Most buyers have a clear maximum purchase price... let's say it's $450K.

But... even if our goal is to find a house for you to buy where you'll pay less than $450K... I'll still recommend that you consider looking at homes priced up to $475K.

Here's why...

1. Some $475K Homes Will Sell for $450K

If a home has been on the market for 30, or 60, or 90 days, the seller may eventually be more flexible than they were when they first listed their home for sale. A $475K list price does not automatically mean a $475K sale price.  If we're not looking at homes a bit above your target maximum, we might miss one that would ultimately sell in your target range.

2. Price Reductions Might Make Things More Feasible

A home that starts at $475K might drop to $460K after a few weeks.  Then, all of a sudden, a $450K sales price seems must more likely.  If we have already seen the home, you'll be ready to act more quickly than if we had ignored it when it was priced at $475K.

3. It Might Clarify Your Target Price Range

Seeing what an extra $20K to $25K gets you in the current market can be very helpful.  You might decide stretching your budget a bit is worth it -- or you might reaffirm the upper limit of your planned budget.  Either way, you're making decisions with more and better information.

So, if your top purchase price will be $450K, let's consider rounding up our search criteria to $475K.

That won't be a decision to spend $475K, but it will help you make better decisions.