Real Estate Experts: 7 Things To Compromise On To Save Money When Buying a Home
Once the hallmark of the American dream, buying a home and mortgage rates in general are no longer affordable for many. Younger generations including millennials and Gen Z tend to struggle the most; despite wanting to buy, they’re often cornered into renting because they don’t have enough money.
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Between high interest rates and low inventory, times are tough for anyone who wants to take the plunge and buy a home. However, there are moves hopeful buyers can make to lessen the financial pressures. Those looking to nab their first home should consider seven things real estate experts think they can (and should) compromise on to save money.
Garage
No arguments here: garages are great. They not only offer shelter for your car but also give you valuable storage space. But this all comes at your pocketbook’s expense.
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“A big feature a lot of couples compromise on to save money on a home is a garage,” said Rebecca Hidalgo Rains, CEO and managing broker at Integrity All Stars at Berkshire Hathaway Home Services. “An enclosed garage typically adds value to a home so if you are trying to buy a house with a garage you are paying extra for that garage. A lot of couples are willing to compromise by buying a home with a car lot instead which can typically save you anywhere from $10,000 to $35,000 depending on the quality of the garage.”
Rains suggests instead purchasing a home with a carport and converting that into a garage later to enhance the home’s value.
Swimming Pool
Homes with swimming pools are not only generally more expensive upfront, but they’re also costly to maintain.
“Many homebuyers often want to buy a home with a pool but decide against it when they have to pay more for a home to have one,” said Rains. “Not buying a home with a pool will save you money upfront and also save you a lot of money in pool maintenance fees. For many homeowners, the idea of having a pool is not as enticing as the money you save by not having one.”
Finished Basement
Ideally, you’ll want to buy a home with a finished basement. But you should seriously consider compromising here and, instead, buying a home with an unfinished one. This will likely save you money.
“Many people really want finished, furnished basements so that they have more space to entertain, host guests and simply live in their home,” said Seamus Nally, TurboTenant CEO. “However, a finished basement can significantly increase the market value of a property – it’s one of the best home improvement projects from an ROI perspective. While it’s not exactly cheap to do the renovations yourself, you can often save money by going that route rather than buying a more expensive home upfront that already has a finished basement.”
Full Bath
Homes with two full baths are more desirable than those with only one, understandably — but they’re also usually more expensive.
“You can compromise a half bath for a full bath if the home already has two full baths,” said Mark Worthington, branch manager and senior loan officer at Churchill Mortgage.
Yard Size
With more and more people buying homes to accommodate both their and their dog’s needs, big yards are hotter commodities than ever. But it’s wise to be willing to compromise on this desire.
“Smaller outdoor spaces can reduce the purchase price and maintenance costs,” said Daniel Smith, CEO and founder at Keepingly.
Open Floor Plans
Open floor plans give a sense of spaciousness and openness and are all the rage, playing big into the home’s price.
“Homes with traditional layouts come at a lower cost and can be renovated to create a more open feel in the future,” said Smith.
Location
Location, location, location! It’s often a major factor we consider when searching for a home to buy, but being flexible here can save you money.
“Location is crucial, but being open to neighborhoods slightly outside your preferred area can lead to substantial savings,” said Smith. “Sometimes, the difference of a few miles may significantly affect the price.”
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This article originally appeared on GOBankingRates.com: Real Estate Experts: 7 Things To Compromise On To Save Money When Buying a Home
