The 4-Step Strategy to Buying a Starter Home
First-time home buyers are always searching for the perfect starter home. They want a house they can grow in for five to ten years and eventually sell to move on to a bigger home. However, many first-time home buyers are struggling to find a starter home to purchase.
Even though there are few homes for sale and the cost of houses is increasing, a first-time home buyer still has hope if they follow this four-step strategy.
Know the Market
The worst thing a buyer can do is think they will outsmart the sellers on the market. The real estate market dictates how a buyer and seller must approach a sell. In a time where sellers have the upper hand, the buyers will always be competing against each other to get their perfect house.
A buyer who is trying to make a purchase with a low down payment or needing to get a house under a certain budget may struggle. They will need to be vigilant and pay attention to the houses that are in their price range. A starter home may not have all of the qualities the buyer is looking for, but it should fit the buyer’s major needs at the time.
Considering the Most Important Aspects
A starter home is not going to have a big beautiful kitchen and four bedrooms. The point of a starter home is to find something that works for the buyer at that moment and then down the road, they can sell it to invest in a larger home.
To get a starter home, a buyer should consider what is most important to them in buying a house and do away with the little aspects that can wait.
Choosing the Right Area
Some people are thinking five to ten years down the road when purchasing a starter home. While it is good to think of the future, it may not be the aspect to concentrate on when buying a starter home. Many buyers will sell their houses before school districts or other aspects come into play. This can make it silly to base a purchase on something that is not needed at the time.
Getting Offers Noticed
In a competitive market, it is important to have a leg up on the competition. This is why home buyers should always come to the table with a pre-approval. This will be a signal to the home sellers that the buyer has already talked to the bank and secured a loan. They have reviewed their ability to get a loan and the bank has looked at their finances. The bank then tells the buyer what they will offer them for a mortgage and the buyer can start searching for homes that fall under that price range.
First-time home buyers may feel lost in the world of real estate. While it is a difficult process it is worth it in the end to find a great starter home. Being ready to put in the work to prepare for all that buying a home entails will make the process easier. And one important step in this process it talking to a bank early. A prepared buyer will find it much easier to buy a house if they are not too picky about their criteria of what makes a great starter home.