Buyers go over budget to secure dream property

Buyers go over budget to secure dream property

Buying a home – it's not like buying a new pair of shoes. You can't just return a home if you don't like it and there's a lot more paperwork involved than a crumpled receipt.

That's why house-hunters are likely to go the extra mile to find their perfect property and this includes spending more than their initial budget.

 

A poll of over 2,000 Brits who've purchased a property in the last 12 months found that over half spent at least 10% more than they originally intended.

 

What's more, 89% of respondents said that they looked at properties they liked, even if they were out of their original price range.

 

Over half of those surveyed said the home they purchased was at least 10% over budget, while 18% indicated the eventual accepted offer was between 1% and 10% more than they intended to spend.

 

Some 13% of buyers said their property purchase was on budget, 11% paid up to 10% less for their new home and 7% came in well under budget, spending more than 10% less than planned.

 

It's clear from this study, which was commissioned by Online Mortgage Advisor, that a high proportion of buyers are willing to spend more in order to secure the home they really want.

 

Of those who did ignore their budget, what were the driving factors?

 

The most common reason for over-spending was that the buyer fell in love with a specific property and felt like they had to purchase it.

 

Other popular reasons cited by respondents were paying extra for the right location, being encouraged to spend more by a partner and buying a larger property because it represented better 'value for money'.

 

If you're selling your home it's important to remember that buyers may be prepared to spend more on the home they really want. Negotiation is an important part of the sales process and, working alongside your estate agent, you might just get a little bit more than you were hoping for.

 

The above study reinforces the notion that a buyer will pay extra to secure a home they have fallen in love with. That's why when selling it's even more crucial to make sure you do everything in your power to increase the chances of this happening.

 

A buyer is more likely to fall in love with an inviting home that is in tip top condition. And, who knows, they might just spend that little bit more to make it their own…