How to Buy a House Cheap

Three Money Saving Tips to Help You Buy a House Cheap 

You can find a house cheap by searching for houses that have been on the market longer, houses that need renovation, and houses located in less expensive areas.  

Buying a house for cheap isn't impossible. There are many houses for sale with affordable price tags. The secret to finding these houses begins by aligning your expectations with your budget. 

The perfect house isn’t necessarily the one with a three-car garage; it’s the one that you can comfortably afford to pay for while building equity.  While most people choose a house based on the number of bedrooms, finding a house within limited finances requires thinking outside the box. Here are three money saving tips to help you uncover the deals that most buyers pass by.  

Look for houses that have been on the market longer 

When researching houses online, notice how many days a house has been on the market. This information can help you target houses that are ripe for price deductions.  

The most advantageous time for sellers to get full list price is immediately after the house hits the market. The longer the house sits, the less chance they will get their list price. Many houses begin to undergo price reductions after being on the market for several weeks.  

If you find a house that has been on the market for a month, it’s possible the seller has received some low offers but has declined them. As time progresses, however, a seller may be more willing to accept an offer that is less than their desired price.  

The most favorable time for you to get the best deal on a house is after it has been on the market for more than ninety days. This is when sellers typically make significant price reductions to their listings. 

Look for houses that need renovating 

Houses that need repair work or that are being sold “as is” can be diamonds in the rough. Most buyers find it difficult to look past a home's outdated features. They want a move-in ready house that requires little elbow grease. But with vision and some sweat equity, you can take an outdated house and turn it into a great home for your family.  

One of the best ways to build equity in a house is to find an older, unimproved house in an area that is in the process of being revitalized. Perhaps there is a brand-new development down the street, or the house next door was recently renovated. These are signs that houses in this area will increase in value.  

Looking for a rehab ready house does come with risks. Ugly wallpaper and outdated kitchens are easy repairs compared to more extensive issues such as older septic systems or structural cracks. Always use home inspectors to protect yourself and your investment. 

Look for houses in less expensive locations 

Looking at houses in areas that are less expensive can be a home run for you if you are planning on living in the house for an extended period of time. It’s a great way to save money and build equity over the long haul.  

Consider purchasing a house in these locations: 

houses in older neighborhoods 

houses on busy roads or highways 

houses near fire stations, hospitals, or airports 

houses next to power lines or cell towers 

houses in business or manufacturing zones 

When touring some of these properties, you may want to visit during different times of the day and night to evaluate noise and light pollution. You want to make sure you will be happy living there and that it will benefit your lifestyle, not just your wallet. 

What about foreclosed houses?  

Foreclosed houses are houses that have been repossessed by the bank or lender because the owner stopped making mortgage payments on the property. Many buyers think they can get a good deal on a foreclosed house. However, banks are notoriously slow to drop their list price, so this may not always be the cheapest buy.    

If you’d like more money saving tips to help you buy a house, check out Todd’s Simple Home Buying Course. Being an educated home buyer can protect you from making the wrong choices when shopping for a house. With Todd’s fourteen comprehensive home buying lessons, you’ll be more prepared to make the right decisions for your investment. Order your course today!