When you’re in the market for a new home, you need a smart home-buying strategy. Even on a budget, investing time and attention ensures you get the best bang for your buck. After all, a good home purchase can be a blessing that serves you for many years to come
If you’re in the process of saving up for a home, check out the TradeTips app. Saving up capital is a slow process, but investing your money in well-performing stocks can help speed up the process. Do go at it alone, especially if you’re not familiar with the stock market. Let TradeTips’ seasoned investors guide and proven AI guide you through the process.
Whether you’re ready to buy or still saving up, consider these simple but underrated tactics for buying a home on a budget.
Consider Foreclosure Properties
Foreclosure properties can be hidden gems. However, like any other property, you must do your due diligence. When you find the right home, act quickly. Place your offer before another interested homebuyer beats you to it. Cheaper foreclosed homes usually result in multiple offers. Don’t be surprised if these multiple offers end up inflating the home’s price. This is why it’s critical to set a maximum price limit. Don’t let the thrill of finding an insanely cheap listing blind you into a bidding war. Also, this maximum price limit should take repair costs and closing costs into consideration.
As the old saying goes, everything is negotiable. Good negotiation requires planning, and it’s not always easy. You need to know your starting price, as well as your maximum offer.
Here are some pro tips for negotiating:
• Know the home’s features and statistics. It’s wise to have this information listed on a piece of paper. Make sure this information is either highlighted or in bullet points for easy access. During negotiations, emotions can run high. Make the process easier by having all relevant information summarized.
• Know the market. There are times when there are more homes on the market than there are potential buyers. This is prime negotiation time. However, there are also times where there is an inventory shortage. During shortages, it’s harder to negotiate.
This doesn’t mean you shouldn’t negotiate at all. It just means you’ll have to rely on your knowledge of the home or the surrounding area as a potential bargaining chip.
Do Your Research
Before you start shopping for a new home, it’s wise to educate yourself on the basics of home purchasing. Being knowledgeable about the home buying process enables you to be more confident and relaxed. Many real estate terms can be confusing, so don’t be ashamed to ask questions.
Once you’ve narrowed down a potential new home, you’ll need to conduct thorough research on not just the home but the surrounding area. You’ll also need to dig a bit into the history of the home, including its sales history. A sales history can provide a benchmark from which you can see if the home’s current listing is inflated. It can also help you predict potential resale value.
In a perfect world, finding your dream home would as easy as checking items off a list. But it’s rarely that easy. Prepare to make some tradeoffs along the way. Being willing to compromise can help you secure a good option. Meanwhile, being aware of your deal breakers can prevent you from settling for less than you deserve. Those deal breakers will vary depending on your values and priorities.
Some deal breakers to consider include a poorly maintained roof, plumbing problems, outdated electrical systems or excessive mold. These issues could all lead to skyrocketing repair expenses down the road. This is why it’s critical to get a state certified and highly rated home inspector. If possible, be present during the home inspection.
The process of buying and selling homes is ever-changing, and technology is now a major part of the home-buying process. Both Redfin and Trulia provide alerts whenever a new listing appears. This can give you a competitive edge, especially when you’re on a budget and can’t afford to be a step behind on that budget-friendly home. Trulia also provides a “heat map”, which highlights areas of high crime and long commute times.
Technology is also a great asset when saving up for your home in the first place. Rather than having your money sit in the bank as you slowly accrue capital, consider investing in well-performing stocks. Rather than going at it alone, download the TradeTips app and let seasoned investors guide you through the stock buying and selling process.
As you can see, buying a home on a budget requires the use of numerous tactics.
Be prepared to use negotiation, research, and technological tactics to land your dream home without breaking the bank. Knowing your values and priorities can guide you when it comes to making necessary tradeoffs. Lastly, a foreclosure property can be your diamond in the rough. Conduct your due diligence and that foreclosed property can turn into your ideal home, with cash to spare!