4 Things to consider when purchasing a home in 2024

With affordability declining across the country, the goal of attaining a home is becoming a distant dream for some. Aside from advocating for cities to adopt policies that encourage more construction, there are several other strategies we encourage homebuyers to consider when purchasing in this market: 

Consider a smaller footprint

The pathway to a forever home looks different for everyone. Consider homes that fit your current situation, not where your life may be in 10 or 20 years. A lot can change in that timeframe, so it’s prudent to make decisions based on the known. While we may not know what will happen to interest rates, one thing that’s certain is the price of land continuing to rise over time. The hurdle to homeownership is higher the longer you wait. Entering the market with a smaller footprint provides the stability and equity growth needed to purchase another home in the future. Whether through renting and refinancing to use equity for a down payment, or selling the home to roll proceeds over to the next home, a starter property is a great way to reach future goals while maintaining some flexibility for the future. 

Consider subsidy programs

Subsidy programs that offer down payment assistance and other incentives have always been around, but weren’t widely used over the past few years. Money was cheap and the market was competitive, so many people overlooked these programs out of shame or fear of hurting their offer. Now that we are in a more balanced market, these programs should be a part of the discussion. Not only do they help with upfront costs, they can also lower monthly payments without a lot of red tape. Cities want more homeowners, and lenders have Community Reinvestment Act dollars to lend. Now is the perfect time to leverage subsidy programs in the homebuying process. 

Consider the location

Real estate is all about location,location, location so it only makes sense to consider the area you wish to live in. In places like Houston, you don’t have to sacrifice lifestyle and culture for location. Think about the trade offs in commuting and your quality of life when choosing urban, rural, or suburban living. While they all come at different costs, they all provide something very different. For example, it may be more costly to live in an urban area, but the time and money you recoup by eliminating the commute may be worth the sacrifice. In some cases you may not need a car, eliminating another expense that suburban living does not allow. 

Consider your Realtor

In order to navigate the current market it’s important to have the right real estate professional. Considering a smaller footprint requires the knowledge of different housing types and the right issues to address in negotiation. Considering subsidy programs requires intimate knowledge of different program rules, and how they might work together. Considering the area requires an understanding of local knowledge that might affect the purchase in the short and long term. With all this said, it's important to hire an agent or broker that has experience in the area, home type, and financing options that you’ll need to purchase a home. They’ll be able to connect you with the appropriate people and resources to make the journey easy.

Purchasing a home looks different than it did just a few years ago; it's going to take a shift in how we think. Whether taking an investor, minimalist, or conservative approach, those who pivot quickly will be able to take better advantage of future gains in the market. We’ll be providing individualized purchasing strategies at our Home Buyer bootcamp on January 27th to help you do just that. If you are unable to make it and are considering purchasing a home in the next 6 to 12 months, contact us to schedule an appointment to receive a complimentary home buying strategy.