Finding a home in your budgeted price range can be daunting in certain housing markets. But there are ways to find an affordable home if you are willing to be creative and flexible. With some savvy and the right resources you are sure to save some money. Here are some tips that may help.
Negotiate with the Seller
Many home sellers do not expect to get the full asking price. Some do, however, and others hope to provoke a bidding war that will bring an even higher offer. But if you find a property you want to buy, make an offer for the price you can afford. A real estate agent can provide information about comparable selling prices for similar properties in that area. The longer the property has been on the market, the likelier the seller may be inclined to accept a lower purchase offer. Working with your broker to learn these facts about each property you look at can help you find one for the right price.
Adjust Your Must-Have List
A realtor may ask for your list of must-have features for the house you are looking for. But if you cannot find a desirable property within a reasonable period of time, consider reorganizing your list of preferences. For example, if you are having trouble finding a home in your price range with a fireplace, you might be able to locate one with a space for installing an electric fireplace or a wood burner. Instead of holding out for three bedrooms and a home office, you might be able to convert a fourth bedroom into an office space. Take a hard look at your must-have list and see what you could really do without.
Use Creative Financing
Thoroughly review your financial reserves. You may be able to find additional funds for your home purchase. You may want to borrow from your stock portfolio, a long-term college savings plan, or a valuable collection you no longer want to increase your down payment. You can repay borrowed funds after purchasing the house. Your real estate agent can advise you to ensure your use of these funds do not skew your credit score or financial standing as a buyer.
Buy a Fixer Upper
If you have practical woodworking skills or experience that can be applied to fixing up a home with some minor issues, you can buy a cheaper house and renovate it at your convenience. A livable home can be improved gradually according to your budget and schedule. You can remake the house exactly the way you want at a price you can afford. This does require a lot of personal experience, otherwise you’ll be likely to spend more money than before.
Don’t be discouraged if the houses you are looking at are more expensive than you can afford. YouThese options might help you buy a home that meets your needs and makes you happy. Be persistent, have a back up plan, and work with a good broker, and you’ll be more likely to succeed. Good luck as you plan your new home purchase.
