The amount of numbers on the price tag for your dream home can frighten a lot of first-time shoppers. Buying an affordable is certainly a challenge, but there are plenty of ways to get into a home at a reasonable price or even below budget. All it takes is some patience, effort, and a little bit of creative thinking. Here are five tips on how to save some money when making a first-time home purchase.
Buy a Cheap House in Need of Work
These type of properties are the most common way to find a cheap starter home. Houses in need of repairs always go for less. It is important to balance the estimated repair costs to see if it is truly a bargain though. Also, remember there are some things that might need repair which are not worth trying to fix or remodel on a budget.
Look for a Home Marked with Tragedy
Maybe there is a property on the market where someone was killed, carbon monoxide leaked, or a suicide happened. Those things and a hundred other similar tragedies can leave properties overlooked and stigmatized because of superstition. It also makes them really cheap when sellers need to get them off the market. See if you can find a place in a pretty good neighborhood and with a past you feel comfortable with adopting.
Consider a Shared Equity Home for Purchase
Pooling resources with someone who is not a spouse to buy a home probably seems a little taboo. At the very least, it may mean they get a profit share when the home gets sold, or strangers are living together and pooling resources. One thing is for sure though, it saves money, and it is becoming more and more popular. Perhaps you and some friends could share the costs and wouldn’t mind being housemates. Come to an agreement and see if your combined resources can make the purchase more feasible.
Shop for a Home in Foreclosure
It is always sad to hear about someone losing their home because they can’t afford it, but it is also a good way to help the seller and buyer. The homeowner needs to sell cheap, usually what they owe, and it allows a buyer to get a cheap house, and the seller to walk away without a foreclosure on their credit.
Consider Building a Starter Home Instead of Buying
If it is your first home, you should be able to have exactly what you want in it. There are a whole new set of creative tips when it comes to saving money on building a home. The National Association of Home Builders is a great resource for learning about home building companies. You can also look into new builders like Parkview Homes which can help you get the customized features you want, where you want them.
These are a mix of creative and common ways to save money on your first home purchase. It takes a lot of patience and homework to buy a house for the first time, but it doesn’t have to be financially crippling either. It should be rewarding.
