You have the dream of that perfect home all lined up in your head. Granite Countertops, shiplap, acreage and privacy all tucked into a white picket fence. But then you realize that house is listed at 1.5 million. And the homes in your budget are all less than perfect. How do you decide what is worth compromising on when you’re a home hunter on a budget? In this video we’ll cover what you should make sacrifices on and what isn’t so important - without getting a divorce in the process - so that you can be sure you buy the right home for the right price.
If we haven’t met before, My name is Lucy Hood and I’m a top producing Realtor here in the East Tennessee Region. It’s my mission to help you build wealth and understanding through real estate right here in the Smokies.
- Downtown vs. Countryside
- Discuss what’s important to you - before the first look on Realtor.com. It may be that your partner is keen to move out to the countryside while you love the city. Alternatively, you would like to start a family in your new place and want to choose somewhere close to good schools, but your partner’s priority is an easy commute to work. These are the big, long-term life goals that should form the foundation of any house search – and the time to have a discussion about said goals is well before you even begin looking.
- Homes in the countryside and farther away from denser populations will ALWAYS give you more bang for your buck. So if being in the middle of town close to work and schools isn’t a necessity for you, that is where you’ll get your biggest bargain in shopping. I had some clients that bought a castle of a home for peanuts because it was way out in Baneberry Tennessee, which is on the other side of dandridge. There’s nothing wrong with Baneberry, all 1000 residents have golf carts. The smaller population will always make your dollar go farther in getting a home.
It’s no secret that the current property market is a seller’s market, and it can feel as though the only way to get ahead of the competition is by offering more on a house you really want. It may be tempting to buy above your budget if you find a home you love, but doing so can lead to long term problems. Getting in over your head can quickly turn a dream house into a nightmare. It can be painful to step away from a property that’s a little too expensive, you will find something similar for less elsewhere, you’ll just need to be patient and decide what you can really sacrifice on. Home shopping all comes down to 4 things.
- Cosmetics are easier to fix than you think.
If you see a home that checks all your boxes but is covered in Aunt Ethel’s wallpaper, brass, and wood paneling - don’t look at it as such a deal killer. These are all things that are way cheaper to fix than you think. Especially if you’re willing to put some sweat and youtube research in. That’s how Stefan and I flipped our first house! And if you ever get in over your head - these aren’t necessary to live everyday life so calling in a professional after you’ve tried is an option too. Price, Location, Updates, and Size.
Think of it like a scale, when 1 attribute is lacking, it makes room for the others to be better. For example, when the location is out in the sticks, you’ll get a bigger, better looking house for a decent price. If it’s the same price in the city, it’s going to be smaller and less updated, and maybe even priced higher.
I highly recommend putting these 4 things in order from which is an absolute need and what isn’t. If the location, updates, and size aren’t what you’re looking for in your price range - you may need to bump up your price to find something to check all your boxes.
Now that you know location and updates are some of the best things to compromise on when searching for a home. There are still major problems that could be lurking in plain sight like Sinkholes, Foundation Issues, aging a roof and more. View properties like a pro after watching our video next week, where we’ll discuss the top 3 tips to view properties like a Realtor.
Click the like and subscribe button to stay up to date on all things real estate in East Tennessee or feel free to schedule your very own Buyer Consultation 865-264-0517