Are you on the market to buy a home on a tight budget?
Don’t let that dream slip away just because you’re tight on funds.
Key takeaways:
- Use alternative financing
- Choose a property in a progressive neighborhood
- Negotiate, negotiate, and negotiate more
- Consider at a fixer upper
- Use a real estate agent
- Bonus: Inspect the home yourself
Here are five ways to make up for a limited budget when shopping for a home:
1. Alternative financing
While a traditional mortgage may not be feasible with a limited budget, there are other financing options to consider such as an FHA loan or a VA loan.
These loans often have lower down payment requirements and more flexible credit score requirements, which can make them more accessible for first-time home buyers or those with a limited budget.
2. Properties in less popular or up-and-coming areas
If you’re having trouble finding a home within your budget in a desirable location, consider expanding your search to less popular or up-and-coming areas.
These areas often have lower home prices because of a lack of demand, which can make them more affordable for home buyers with a limited budget.
Just be sure to do your research and make sure the area is a worth the investment before committing to a purchase.
3. Negotiate, negotiate, negotiate, and negotiate more
If you’ve found a property that you love but it’s just out of your price range, don’t be afraid to negotiate with the seller.
Try to get a sense of their motivation for selling and see if there is room for negotiation about the price.
You may also be able to negotiate for other concessions such as closing costs or repairs to be included in the sale.
4. The good ol’ fixer-upper
If you have a limited budget but are willing to do some extra work, a fixer-upper may be a good option for you.
These homes often have a lower price tag because of their need for repairs or updates, but with some sweat equity, you can turn them into your dream home.
Just be sure to consider the costs of any necessary repairs and make sure you have the skills or resources to complete them before committing to a purchase.
5. Use a real estate agent
Finally, a real estate agent can be a valuable resource for home buyers on a limited budget.
They can help you find properties that fit your budget and needs, and they may have access to listings and financing options that aren’t available to the public.
They can also help you negotiate with sellers and navigate the home buying process, which can make it easier to find a home within your budget.
A limited budget doesn’t have to be a roadblock on your path to homeownership.
With some creativity and perseverance, you can find a home that fits your budget and meets your needs.
Just be sure to do your research and work with a trusted real estate agent to help you find the best possible deal.
BONUS – Inspect the home yourself
It’s not only possible, it’s relatively easy to inspect a home yourself with little to no experience.
In fact, I show homebuyers and real estate investors how to do it all the time. All you need is 30 min., a little initiative, and a professional home inspection checklist.
But how does someone with no experience check a whole house themselves, you ask?
Easy. Common sense, knowing their limits, avoid unnecessary risks, and using the 80/20 rule of home inspections by skipping little things and sticking to the bones:
- Foundation
- Plumbing
- Roof
- Electrical
- HVAC System
You can learn all about it in this post: DIY House Inspection Checklist. It walks you through the basics, so you know where to look and what to look for.
And if you’d like a professional field guide to carry around that fills in the crucial gaps, feel free to pick up my 30 Min. DIY home inspection checklist.
Not only will it walk you through the bones and show you how to find the age of key areas, but you can also use it on all the houses you tour. It can literally save you thousands of dollars on home inspection fees.
