Before you can begin preparing your moving checklist, you first need to secure a home to move into — but that is easier said than done. The housing market, although improving, is still rocky. Mortgages are high, and inventory is only starting to grow. How are you supposed to find a house in your budget in these conditions?
It may feel like an uphill battle if you’re after a typical home, but there are a few tricks to help you find the house you want at an affordable price.
Remember Your Budget
It’s obvious, but setting a budget and sticking to it is the easiest way to find a house you can afford. Set a maximum price, and look only at homes that fall at or below that price. It’s OK to look at a home that’s slightly over budget if it really speaks to you, since your real-estate agent may be able to haggle the price a bit lower. Just don’t consider anything more than a couple thousand dollars over budget.
Look Elsewhere
You may have your heart set on a certain location, but don’t be afraid to broaden your horizons. Look at available listings in neighborhoods near your target destination. You may find the homes there more affordable. The same goes for moving out of state or to a new city. The housing market may be thriving in one area but less flexible in another. Overall, though, it’s important to…
Be Willing to Compromise
This is the trick to everything. Anyone who has watched a single HGTV show knows about the house wish list. You should be willing to sacrifice some of your wants for the sake of budget. Walk-in closet? Multiple-car garage? A spacious backyard? Those may drive up the cost of the home, leaving you stranded.
The solution is to make a wish list, but divide it into sections. “Must-haves” are exactly that: the dealbreakers you need in your new home. Examples may include location, school district, and the number of bedrooms. “Wants” are features that would be great to have, but aren’t strictly necessary. Features such as stainless-steel appliances and a laundry room go in this section. Finally, “desires” are features you’re neutral on, but wouldn’t object to having. Finding a compromise between your dreams and reality is the key.
Consider a Roommate
The best way to pay less rent? Have someone else help out! A roommate can ease the burden of paying the mortgage or rent solo. You may also want a roommate for assistance in cleaning and repairs. Humans are sociable creatures too; living alone may not be ideal for everyone. If you decide to find a roommate, be sure to check their history. You don’t want someone untrustworthy living under the same roof.
Negotiate
Your real-estate agent may be able to get you a lower price on a house, but that doesn’t mean you can’t try too. People looking to rent an apartment or house can attempt to negotiate a lower rate with the landlord. It’s important to remember that the landlord is a business owner, and your business — even at a discount — is still profitable. Bring in statistics and examples of rent in similar housing environments. Be firm but not pushy. The landlord should at least be willing to discuss options with you.
What If That’s Not Enough?
The housing industry is in a poor state for homebuyers. The few available homes are frequently out of budget for average Americans, and it’s even harder for disabled people or those with lower incomes. If you fall into one of those categories — or you’re a senior citizen — you may be eligible for affordable housing.
“Affordable housing” in this context refers to the low-income housing opportunities funded by the U.S. Department of Housing and Urban Development (HUD). There’s also the Housing Choice Voucher Program, formally known as Section 8. You’ve likely seen a community of affordable housing in your city. To be clear: There is no shame in getting assistance for housing. These programs are in place for a reason. Let’s go more in depth about the programs in question.
Affordable Rental Housing
HUD currently supports three types of affordable rental housing. The first is privately owned homes, subsidized by landlords. For these homes, the government pays the landlords directly in return for the landlords offering tenants a reduced rate on rent. You can apply directly at the management office of eligible apartments. The government can also help with emergency rent coverage or emergency housing, in the event of an eviction.
Public Housing
These are state-owned rental apartments or homes with affordable rates. They are intended for low-income families, senior citizens, or people with disabilities. There’s a wide variety of options for public housing. You can find apartments in downtown skyscrapers or single-family homes in the suburbs.
It’s the most flexible option HUD offers, and it’s also the most popular. Unfortunately, high demand and a limited number of available homes can lead to long wait times. If you decide to look into public housing, prepare to be put on a list or even outright dismissed. A local public housing agency may close the wait list if there are too many applicants, so you should consider other options if you’re in a rush for housing.
Housing Choice Voucher Program
Until recently, this program was known as Section 8. It’s another program that helps low-income individuals or families and senior citizens with disabilities. Eligible people will be able to choose from several kinds of housing, including townhouses, apartments, and single-family homes, and the voucher will help pay some or all of the rent. This government program is also funded by HUD.
Other Programs
State agencies, such as social services, may be able to assist you with your rent. Even if you aren’t eligible for government aid, there may be community programs to help. Contact your public housing agency or state housing finance agency for more details.
The Bottom Line
Affordable housing may sound like a myth, but it’s still possible to find in 2023. It may require accepting assistance or compromising on your desires, but there are ways to find the home you need on your budget if you’re willing to put in the effort. It may end up being the home of your dreams!