Three Great Ways To Maximize Your Home Buying Budget

Using careful shopping practices are a great way to get the best possible deal on your clothes, food and even your car, but you may be surprised to learn that they can also save you money when buying a home. In fact, buyers who actively look for the best possible deal when viewing homes for sale can expect to save a significant amount of money on their purchase. If you are currently looking for a home to buy or planning to do so soon, the following tips will help you get the best possible home for the amount you are planning to spend. 

Consider buying an older home, instead of a new or nearly new one

Older homes, especially those that are more than a decade or so of age, usually sell for less than similar-sized new construction homes. In part this price difference is usually because repair and renovation issues are often far less likely to occur in newer homes, but the price difference may also be similar to the price difference between buying a new car that has never been driven and the lesser price of a pre-owned one. Like that pre-owned car, an older home can offer buyers excellent value for a reduced price. 

Consider a foreclosure or distressed home with minor repair issues

Another option for home buyers who want to get more house for their money is to consider a foreclosure or distressed home. These are often sold by the banks and mortgage companies that issued the mortgage that went into foreclosure. Because these lenders want the homes to sell to a new owner as quickly as possible, they usually price them considerably lower than comparably-sized owner-occupied homes on the market. Remember, however, that foreclosures are usually sold as-is and may have unknown issues, so buyers should always do their research and insist on a full inspection as part of any purchase agreement. 

Consider a owner-occupied home that has been on the market for an extended time

Owner-occupied homes that are lingering unsold on the real estate market can be another possible option for getting a good home at a bargain price. These homes may be lingering for a variety of reasons, including: 

  • poor preparation for market
  • insufficient marketing 
  • pricing over the market
  • condition or appearance issues that limit buyer interest

Homes in this category may have sellers who are becoming impatient and are ready to consider a lower offer, just to get the home sold. 

For even more helpful advice on maximizing your home buying budget, take time to discuss your financial goals and your housing needs with your real estate professional. Because your agent works daily with sellers in your area and also networks with other agents, they often know about homes that are being prepared for the market that might fit your needs and your home buying budget.