So... you're saying you want to buy a house... and your budget is up to $400K.

And... good news... three houses just above that price point came on the market this week!

One is $415K... but it needs a good bit of work.

One is $420K... but the yard is tiny and it's on a busy road.

One is $425K... but the layout of the main level is way too open for what you actually want.

Will you buy any of them? 

I'm guessing no.

All three are a stretch for your budget... and none of them is perfect for you. That's the problem... not just the price... not just the flaws... but the combination of the two.

If a house was perfect... in a great location, without needed updates, and a layout that you love... then maybe you would stretch your budget.

But if each of these three homes are not quite perfect... then I'm guessing you won't be stretching your budget by $15K, $20K or $25K.

The real question isn't really whether the house is worth $415K... it's whether it's worth $415K to you, with its tradeoffs.

So, when a house pops up just above your budget, let's consider it... but understandably, it might not make sense to pursue it unless it is perfect.