I worked as a Realtor for about a decade. I spent much of my time helping people move into their first houses. While the market may be different, the mindset of sellers and buyers remains fundamentally the same.
Below are some of my best recommendations for locating the most affordable homes in your area.
Be aware of what you’re looking for
This seems like the opposite of what you should do in the event you’re seeking a bargain. However, the term “cheap” can be subjective, and what you desire and need may differ from what the other person would like and require.
If you know what you’re looking for and require from a house before you even begin shopping, you’ll be ready to come across that amazing bargain. It’s the reason you can’t get the opportunity to buy a house for cheap in today’s market.
If you’re unsure what you’re looking for, spend an hour online browsing homes for sale within the price range you are looking for. You’ll see all kinds of styles and amenities. You’ll be able to create lists of essentials as well as nice-to-haves and should-not-haves. For instance, I should have a spacious yard, but it is not necessary to have an additional story.
Check for properties that were for sale for a while
The meaning of “a while” is referring to will depend on the market you are in and the type of house you are looking at, but if most homes sell within 30 days and you begin considering homes that are up for sale for 60 days, they could be in the market to negotiate a deal. Even though it’s a seller’s market nearly everywhere, it doesn’t mean every house is in plenty of demand.
Before you start looking, but especially before making an offer of a lower amount, obtain an approval letter from your preferred href=”https://www.fool.com/the-ascent/mortgages/best-mortgage-lenders/?luri=%2Fmortgages%2Farticles%2F5-hacks-to-find-the-most-affordable-homes-in-your-state%2F&furi=%2Fmortgages%2Farticles%2F&fref=https%3A%2F%2Fwww.google.com%2Fmortgage lender. In the absence of this, your offer will not be able to carry the weight needed to make this move happen.
Don’t be afraid to sweat equity.
Check the header again before proceeding, and make sure it states “a little sweat equity,” not “buy an entire tear-down.” There are a lot of homes available for sale that were acquired or are owned by someone else who chose not to make any changes in recent years.
It’s not always bad that the refrigerator in Aunt Martha’s kitchen, which was built in 1980, will last you and your children. However, it can make those who have a specific idea of what they’d like to purchase think twice about it and can lower the value of a house because of the seller’s fear of getting a buyer.
Nothing wrong with embracing the groovy 70s style. Keep the house as you discovered it if you’d like — heck, I’m working on renovating a 1950s-style home back to its original splendor. Keep in mind that such houses are often seen as properties that “need to be renovated,” and that works for you as a potential buyer.
Extend your preferences for the neighborhood.
There are many people who become a part of the town or neighborhood even though several miles away will provide the same amount of entertainment, culture and education it is they’re seeking. It’s interesting how often the neighborhood hits the spot, which makes everything expensive, while a similar neighborhood that is just a few blocks away does not seem to receive the same amount of attention.
If you own a car or live in a town that has decent public transportation and is a few additional miles from your workplace or your gym of choice is not a problem if you are able to lower your mortgage payments significantly, particularly now that mortgage rates are hovering within the high 6 to the 7% range.
Consider a duplex
Surprisingly, this may sound expensive. A duplex? It’s likely to cost more than one home! You don’t realize that a duplex is an investment If you choose to purchase it correctly.
If you find an apartment, duplex, or quadplex that needs some work or is located in a less desirable area that isn’t the one you originally envisioned, you may make use of the FHA loan or one of the first-time buyer programs to get into the property and take the money you receive from the tenant who is not yours to lower the overall cost of housing.
You’ll need to be a landlord, which could mean dealing with tenants and possibly broken water heaters that break at 3 a.m. If you approach it with this in mind, it can result in significant savings over the long term. The long-term view is the most important thing to consider.
Finding the most affordable house in your area is easy.
It’s not difficult to find low-cost homes in your area; the difficult part is being the first to be there or at least the one whose offer has been approved by the owner.
However, if you concentrate on those shabby houses that have easy fixes (including just loving them for being time capsules), houses that aren’t always in the most sought-after neighborhood, or even multi-family housing will save you the cost of your mortgage each month for decades or years to take.
