4 Must Vs. Bust Buying Tips to Avoid Overspending on Your Home

Rockwall Realtors Sarah Naylor December 2, 2022

Buying a house is one of the biggest and most important financial purchases you’ll make. It’s important to make sure that you don’t overspend and become ‘house-poor’ during this critical part of your life. The term refers to the condition of being so burdened by a mortgage that you’re unable to pay for any other expenses or save for retirement. If you buy a house beyond your budget, you might face higher levels of debt and stress that’ll require you to change your lifestyle or career.

From understanding the purchase price to talking to a residential real estate agent, here’s all you can do to avoid overspending on your new home:

What is the purchase price?

Ask your realtor for a CMA (comparative market analysis) before you make an offer for the house that you fell in love with. You’ll learn about the average prices for every square foot of land in the neighborhood, which will help you compare prices for the property you’re planning to buy. If the house of your choice is more expensive per square foot, you should ask about any upgrades that justify the price.

Let your home appreciate

The Principle of Progression in real estate states that a home with a lower value will appreciate more than a home with a high value. So, instead of purchasing a more expensive home according to the square feet, you should try investing in a lower price per square foot home in the same neighborhood to let it appreciate.

Create an exit strategy

A military family needs to have an exit strategy for its real estate adventures. Usually, it’s best to make preparations for converting your property into a rental home after you PCS. Many military families are unable to break even when selling their homes after just three years. It makes a lot more sense to rent your home out and keep getting a steady income.

Find a realtor in Rockwall

The home-buying process is stressful enough already; why make it even more difficult by going through the journey all alone? Top real estate agents at Naylor KW can help you out. We have a deep understanding of the real estate industry and can help prevent you from making any mistakes when you’re buying your luxury home in Rockwall. Our goal is to ensure that you find your perfect home at the perfect price—we treat our clients like family!

Contact us for more information!