Purchasing a home can sometimes be a daunting task for first time buyers who are in the market for a starter home. According to RISMEDIA and Bankrate.com, starter homes are dwindling in some areas due to several factors that include investors purchasing and flipping small homes into rental properties and homeowners choosing not to move and list their properties. In well-established neighborhoods, many homeowners may choose not to move due to high neighborhood satisfaction.
So, the question is how can first time home buyers find a starter home that they like and fits within their budget?
RISMEDIA and Bankrate.com suggests for buyers to search for an older home in the neighborhood they prefer. Although an older home may not be ideal, it is a cost effective option for first-time buyers. If the older home is in suitable condition, buyers can budget for cosmetic upgrades and repairs over a period time without spending a large amount of money at once.
Think with an open mind. When buyers are shopping around for their first home, keeping an open mind to size, neighborhood, layout, etc. is sometimes essential when it comes to staying within a budget. Focusing in too much on one of these areas can limit buyers from a potentially good starter home. Close mindedness can deter buyers from a home that falls within their means.
Buyers should also consider purchasing a foreclosed home that is set at a reasonable price and does not require major renovation. Although going under contract with a bank-owned property can sometimes be a challenging task, buyers should not be discouraged. Doing your homework and working with an experienced real estate agent can make all the difference. Despite the fact that foreclosures are not as common as years past, it is still a decent option to keep an eye out for.
Finally, considering to live in the city or suburbs could also limit the ability of buyers to find a perfect starter home. When trying to budget and save money, purchasing a home further away from work can increase costs in commuting.