Real estate continues to be a hot commodity. Prices remain high, although interest rate increases have cooled the market. Nevertheless, this doesn’t mean you can’t find affordable real estate for your family.
Look Beyond Metropolitan Areas
Cities and surrounding suburbs feature the most expensive properties. Getting past these areas is difficult if your job depends on a short commute. On the other hand, you can expand your search for affordable real estate if you work remotely or run your own business.
Consider areas that are outside of the city limits. You don’t have to purchase a farm miles away from civilization. Look for smaller, well-established communities with cheaper homes and apartments. Most likely, you’ll find properties within your price range.
Work With Real Estate Brokers
Real estate agencies like Homeway hire subject matter experts who understand their communities. They see price trends before their customers. Thus, they regularly pinpoint affordable properties. In the end, real estate agents want to find homes within a customer’s price range. So, they prepare with an assortment of properties. Do not leave the real estate agents of your search for an inexpensive family residence.
Search for someone who intimately knows the market, preferably an agent who lives in the community. Avoid an agent who constantly relies on Multiple Listing Service (MLS) entries. These people don’t understand the areas where you want to find an affordable home.
On the other hand, work with agents who look for bargains. They search the MLS for properties that have been on the market for a long time. These experts know how to ask for a price reduction from the seller to get the property off their hands.
Look At As-Is Properties
As-is properties are homes sold without any changes. Thus, they don’t make any changes to secure a sale. What you see is what you get. Be careful with these as-is properties. Don’t make agreements without determining what to do to make the home liveable. Sometimes, these properties require low-cost cosmetic upgrades. These have a better return on investment than homes that need excessive remodeling.
Get Your Finances In Order
As excellent Lehigh Valley real estate agents would tell you, don’t start looking for properties without getting your finances in order. If your debt-to-income (DtI) is higher in bills owned than income, you want to pull back until things turn around. You won’t be pre-approved for an affordable mortgage or another loan if you don’t straighten out your finances.
Also, consider gathering as much cash as possible. There are some options where financing isn’t accepted. Instead, these real estate companies deal in cash-only transactions. As a result, gather what liquid capital you can before shopping for affordable real estate.
Search For Vacant Homes
Vacant homes are those abandoned due to situations like foreclosure. Their current state and length of vacancy have a rating between one and three.
The latter is the worst-case scenario. Check the property’s state before buying off the list. In some jurisdictions, the home must be code-compliant before your municipality issues a certificate of occupancy. Consider the return on investment in hiring workers or applying sweat equity.
Lean On Word-Of-Mouth
Sometimes, the MLS doesn’t tell a complete story of available properties. It comes down to good old word-of-mouth from community members. They know who’s considering putting their home up for sale and their prices. Additionally, they can pass your interest on to them.
Like other methods mentioned, be careful with these suggestions. Make sure the word-of-mouth suggestion comes from a reliable source. If you know the seller, reach out to verify the facts. You could be the first on the list when they officially put the property on the market.
Short Sales
Short sales occur when a current homeowner has worked with a lender to sell the home for the remainder of the value owed. Sometimes, the price is lower to generate more interest. While this method does offer an affordable home, there’s a chance of additional costs if the current owner doesn’t want to leave, such as eviction costs.
Conclusion
You don’t have to pay half-a-million dollars for a family home. Follow the above guide to find an affordable property.