One of the most common conversations I have with buyers starts like this:
“We were approved for $900,000… but we’re thinking of staying closer to $600,000.”
There’s usually pride in that statement. And honestly, there should be. It feels responsible. Measured. Safe. And sometimes, it is the smartest move.
But here’s what I care about more than your approval number: your timeline.
Because there’s a meaningful difference between playing it safe and planning for your life.
The Wisdom in Not Maxing Out
Choosing to buy below your pre-approval can be incredibly thoughtful.
A smaller mortgage can mean more breathing room in your monthly budget, flexibility if a job changes, less stress around unexpected expenses, extra money reserved for travel, investing, or renovations.
And it’s not just the mortgage. A higher purchase price often means higher property taxes, insurance, utilities, and maintenance. Savvy buyers look at the total cost of ownership, not just what the bank says they can borrow.
That’s financial maturity.
But where I gently push the conversation further is this: what happens if the home you choose only works for the next two to three years?
Because that’s where playing it safe can quietly become expensive.
The Cost of Moving Too Soon
The most common wealth mistake I see isn’t overpaying.
It’s outgrowing a home too quickly.
Let’s say you buy a $600,000 home today and sell it in four years after it appreciates to $750,000. That sounds like a win… until you calculate the cost of selling:
-
Commissions (5–6%): $37,500–$45,000
-
Closing costs and taxes (1–3%): $7,500–$22,500
-
Staging and minor repairs: $5,000–$15,000
-
Moving expenses: $3,000–$7,000
That’s roughly $53,000 to nearly $90,000, before factoring in closing costs on your next purchase.
In just a few years, you could lose close to $100,000 in non-recoverable expenses simply because the home didn’t support your next chapter.
And that doesn’t account for the disruption. Packing again. Preparing for showings again. Making another high-stakes decision under pressure.
Stability has value. And it’s often undervalued.
The Question I Always Ask
Instead of focusing on price first, I focus on time.
I’ll ask:
Where do you see yourself in five to seven years?
Do you have dreams of your family growing?
Will anyone in your family work from home permanently?
Do you need space for guests, hobbies, or simply breathing room?
Because what you’re really purchasing isn’t just square footage. You’re purchasing years.
Sometimes the “right-sized” home isn’t $600,000 or $900,000, it’s $700,000. A middle ground that costs maybe $600 more per month. Over four years, that’s roughly $29,000 in additional investment.
Compare that to $75,000+ in transaction costs from moving too soon.
That isn’t overspending. That’s being intentional.
What I Actually Care About
My job is never to push you toward the highest number you qualify for.
It’s to make sure the home you choose supports the life you’re building, not just the budget that feels comfortable today.
Approval letters tell you what you can buy. Your timeline tells you what you should.
So before you decide the lower number is automatically the smarter one, ask yourself:
Will this home still feel aligned with my life five years from now?
Because the most financially sound decision is the one that allows your equity, and your life, to compound without interruption.
And that’s the conversation that matters most.
