Sometimes a lower priced home can cost you more than a one highest at a higher price. In some areas, the property taxes and common charges are considerably. I even know of two similar properties, one is listed for $20,000 less in a different town, similar property with age and square footage. It would be a similar commute for my client, and she liked both developments. Both were priced pretty well based on recent sales When she talked to her bank, it turned out the less expensive would cost her $200 a month more. It is because the common fees & taxes were considerably higher than the other unit that we looked it. The $20,000 price difference on the mortgage was about $85 a month according to her bank, and with the low fees and taxes, it would be easier for her to afford the offered for more money.
Before I go with clients, I send them a copy of each listing so they know what they are going to see. With that information, you can pass that on your bank or mortgage person, and possibly find online, so you can have them run the numbers to see what each home would cost you each month. Preparation and budgeting is key in your home search.
Sometimes it makes more sense a little bit more money up front to buy the fully renovated home. For a lot of buyers, it is easier for them to buy a higher cost of the life of the mortgage than to come up with the cost to the money for any renovations that they see fit or urgent. A lot of home improvement stores offer specials on credit cards for any purchases that you make (after you close on your new home).However, doing renovations right away can be time consuming you are setting up your new home on top of any interest that you would have on the credit card.
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