With prices climbing well past the asking price, buyers may need more than they realized to get into a house that checks all the boxes. First, it’s important not to start the search at the top of the budget. Leave some room for negotiating.
Next, remember that lenders will not want to loan more than the appraisal value of a house. If a buyer ends up paying more, they’ll have to make up that difference themselves. The more that can be put down on a home, the less likely there will be an “appraisal gap” to cover.
Finally, some buyers, especially if they are buying their first home, forget about all of the other costs associated with the sale. Closing costs, moving costs, repairs, and replacing appliances, flooring, or window treatments all add up.