 square-foot one. Your backyard will need more maintenance and care if it is larger than a small dog park.
Repair costs are not guaranteed to be less, but fixing something in a smaller house will certainly hurt your pockets less than in a big house.
Finally, saving money is a great reason to buy a smaller house. When you purchase a home for less than your original price, you now have that extra money to cover things like bills and any unexpected costs that might come up.
As I said before, don’t make a budget and then completely ignore it, but just remember that saving money by finding a smaller house is not a bad thing.
Remember these tips the next time you’re out house hunting!