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With record home sale prices in neighborhoods all over the Long Branch, New Jersey area, some home buyers have become frustrated as they watch their buying power erode month by month. The good news is that by reorienting yourself and shifting your focus you may still be able to find a home that youâll love at a price you can manage. Hi Iâm Michele Irizarry, CEO and Broker of Shore Prime Properties. Please be sure to like the Shore Prime Properties Pages on Facebook and Linkedin and follow our YouTube channel to stay up to date on the latest real estate tips. These strategies can help make homeownership more affordable even in todayâs hot real estate market.
Get the best possible financing deal: Even as prices rise considerably, low interest rates are keeping monthly payments manageable. Make sure youâve optimized your credit score and compare rates and financing scenarios from a number of lenders before you sign on the dotted line. Just a small difference in closing costs or mortgage rate can make a big difference in housing affordability.
Develop an eye for the possibilities: We all watch TV shows where house hunting individuals and couples reject a place because of the carpet or the color of the living room walls. In order to find a bargain in todayâs market, youâll need to be a bit more open-minded. Take time during your home search to focus on what works rather than what doesnât in the home that youâre considering. Look past elements that are easy to fix such as paint color, light fixtures and flooring and make your decisions based on the bones of the house, its location and its livability.
Focus on progress, not perfection: In a buyerâs market, choosy home buyers can look for a turnkey move-in-ready property and demand a host of repairs and updates when negotiating in a tight sellerâs market- however, this is rarely the case. Remember your house can still become your dream home even if itâs not perfect on day one. In this market you need vision and a focus on progress in the months and years ahead. Remember part of the fun of homeownership is the freedom to do what you want and make your home a reflection of your personal aesthetic and lifestyle.
Look for opportunities to add value: Perhaps the home youâre looking at doesnât have the incredible outdoor space youâve been dreaming of. By creating one yourself, Â you can instantly add value to the home and accrue additional equity. Maybe the baths are outdated. You donât have to bring them up to speed on move-in day. Take the time to enhance and renovate your new home with an eye towards subsequent resale value. Rethink your wish list: Look at your wishlist and consider what truly matters to you and your family. Perhaps those granite countertops are not as important as a big backyard or maybe being walking distance from school matters more than the location of the laundry room. By shifting your focus to the unexpected benefits of a home, you may find that you can easily give up some bells and whistles in exchange for things that matter more.
Reconsider your neighborhood options: One easy way to make homeownership more affordable is to consider a wider variety of neighborhoods in your target market. Talk to a trusted real estate professional about the things you are looking for in your neighborhood and find if there are less expensive options that still give you some of those advantages. Thereâs more than one hip in-town enclave. Thereâs more than one tree-lined, family-friendly community. Expand your search to similar spots throughout your metro area to give yourself more choices.
Give yourself a longer timeline: Improve your chances of finding a bargain by giving yourself more time to explore opportunities in your market. This could include short sales and foreclosures which often require an extended timeline for negotiating with the bank or mortgage company holding the property. Remember the old saying, â Haste makes wasteâ and donât let a self-imposed short turnaround and hasty decision making keep you from holding out for a home that fits your budget. Take advantage of remote work opportunities: One of the big changes to come out of the pandemic is the increased availability of remote work opportunities. For many professionals that opens up a whole world of possibilities when it comes to a choice in neighborhood. If you no longer have to focus on your commute it may be time for you to consider a home in an outer suburban or even rural area of your market. You may be able to find a home with more square footage, more outdoor space and a more relaxing lifestyle for less money than you ever thought possible.
Consider house hacking: House hacking is a favorite technique of real estate investors to make your home budget go even further. It involves purchasing a home with investment potential and then living in one part of the property while renting out the other. For example, you may want to purchase a duplex and rent out the other side. You may also purchase a home with a lower level in-law suite and turn it into a rental opportunity. If your area allows accessory dwelling units you may want to add one to your home and convert it into a cash flowing apartment. Any of these options can help offset the cost of your mortgage each month or in some cases help you pay it all together. The Jersey Shore is a popular resort and vacation spot and you may want to make your rental property short term or seasonal. That could allow you to bring in extra income without the commitment of being a full-time year-round landlord. Be sure to check your local and homeowners association rules and regulations to determine if there are limits to your ability to rent out your property.
We know how tough this market has been for buyers lately. Hopefully these tips can help you to readjust your mindset and expectations to find a home that is affordable for you. If you need help in any way we are happy to help guide you through the home buying process. Feel free to reach out to us here at Shore Prime Properties. Iâm Michele Irizarry, selling prime real estate at the Jersey Shore.
