So, you’re on a budget, but you still want to try and find the perfect dream home. In today’s real estate market, the buyer is king, so if you want to shop around for deals, now is the time. When you purchase a home, there are a lot of things that come into consideration. No matter what your budget is, you will have to compromise on some of the things that you want to get the things that are the most important to you. No matter where you shop, before you begin, make a list of must-have features so you can eliminate homes where you will never feel happy.
You may wonder if you should hire a real estate agent as a budget shopper. While agent fees can be quite high (sometimes as much as 6 percent of the home’s sale price), there are several reasons why you might want to use one. First, the seller may cover the agent’s fees in some cases. Secondly, you will probably find better homes and deals when using an agent, as well as eliminate much of the hassle of self-seeking. A buyer’s agent is the best kind to use when searching for deals, because none of their payments come from your pocket.
Foreclosures foreclosed home is typically the first place people look when shopping on a budget. The house may be in good condition, and you have the option of buying something that is worth more than what you are paying. Usually, the bank will have property auctions to sell off the property, which will then go to the highest bidder. Foreclosed homes are typically sold as-is.
Short Salsa short sale is kind of like a foreclosure, but not quite. In a short sale, the bank will allow someone to sell their house under the mortgage cost to eliminate the hassle of foreclosure. Don’t be fooled though, although the name is called “short sale” usually it takes forever to actually get approved and into the house.
As-is homes being simply homes that are sold without any updates or adjustments. The owner doesn’t want to deal with the cost or hassle of repairs, and will sell the house for less just to avoid the issues. You will want to make sure you inspect the house thoroughly before purchase, because you don’t want to have to pay thousands of dollars in repair fees for a house that isn’t worth the cost.
Look for grants Did you know that some places will offer grants to home-buyers? Some places may have organizations that allow you to purchase homes for much less, simply because they want you to move to a certain area, or fix the house in a certain way. The HUD Good Neighbor program is like this, and allows people to purchase fixer-uppers for 50% off if they agree to fix up the home.
Finding your dream home on a budget may seem impossible, but if you wait long enough and don not give up the hunt, you will be able to find a home that you can live in and love without paying full price. Look in the paper or Craig’s List for all foreclosed homes, short sales, as-is, and any other discount homes to start searching for your dream home today.