What To Do If You Bought Too Much House
For Sellers

What To Do If You Bought Too Much House

Peter Kim
March 15, 2024

Buying a house is one of the biggest achievements you'll ever experience, but if you let the excitement dictate your purchasing choices, you may end up like one of the millions of Americans who feel they're now "house poor." If you fall into this category, you're most likely wondering what to do if you bought too much house. Odigo Real Estate Club helps homeowners like you conquer this situation, so keep reading to learn the best advice for managing the expense of an excessive home mortgage.

Determine Your Financial Situation

The first step in dealing with your difficult situation is determining the overall state of your finances. You can establish if you bought a home you can't afford using the following five criteria:

  1. You have less than 5% equity (ownership) in your home.
  2. You're paying at least 40% of your monthly income on your mortgage.
  3. You can't afford the maintenance or upkeep of the home, making its value plummet.
  4. You have rooms you rarely use or rooms with no furniture.
  5. You can't pay rising property taxes.

In addition, make a detailed examination of the following.


Your income is the most obvious consideration when determining your financial situation. If you work a traditional job, you likely don't have much control over your income, but consider asking for a raise. You can also look for alternate forms of income, but you may find other areas of your financial situation that you can more easily change.


Expenses are one of the easiest areas of your budget to reduce, as they likely consist of both essential and discretionary spending. If you're managing an excessive home purchase, consider the following questions for reducing your expenses:

  • Do you have any categories in your budget where you consistently overspend?
  • What conveniences can you reduce or eliminate, such as eating out or entertainment, in the short term to have more long-term security?
  • Can you switch insurance providers, grocery stores, internet providers, or some other service to obtain a more affordable rate?

If you can reduce your discretionary spending even by $100 a month, it can go a long way toward helping you afford your high mortgage.


If you have other debts besides your mortgage, you might find a way to reduce how much you're paying on them. Consider consolidating your consumer debt, renegotiating the terms of a car loan, or applying for deferment on your student loans until you can better secure your financial situation.


If you own additional assets, such as stocks, a retirement fund, or an extra car, consider selling or liquidating them to pay off your mortgage more quickly. Always consult with a financial advisor before deciding which assets would help you afford your home and which should remain long-term investments.

Look Into Refinancing

If you're dealing with an oversized home purchase, consider refinancing your mortgage. Refinancing is the process of switching out your old mortgage for a new one, and if you time it right, it can mean significantly lower interest rates. The higher your credit score, the better chance you have of receiving lower interest rates, which can save you thousands of dollars every year.

Consider Loan Modification

Loan modification is a less extreme option for adjusting your mortgage compared to refinancing. Before committing to this option, consider that it can lower your credit score. You should only use this option in more dire circumstances, such as if you require a principal reduction on your mortgage (which refinancing can't accomplish), you're behind on mortgage payments, or you're at risk of foreclosure.

Seek Extra Income

Are you wondering what to do if you bought too much house? Consider finding an opportunity for extra income to help you afford your payments. Options for increasing your income include:

  • Asking for a raise
  • Finding a second job part-time
  • Freelancing or consulting
  • Investing in high-yield, short-term opportunities
  • Finding passive income streams

Rent Part of Your Property

If you're dealing with excessive home ownership, consider whether you can rent out part of your property to help pay the mortgage. If you have "too much house," you likely have more land or rooms than you need. For example, you could rent out a bedroom to a college student, or your entire basement to a newly married couple trying to get on their feet.

If your home purchase includes a lot of land, consider renting it out to campers or people with RVs so you can still have the privacy of your home but have an extra stream of income.

Explore Downgrading Options

If you're coping with house overbuying, you may find downgrading a valuable option. Using this option, you'll sell your house for one you can afford, which usually means a less appealing location or a smaller property. While you'll likely feel sad leaving behind the house you love, you'll also feel some relief because you're reclaiming your long-term financial security rather than wondering how you'll pay your mortgage each month.

Request a Professional Consultation

If you're adjusting to an oversized property purchase, you don't have to make all the decisions by yourself. You should seek advice and guidance from various professionals who can guide you through the situation. Consider seeking out the following experts:

  • A financial advisor can give you the best all-around advice on steps you can take to secure your financial situation.
  • A real estate agent can help you determine how easily you could downgrade your living situation.
  • A mortgage agent could give you advice on adjusting your loan or refinancing.

Attempt Negotiation

If you've determined your other debts are a major obstacle to paying your mortgage, consider negotiating with your other creditors to reduce your monthly payments. The best candidates for renegotiation include credit card debt and high-interest loans, but your financial advisor can help you determine other areas where you could free up some money by lowering monthly payments.

Move Past Your Mistake

If you're addressing buying too much house, one of the most important things you can do is learn from the lesson and never make the mistake again. With help, you'll overcome this challenge, but if you make the mistake a second time, you'll find it more difficult to conquer than the first time. Everyone makes poor decisions occasionally, and using them as a learning experience can create long-term stability.

Contact Odigo Real Estate Club for Help

Are you wondering what to do if you bought too much house? When you need the best real estate advice, reach out to Odigo Real Estate Club. For more personalized strategies, talk with one of our experienced agents. 

Whether you need real estate advice or want to list your home, call (425) 409 3823 or schedule a free consultation with us today.

About the Author

Peter Kim

Peter Kim is the owner of Odigo Real Estate Club, a leading real estate agency in the Greater Seattle area that specializes in residential, commercial, and luxury properties. With over 10 years of experience and a team of highly skilled agents, Peter brings a wealth of knowledge and expertise to the real estate space.

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