Before the global health and economic crisis started, you were prepared to purchase a home, but the change of events set you back personally and financially. Your income decreased, and your debts increased, causing you to put your dreams of becoming a homeowner on hold. It took some time, but with hard work, you were able to restore your finances. While you’re anxious to begin your search, you had no idea how much the real estate market changed over the past year.
At the beginning of the pandemic, banks began offering low-interest rate mortgages. Hopeful homeowners jumped at the opportunity to apply for programs that assisted with down payments and closing costs. As a result, the demand for real estate surged as people brought up properties around the country. Fast-forward to current times, the need is still high, but the available homes for sale are few. Consequently, the cost of houses went up, leaving buyers in a pickle – spend more money or put their dreams on hold once again.
Finding An Affordable Place
What do you do when you want to purchase a house, but the vacancies are few, and the prices are high? Though it may seem like all hope is lost, there are specific methods you can consider to find a place that you can afford. Continue reading to learn more.
Reconsider Your Budget
One of the first considerations when purchasing a home is affordability. Experts recommend that buyers don’t spend any more than 30 percent of their income on housing costs. While you may have calculated this figure before the pandemic, reevaluate your budget to see if that’s changed.
Maybe you’ve increased your income, boosted your savings, or lowered your debts over the past year, leaving you with extra cash to purchase a property. However, there’s also the option to live below your means. By eliminating spending in other areas of your budget, you’d have more money in your pocket.
Shop Mortgages (And Other Housing Programs)
Mortgage companies, banks, and even the federal government are doing all they can to make homeownership an affordable reality during these uncertain times. Take advantage of these opportunities while they’re available. Shop around for lenders with low-interest rates and enroll in programs that can provide financial relief. The right combination can result in you saving tens of thousands of dollars.
Consider Fixer-Uppers
You may have dreamed of finding a property that’s move-in ready complete with everything on your wish list. But, unfortunately, newly renovated properties will cost more to purchase. On the other hand, a fixer-upper is a practical alternative. Though it means you’ll have to invest in home improvement projects over the next few months, it pays off in the end.
If you find a property you’re interested in but need a little work, consult a contractor. You can use sources like this HomeAdvisor review to find screened, licensed, ranked, and affordable professionals in the area. They can inspect the property and give you a detailed list of the problems and how much it would cost you to repair. When reviewing these figures, keep in mind that they can increase your overall property value, which is worth the investment.
For Sale By Owner And Foreclosure Properties
Another way to find a property in a seller’s market is to search for places being sold by the owner or properties in the foreclosure process, often these are quick cash sales and you have likely driven past plenty of bandit signs from buyers in this niche without even realizing it. Both of these avenues can save you thousands of dollars on your purchase. Owners are often willing to negotiate on the offer, especially if they own the house outright. Homeowners with properties in foreclosure will often try to sell their property to cover their debt. As long as your offer covers their outstanding balance and court costs, they may be willing to work with you.
It’s crazy how one minute there were houses galore at affordable rates and few availabilities and higher costs the next. But, be that as it may, homebuyers shouldn’t let this news discourage them from finding a house. By using the strategies listed above, you can shave hundreds if not thousands of dollars on the purchase of a home and find something you’ll appreciate for years to come.
