If you go to a real estate agent in search of a house, there are two questions you are likely to be asked. One is how much you want to spend. The other is what sort of house you are looking for'how large, how many rooms of what sort, in what location. It is in the agent's interest to ask the first question; since his commission is a percentage of the sales price, he would like to sell you the most expensive house you are willing to buy. It is not clear that it is in your interest to answer it. Even if you can afford a five hundred thousand dollar house, you might prefer one that fits your requirements a little less well and costs substantially less. If you tell the agent that you are willing to spend five hundred thousand dollars he may decide not to show you any house that will sell for much less than that. The second question raises another problem: What you want to buy depends on what it costs. You would like a house with a bedroom for you and your wife, a bedroom for each child...
learn more
