You should feel excited and passionate about the home you’re buying, but don’t take it too far. Getting too attached to a house can make it hard to strike a good deal — especially if there are other bids on the table. You don’t want to get stuck offering $20K over just because you fell in love with a place. That can be risky for many reasons, including:
- Your appraisal might not measure up. That means your lender won’t cover the full purchase price, and you’ll be left making up the difference
- You might stretch your budget too thin. You put the home on your radar because it was in your price range. Offering too much over can mean a drastically higher monthly payment and seriously tight finances.
- You may not make your money back. In the event you need to sell the home quickly, you could actually lose cash on the transaction due to your extravagant offer.
If you’re not able to make that “dream” home work at a price you can afford, then it’s time to move on and find a better property more suited to your needs and financial situation.
The information contained on this website is for informational purposes only and is not an advertisement for products . The views and opinions expressed herein are those of the author and do not reflect the policy or position of Brokerage. Source: The Mortgage Reports