Buying a place to live in and calling it home is a significant investment for many. Moreover, finding a reasonably priced home in today’s economically challenged space is also quite a task. The ever-increasing real estate prices have left many disheartened and discouraged. But despite the disappointing market trends, there are still different ways to find an affordable home that meets one’s requirements. Some of the approaches require extensive research, which is beyond traditional options.
1. Spread the word
When searching for an affordable home, one of the most effective strategies is to leverage one’s network. Start by reaching out to friends, family, acquaintances, and even colleagues to let them know about the housing needs. By doing this, one cannot only increase the likelihood of finding a great deal on a home, but one can also get the possibility of being informed about potential listings that may not be readily available. Moreover, if one shares their house search details within the network, there is a significant chance of securing a decent, cost-effective, and suitable home.
2. Consider applying for a Section 8 housing program
The Department of Housing and Urban Development (HUD) offers a housing assistance program called Section 8. The program is designed to offer financial assistance with mortgage and rent payments through vouchers. So if one qualifies for the program, their mortgage amount can be reduced by a good chunk, allowing one to own a home at affordable rates. That said, it is important to note that the Section 8 homeownership vouchers are only limited to first-time home buyers. Along with that, the individuals are also required to be approved for the mortgage on their own terms and meet the guidelines for minimum income and employment.
3. Look for listings older than 30 days
It is always a good idea to keep an eye on homes that have been on the market for more than a month. As per the market trends, the longer a home is on the market, the better the chances of negotiating its price. In addition, it is always better if one expands their search to homes with lower prices that have been on the market for at least two weeks.
4. Consider other types of homes
Due to the high demand and specific features that Many people look for in a house, it can be quite challenging to find single-family homes at affordable prices. In such situations, explore alternate home options, such as condos and townhouses. These types of properties are often listed at much lower prices compared to single-family homes. The price difference is primarily due to the fact that with single-family homes, the homeowner has exclusive ownership of the property, including the front yard and the land it sits on. On the other hand, with condos and townhouses, the one and common areas are shared with other homeowners within the community. Additionally, these properties are typically governed by a homeowners association (HOA), which sets rules and regulations for the community. As a result, any modifications or changes to the property may require approval from the HOA.
5. Try to compromise on certain amenities
It’s common knowledge that homes with more modern and smart features come with a higher price tag. Naturally, everyone wants a home with those features, but if one has a set budget in hand for a home, they may have to be willing to make some compromises. For instance, one can consider purchasing a home with a rather simple architectural style or a smaller floor area, as long as it still accommodates the family’s needs, all for a more affordable price. Similarly, it is important to carefully consider which amenities are essential and which ones can be downgraded when looking at potential homes.
6. Consult experts
One can also consider taking advice from experts on the matter. For starters, one can consult experts from a HUD-approved housing counseling agency. These agencies can guide one through the mortgage process and suggest ways to find affordable housing based on one’s financial situation and requirements. Apart from these agencies, one can also consult realtors as they can also suggest the best-suited properties based on one’s budget requirements. Plus, one can also hire a buyers’ agent, who can negotiate the price of the property on one’s behalf.
7. Expand the search to other areas and cities
The location of the property plays a huge role in determining its value. So, consider expanding the house hunt beyond local locations and explore other cities/states that offer lower property rates. If one wishes to stick around in the same city, consider exploring different neighborhoods within the area. For instance, one may find properties located further from public places or schools with lower rates. If that does not work out and yield the results required, broaden the search further to include different cities. Try to familiarize oneself with the most affordable cities in the country, as that can help streamline the search more effectively.
- Oklahoma City, Oklahoma – The average price of a home in this city is around $213,000. Furthermore, another compelling reason to choose the city is its rich cultural offerings and a number of other attractions. These include the Bricktown Entertainment District, the Myriad Botanical Gardens, and a wide array of fascinating museums.
- Fort Wayne, Indiana – The city houses offices of some of the biggest tech companies in the world. Yet, it continues to have affordable home prices, with the average price being around $227,000.
- Pittsburgh, Pennsylvania – The home to the Andy Warhol Museum and the Heinz Field stadium, the city of Pittsburgh also houses affordable homes. The average home price in the city is around $236,000.