Even with the deflation of home prices over the past few year many home buyers are still finding themselves looking at home prices just on the edge of being too expensive. With this as the case, here are a few tips to help you find an affordable home or home buying scenario.
Homes that have been on the market a long time. While many people shy away from homes that have been on the market a long time this type of home might just be the ticket to a great deal. For example, the seller may have over priced the home in the beginning and the home just sat on the market. And now, after time has gone by the owner might be willing to take a low ball offer to sell the home.
Another thought about homes that sit on the market for a long time is that there must be something wrong with the home. Again, this may be the case but you’ll never know if you don’t go look at the home. In the event that there is something wrong with the home, the home seller might be willing to take a concession on price to get rid of the property – especially if what’s wrong with the home is something you can either fix or live with.
Buy a smaller home. Looking at square footage is one thing that many home buyers do, but what can really make a difference about getting a good deal is to look at smaller homes – you may be able to repurpose a room or a loft to make it fit into your particular housing needs. Also, smaller homes tend to be cheaper to maintain over time and the utilities are typically cheaper. In many cases, more is not better.
Loan programs. Take a look at the different loan programs out there. Don’t shy away from loan programs because of stigma. For example, government loan progams like VA loans and FHA loans still get a bad rap from some real estate agents because of stricter property requirements than conventional mortgages. However, if you want to take advantage of low VA rates or low down payment mortgage programs government loans may be a great alternative for you.
Buying a home with a guest house, or extra master suite. This alternative isn’t for everyone, but you may consider having someone else live with you like an in-law or a friend. Renting a room to someone can help out a lot with mortgage expenses as well as everyday utility costs. If you are going to consider this option make sure you do your homework and set up an agreement that works for everyone. Plan for the end in mind – what do we do when the person wants to move out?
Buying a foreclosure home, a short sale home, or a home at auction. Each of these types of houses can offer significant opportunities to save money. However, you need to be clear on what the buying process is like before you venture forward. Make sure you work with an experienced real estate agent and loan officer to guide you through buying any of these types of homes.
Jason Spitler
