You’ve been approved for a $300k mortgage loan and you can’t contain your excitement.  The first thing you do is call me, of course, (your realtor) and narrow down the search criteria.  And then it happens… you begin to wonder if you should buy new construction because you saw a community advertise new homes starting at $290k and you want to be there!  Oh the dilemma…

Folks, I’m going to tell you now… whether you’re considering resale or new construction, you need to set your max search amount at around $10k lower than what you can spend.  “Why?”, you ask… well… read on.

If you’re looking at resale within a certain price range in the current market conditions, you’re likely going to have to put in an offer at or above list price and will have to leave room to go up in price due to a multiple offer situation.  So leave yourself plenty of room or else you may get outbid and lose out on the house.  (Also consider that you’ll likely need to put down a substantial due diligence amount in order to have your offer considered by a seller… make sure you leave yourself enough cash for that!)

Now let’s change gears… most new construction prices do not include the lot premium cost that you’ll have to pay.  Lot premiums can be $0 or they can range from $500 – $10,000+.  And guess what… you won’t have room for all the upgrades you want (like possibly premium granite counters in the kitchen) if you have a really high lot premium and you bought at your max loan amount.  You want the pretty finishes, right?  Better plan for those ahead of time.

Bottom line: do not look to purchase at your max loan amount.  Leave yourself $10k wiggle room.  You’ll be glad you did.  Start by getting yourself pre-approved with a lender and then chat with a good realtor (aka: me) that can guide you through the process.

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If you are interested in finding out how I can assist you with your real estate needs, click this Calendly Link to book time for us to chat.

Relocating to the Cary area? Click here for the Cary Relocation Guide.

Thinking of selling your home? Click here for the Seller’s Guide.

Learn More:

• Click here to learn more about the Due Diligence Fee.
• Click here to learn more about the Earnest Money Deposit.
• Click here to learn more about the benefits of having a buyer’s agent.
• Click here to learn more about the benefits of having a seller’s agent.

Happy Home Buying & Selling In North Carolina!