South Gate Sarasota, Florida

As a homebuyer, you probably started out with a dream of the perfect home you wanted to buy. However as you searched the market, reality set in, and you had to lower your expectations on the square footage, location or some other feature. Instead of a five bedroom home, you had to settle for a three bedroom with some of the kids sharing a room. Or maybe you had to sacrifice the large family room for a smaller one.

While you may not be thrilled about giving up some major features in your wish list, there are other effective strategies for finding a good starter home. You can drive around town and locate up and coming communities where homeowners are performing extensive remodeling or renovating their landscaping. You can usually pick up a good home at a reasonable price. You can also search out the local artist communes. These areas tend to redevelop into a popular part of town.

One main advantage of buying a starter home is the ability to get into the real estate market and begin building equity. While a starter home may not possess every feature you want, it gives you the opportunity to build equity for a better house in the future. This technique is suitable for homebuyers who anticipate a rise in income in the future. While being able to save money can help you buy a better home, you can still use the equity from your starter home to move into a larger one. Despite the advantages of owning a starter home, there can be drawbacks you need to know about:

1) Puts A Dent In Your Savings - Buying a home is one of the largest investments you’ll ever make. You’ll have to put a large sum down, plus there will be other expenses such as: moving costs, closing costs, property inspections, property appraisals, and realtor commissions.

If you think buying a smaller home in a nice neighborhood will save you money, you may be in for a surprise. Land costs in nicer areas can be expensive depending on which community you plan to buy into.

2) Get The Right Mortgage - If you can, be sure the mortgage you’re applying for doesn’t have a prepayment penalty. This gives you freedom to sell your home anytime or pay the loan off early. If possible, find a loan with low or zero points as this will keep more money in your pocket.

3) Be Prepared For A Down Market - With today’s tough real estate market, be prepared for a possible drop in value over the next few years. This means you won’t have much equity and may have to sell your home for a loss. Be prepared for a potential loss or a tough time moving into a larger home.

Even with these disadvantages, a lot of homebuyers continue to get into the real estate market by purchasing a starter home. They know the joys of being a homeowner far outweigh the potential problems.

If you’re searching for the perfect starter home in Southern California, check out these local Anaheim Realtors and Anaheim Hills Realtors to help you find one.

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