I have another smart home buyer

I looked at a beautiful home two days ago with a client. It was about 1300 square foot bank foreclosure and was listed at $56,000. It was absolutely gorgeous. There was nothing wrong at all with the house. It was worth an easy $110 - 120,000.

It outshone every house we looked at that day. I recommended to my client that she put in a bid a $75,000 the max she was approved for. I told her to email me once she decided on what to price to bid that night.

Later that night she sent me an email stating that she wanted to bid $60,000. I knew that would never win the house. I knew she would lose the house. So I sent her an email stating all the reasons why she should bid $75,000.

But what is great is that she is one of the smart buyers. She sent me that she couldn't afford more than a $60,000 house payment. She doesn't want to over extend. I'm glad she didn't listen to me and go for the top price that she could afford.

This is one buyer that will have a house in the years to come while home buyers that push their upper limits may struggle.

So the bottom line is: Just because the mortgage company approves you for a higher loan amount, and the real estate agent tells you to bid high to get your dream home. Figure out yourself what you feel comfortable in a house payment. And then STAND YOUR GROUND. You will be glad you did in the future.

Russ Ravary your Metro Detroit Realtor