Yahoo Finance 8 Features You Might Need To Sacrifice To Afford a Home
The real estate market is forever evolving, but the last couple of years have been challenging for homebuyers. Low inventory, high mortgage rates and soaring house prices have put homeownership out of reach for many, but adjusting expectations can make a huge difference.
GOBankingRates spoke with several real estate experts who revealed that with a few adjustments, buying a home can be more affordable, offering a glimmer of hope in the current market.
Housing Market 2024: Home Prices Are Plummeting in 10 Formerly Overpriced Housing Markets
For You: Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
“Remember, your next home doesn’t have to be your dream home,” Yawar Charlie, senior real estate agent, director of Aaron Kirman Group’s estates division and a cast member of CNBC’s “Listing Impossible,” said. “Smart sacrifices today can lead to your ultimate dream home tomorrow.”
Wealthy people know the best money secrets. Learn how to copy them.
Layout
You might not get the perfect floor plan you envisioned, but Lauren Hurwitz, a licensed Realtor with Compass in Westchester County, New York, and owner/CEO of MediaHouse, said you could save a lot of money going with an architectural style featuring a less desirable layout.
“Layouts from the 1950s and 1960s, like split-levels and high ranches, are often less desirable than the colonials and will make getting a home in the location you’re aiming for more realistic simply because the layout isn’t as traditional,” Hurwitz explained. “We are talking about significant differences simply based on layout alone.”
Hurwitz noted that in her market, the same size home and lot might be $150,000 less, if not more, on a split-level than with a colonial.
Check Out: Cheapest Places To Buy a Home in Every State
Size
Size can be a dealbreaker for many, but Jonathan Adams, assistant professor of practice in real estate finance at Saint Joseph’s University, explained, “If you are weighing size vs. location, pick location. Pay up to live in a community you want to belong to. When conditions change, you can trade up in size. Until then, the value of a good location is more stable than the value of a large house.”
New Construction
While it’s nice to have a brand new home, it’s also not budget friendly, according to Larry DeVardo, salesperson with Coldwell Banker Realty.
In the New Jersey market where DeVardo sells homes, “these homes are going to command a high price and will have multiple offers, which forces the buyer to increase the purchase price to win the bid,” he said.
Prime Location
The conveniences and amenities you get with prime locations are nice to have, but they come at a high price.
“When my husband and I were looking in L.A. for our first home in 1990, we started out in the Glendale/Burbank area, to be close to both our jobs,” Beth Rustigian, Realtor, Keller Williams East Bay, explained. “We quickly found out that home prices there were out of our reach. We ended up purchasing a total fixer clear across the Valley in Northridge.”
High-End Finishes
High-end finishes add a touch of elegance to a home but also increases the price.
“High-end finishes, such as granite countertops, hardwood floors and custom cabinetry, can significantly increase the cost of a home,” Beau Blankenship, real estate advisor and owner of Engel & Völkers 30A Beaches, said. “Opting for standard or mid-range finishes can reduce the purchase price, making the home more affordable. Buyers can always upgrade these finishes over time, as their budget allows.”
Swimming Pool
Lounging by the water on a hot day is a relaxing way to spend time, but skip the pool.
“If your budget puts you on the precipice of not being able to afford a home in your area, take homes with a pool out of the mix,” said Terri Hayley, a Realtor with eXp Realty in North Texas.
Hayley, who uses the social media handle @wearetexasrealestate, added, “If you want to at a later date add the pool, you can do it when you’re able to afford it.”
Large Closets
Walk-in closets are a luxury you might have to live without for the time being.
“We all dream of closets the size of department stores, but they come with a hefty price tag. Go for clever storage hacks and maximize every inch of space you’ve got,” Charlie stated.
Extra Bathrooms
Having multiple bathrooms make things so much easier, but they’re pricey.
“Extra bathrooms are great for avoiding morning traffic jams, but they add serious costs. Prioritize what you need now and leave room for future upgrades,” Charlie said.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 8 Features You Might Need To Sacrifice To Afford a Home
