Roughly two-thirds of homebuyers are willing to go overbudget to snag their desired property, according to a new survey conducted by LendingTree.
In a national survey of more than 1,000 prospective buyers, 64% of respondents admitted they would spend more than their original budget for the right property, while 37% acknowledged finding a home within their budget was the most stressful aspect of the buying process.
Roughly three-quarters of millennials stated they were willing to pay more than they originally planned for a home.
But spending a higher-than-expected sum often comes with a thick slice of agita: 48% of first-time homebuyers said they were most stressed about finding a home within budget, compared with 31% of repeat buyers, while 17% of all buyers were stressed over finding a home in the midst of a low housing inventory within their area.
“Overpaying is one of the downsides of very low interest rates,” LendingTree’s Chief Economist Tendayi Kapfidze said. “As many homebuyers budget a monthly payment, lower rates translate into a higher mortgage amount. Coupled with tight inventory in some areas, it increases the risk of bidding wars over asking price.”
