Buying a home requires you to
distinguish between your wants and your needs. Often, buyers can’t find a
“perfect” home. Location is particularly tricky—the better the location, the
higher the price. If nothing else, it’s important to be in a good location for
resale value. If you have your heart set on a certain area or neighborhood but
can’t find the home you want in your price range, you have several options.
Downsize.
Consider a smaller house with a smaller yard and/or garage. The selling
price of a home reflects the number of beds/baths in that home; sacrificing a
home office or guest bedroom are both good options.
Switch
home types. Generally speaking, single-family
homes are more expensive than any other type of home, including condos,
apartments, and townhomes. Don’t forget to consider HOA (homeowners association)
fees or condo dues when comparing the price of a home to that of an apartment
or condo.
Buy
a home that needs work. Just as home price reflects the number of bedroom a
home has, it also reflects the condition of the home. You will find the best
deals in older properties that need some degree of renovation or repair. If you
can live comfortably in the home for a few years, this may be the best option
for you. Save money for repairs, and tackle them down the road. Remember that
home renovation can be costly, although some modifications are inexpensive and
easy enough to do by yourself (e.g., painting the walls).
Rent.
The median age for the first-time homebuyer is increasing. Why? It’s more
cost efficient, and provides the renter with more flexibility in the future.
If you can’t afford your dream home just yet—don’t panic. Take the time to save up
for a down payment, although be aware home prices may rise in the meantime.
Look into signing a lease-to-own agreement (AKA lease-purchase agreement),
which allows some of your rent to go towards your down payment.
Have any questions? Ready to buy? Contact me today!