It happens every day. Your Realtor has taken your list of wishes for your dream home, entered them into the MLS property search, and produced a compilation of listings that might suit you. You tour the houses, and find your dream home…but it’s way above the budgeted cost you had planned for. You keep looking, but that home is practically screaming your name at this point, and no other homes are stacking up. What do you do?

The Marcroft Team is Hailey, Idaho’s source for real estate. Whether you’re looking for homes for sale or selling a house, we will partner with you throughout the process. To find your dream home, contact us today!

So what should you do if the home you want to buy is out of your price range? We have some possible solutions.

Reset Your Expectations

As much as it might pain you to let it go, taking on too much debt and having a mortgage that’s far more than you can comfortably afford is going to be infinitely more painful. Also take into account the cost of property taxes. And it could damage your credit if things get too out of control. It’s time to step back and be realistic about what you can actually afford, and to have a frank discussion with your Realtor about these expectations.

Adjust Your Offer

Before you give up, however, talk to your real estate agent about the home. He or she can do some homework on your behalf. For example, it might be overpriced or on the market for a long time. The owner might be willing to drop the price if a reasonable offer is made or return with a counteroffer, or other negotiations. There could end up being a compromise. If the buyer won’t budge, it’s time to move on.

Talk to Your Mortgage Broker

Sometimes, what seems like a large jump in the full price of the home won’t actually make a huge difference in the monthly payment. Tens of thousands of dollars could end up being only $50-100 extra each month, for example. Additionally, there are programs out there that can offer assistance with a down payment, lower interest, or other options. See if your broker can work with the new number–you might be pleasantly surprised. However, do keep in mind that while a bank might approve you for a very high loan, that doesn’t mean you’ll be able to afford it. Be realistic!

Think Outside the Box

Consider other parts of the equation. If you’re approved for the full cost of the home through your bank, that’s great. But there are other ways this more expensive home could save you money. For example, if you’re commuting an hour to work every day and now you’d be 10 minutes away, you’re saving a lot on gas money every month. Or if the home is outfitted with some incredible energy-efficient appliances, windows, and other items, you could be making up for it in utility savings.

The Marcroft Team is Hailey, Idaho’s expert Realtor, and looks forward to showing you your dream house listings. And if you’re selling a house, we can work with you to determine the best way to make that happen. Contact us today to get started!