To save on the costs of owning a home and to have more options, a first-time homebuyer may want to look at smaller homes, fixer uppers and cheaper commutes to work to save on the costs of buying and owning a home. Many first-time homebuyers expect more than what they can afford when looking for a new home. Once they start looking, they tend to get very discouraged. Move-in conditions tend to be on the top of the list for 81% of first-time buyers. Only 7% consider a fixer-upper.
Many real estate professionals will agree that buyers should examine the fixer-upper option to get the affordability they want. Once upon a time, first-time buyers bought older homes to save money and break into homeownership. Today, that's just not the trend. First-time homebuyers should remember that a fixer-upper can build equity over time. They can later move on up to a second stage home or their dream home.
When househunting, look for homes that have been heavily discounted. These homes are more likely to need some fixing up than homes than aren't discounted. Be sure to get the home professionally inspected to determine what fixing up is necessary so you are not biting off more than you can chew.
Most fixer-uppers will need a basic face lift, like carpet, paint, landscaping and other cosmetic touches. When buying a fixer-upper, you will have to weigh the pros and cons from the price of the home to the cost of improvement. Most first-time buyers want a large home to start off. But bigger doesn't always mean better when it comes to price. Many times, a smaller home can come with much more affordability.