01 Mar Tips for First Time Homebuyers on a Budget
Tips for First-Time Home Buyers on a Budget
Whether to rent an apartment in Slidell or buy a home in Mandeville everyone eventually must pay for a home. Young adults who have been out of college for several years, recently married couples and newly formed families may want to purchase real estate but might also have a strict budget. Taking some factors into consideration can help you to land your dream home without going into massive debt.
Purchase a Starter Home
Many people start off by purchasing a starter home. throughout Louisiana fall into this category. Homes further from the cites, in the rural areas, will be immediately more affordable. While starter homes can come in many different forms, they are often on the smaller side. For example, many starter homes may have two bedrooms or one bathroom, or they may have an eat-in kitchen as opposed to both a kitchen and a dining room. Some starter-home owners decide to eventually expand their houses, and others will sell the home, make a profit and purchase a larger one in the future.
Accept a Longer Commute
If you are a first-time homebuyer on a budget, you may want to look outside of the city limits. Houses located near major highways and public transportation may come with a higher price tag as they offer the owners shorter commutes. While having a long commute can certainly cut into work-life balance, it may prove worth the effort for the near future in order to have a home. If you are willing to sell a home in the future or to consider jobs that are closer to the house, this path might make sense for you.
Search the Right Websites
Many first time homebuyers go straight to Zillow for real estate listings and information. This is a terrible place to start. The top ways that more seasoned real estate buyers may be finding homes online are quite different. Zillow may or may not have all of the listings for sale in the local MLS. They are under little scrutiny to ensure their real estate data is correct. Use a local real estate brokers website when searching for listings online. Local real estate brokers have a direct IDX data feed from the local MLS. The two largest MLS’s in Louisiana are GSREIN out of New Orleans and GBRAR out of Baton Rouge.
Guide for First Time Homebuyers
Evaluate the Necessity of School Districts
Plenty of people purchase properties based on the quality of the school districts in which the houses are located. While you do want to ensure that you live in a nice community with safe schools, consider if other features of the educational environment, such as test scores, are really of concern right now. For example, paying to live in a school district with high test scores (the Northshore School District) when you don’t plan to have children any time soon may simply waste money.
Get Cheap Homeowners Insurance
Homeowners insurance is a major expense when owning a home. It is important that you shop around – get quotes and understand the differences in insurance policies. Some insurance policies give you replacement cost some depreciate from the purchase date based off of usable life. You need to compare apples to apples and find out what makes sense to you and your family. With the homeowner’s insurance being such a large portion of the overall homeownership costs, it pays to find the best home-owners insurance possible at the best rate you can.
Find Charm in Simplicity
Opulent houses with lavish backyards and pools can certainly generate plenty of attention. Still, though quaint properties have their own charm. With the right creative mind, a small and old home can quickly turn into a charming rustic retreat or a swanky dwelling with an urbane vibe. Buyers who can envision smaller homes with their unique sense of style infused may find that more possibilities appear on the market.
Select the Right Season
Working with a real estate agent and frequently scouring advertisements for homes on the market are two strategies that can help buyers on a budget. Regular research is sure to reveal that housing prices are higher at certain times of the year than others. Buying a house during one of the off-seasons can lead purchasers to lower prices.
Have Good Contractors Ready
Any home purchase will require some work to be completed. At a bare minimum, you need a home inspection when purchasing a home, this can start as your plan of work over the next 12 months. Unless you are extremely handy, you will want to have a good local contractor that you can call on for a variety of repairs. Whether your A/C goes out or you need to replace some rotting wood, you need a good, trustworthy, local contractor.
Seek Eager Sellers
Connecting with the right seller is also a way to get a lower price on a house that is suitable for the individual or family. Going through listings might seem like a time-consuming endeavor, but really analyzing the details can help. For example, some listings may note that the sellers are eager. If the sellers are eager, they may more willingly negotiate on the price of the house. While potential buyers should not necessarily expect tremendous reductions on the prices, trying doesn’t work.
Take on Some Work
Houses with all brand new features are likely going to come with a higher selling price. People who are handy around the house might decide to look into homes that are in need of some work. Another strategy is to negotiate based on the condition of the house. Current owners of houses that are in need of some repair might willingly reduce the price of the property so that they don’t have to do the work themselves. You, on the other hand, can simply hire a trustworthy contractor to do it right.
The decision to purchase a house is usually quite exciting; however, it is a choice that can come with some worry as well. Many of these worries are related to the costs. Smart buyers don’t want to put all of their funds into a house and find themselves left with no money for emergencies, repairs and personal expenses. Fortunately, with some smart advice, making a financially sound decision is possible for first-time homebuyers who are on a budget.