What's the Cheapest Way to Buy a House? 5 Methods That Work

Posted by Casandra Properties on Thursday, January 2nd, 2020 at 10:19am.

It's no secret that buying a house is one of the biggest investments most people will ever make in their life. However, your mortgage doesn't have to break the bank or lead to financial strain each month. 

Most people let the material things in their lives define them. How nice their car is, how big their home is, etc. However, most people in our country struggle to make ends meet each month.

Avoid being part of the 78 percent of Americans living paycheck to paycheck. Instead of maxing out your budget on your home, consider exploring the cheapest way to buy a house. 

Don't know how? No worries, we'll explain.

1. Consider a Fixer Upper

First, don't allow yourself to be frightened away by the prospect of a little work. While we don't recommend getting into a home that's barely liveable, you also don't need one that's got a high-end finish from floor to ceiling.

Homes that need work sell for much less. Whether it's DIY work that will primarily require time and effort or contract work that you can take care of in the future, people sellers won't be demanding top-dollar. Just make sure it's thoroughly inspected so you know exactly what you're getting into.

2. Lose the Mindset That Bigger is Better

Many homeowners automatically assume that size is everything. The first question is often "How big is the house?"

Lose this mindset and consider how much space you actually need versus how much you want. In reality, most people only use a small percentage of their living space and the rest of the house is neglected.

3. Look at Foreclosures

When looking for the cheapest way to buy a house, consider looking at houses under foreclosure. However, make sure the house is well inspected. Homeowners who are foreclosed on have a reputation of trashing the home before they leave.

Additionally, if they couldn't afford the monthly payments, they probably couldn't afford maintenance and repairs either. However, banks often want these homes off their hands and will sell them at a reduced cost.

4. Look at Time on the Market

A key to finding the cheapest way to buy a house could be found in hiring an experienced realtor who knows the market. For example, the realtors at https://www.jprealestateexperts.com/arrowhead/ would tell you to check how long homes have been on the market.

Homes that don't sell quickly could mean a few things:

  • The market has been slow
  • There's something wrong with the house
  • The seller is extremely motivated to sell

These factors can all lead to you buying a house and getting an amazing deal.

5. Consider a Short Sale

Finally, you can look at short sales in an attempt to save money while buying a house. A short sale is a way for a bank (and homeowner) to avoid a foreclosure. In this case, the homeowner has taken out liens against the house and any sale of the house will fall short of their total loan but can be approved by the lender.

This could lead to you saving a few thousand dollars or tens of thousands of dollars, depending on the loan and the lender.

Looking for the Cheapest Way to Buy a House?

Buying and selling homes is an art form. If you're looking for the cheapest way to buy a house, why not hire an artist who specialized in that field? Take a look at some of our listing or contact us to get started!

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