If you are looking to buy a home, but have a lower budget because of financial pressures you are currently under, don't worry. Buying a home with a tight budget is not impossible. To make it possible, you should consider these four tips:
- Find a Fixer-Upper: With a tight budget, you likely aren't going to be able to find a home that is move-in ready. Plus, when you purchase a home that has had many home renovations done to it in the recent years, you will pay significantly more for the home compared to other homes in the same area. When you look at fixer-uppers, it's vital that you look at the potential of the home. Consider whether or not the current layout will work for your family. If so, then making changes within the first few years of living there can definitely help you stretch your budget.
- Buy a Short-Sale Home: Short-sale homes are significantly cheaper because they are usually in a distressed state, and it can take quite a while to finalize the purchase. If you have the time, though, a short-sale home can save you a ton. This is similar to purchasing a fixer-upper; however, there is a chance that when searching through short-sale homes in the area, you may find one that is more move-in ready than others.
- Move to an Up-and-Coming Neighborhood: Up-and-coming neighborhoods are easy to spot because they aren't built up much, which means limited shopping, many barren areas, and more. However, you will notice a heavy amount of construction being done. Working with a real estate agent to find these types of neighborhoods is even easier, since they know which areas are considered "up and coming." Many potential home buyers don't want to move to areas that are under heavy construction because of the noise, traffic, and other problems it can cause. However, if you choose to purchase a home in this area, you save a lot of money and your home value will increase significantly once the construction is complete.
- Move Away From the Best School District: Although it would be nice for your kids to go to the best schools, you can move to an area that has the second-best schools, which will actually lower home prices. If you are on a tight budget, it's worth it to consider this.
When you consider these four tips, you can be sure that you'll get a home that you can afford. Be sure to work with a real estate agent who can help you stay realistic with your budget and find homes that meet your needs perfectly.