The typical real estate answer to that question is a hard no. That’s because viewing homes out of your price range—even if just online—creates unrealistic expectations and sets you up for disappointment.
However, there are some unique scenarios where this sound advice can be briefly ignored. Keep reading to find out if any of these speak to your own search for luxury homes for sale in Carmel, CA.
- You’re not familiar with the market.
If you’re coming from a different area, years of homeownership, or renting, your expectations won’t quite match up with what the local market offers. Viewing homes above your price range gives you valuable feedback. It clues you in on the amenities and perks that start appearing above a certain price point. Even if you stay on budget for your home buying experience, you will have gotten a better sense of your potential home’s place in the local market and its chances for resale.
- There are zero houses in your preferred price range.
This situation regularly pops up in highly competitive markets where homes go from for sale to sold in the blink of an eye. This also happens if your initial budget is too low for the neighborhood in question. In both cases, you’ll have to extend your search to other areas or bump your budget up to start seeing homes.
- The convenience offsets the price hike.
Newer. Closer to work or schools. In a neighborhood with a great sense of community. These are all valid reasons to pay a little more for a home. These kinds of benefits extend their value long after the excitement from a great price deal wears off. These also come with cost savings of their own: less urgent repairs, easier maintenance, and better mental well-being.
- Your agent believes they can bargain with the seller.
Realtors don’t make a habit of showing homes above their clients’ budgets. If you already know what to expect in a market (see scenario #1), your realtor may be nudging you to a potential deal. Pricing is rarely an exact science. The listing in question might be asking too high for the neighborhood or its condition. This applies doubly to stale listings whose owners are more motivated to close.
- You have little debt and a great credit score.
When approving borrowers, lenders like to see a high credit score, consistent payments and a manageable ratio of debt to income. These patterns indicate a low risk investment, which means more favorable loan terms for the borrower.
If your spending habits fit that profile, you can afford a more expensive home. Having savings sizable enough to cover the standard down payment of 20 percent helps things along and frees up your mental space for something other than financial worries.
Buying a home above your initial budget requires you to consider many factors outside of your finances. To help guide you in the right direction, call us, The Peninsula Group Real Estate, at 831.595.5045 or drop email at info(at)ThePeninsulaGroup(dotted)com. We’re a group of expert Carmel, CA Realtors focused on delivering desirable results backed by in-depth knowledge and extensive experience in the business.