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Easiest place to buy a house


10 Most Affordable Cities To Buy A Home – Forbes Advisor

Updated: Oct 13, 2022, 4:04pm

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One of the main reasons people buy a home is to build wealth. The common line is: “Why pay someone else’s mortgage and contribute to their equity (via rent) when you can spend the same amount of money or less and reap the rewards?”

But, if you’re in a pricey area, that wealth can quickly get eaten up by a mortgage that resembles a tapeworm—constantly sucking up funds as your bank account shrinks. This is what’s bluntly referred to as being “house poor.”

If you live in an expensive metro, you can eschew the tiny house with a huge price tag and move to greener—and cheaper—pastures. After all, cheaper doesn’t necessarily mean worse.

Read more on home affordability:

Forbes Advisor looked at 100 metro areas with a population of at least 100,000 to identify the top 10 most affordable cities for homebuyers. We looked at several factors to gauge affordability, including the median income of that city, average home costs and median real estate taxes.

“When I saw the list, I smiled. It’s a perfect example of undervalued markets,” says George Ratiu, senior economist with Realtor.com. “These are not boom-and-bust cities, they have long-term economic growth potential.”

1. Detroit, Michigan

The Motor City tops the list of most affordable places to buy a home. Despite the median salary being among the lowest of the affordable cities on this list, so are home prices. In fact, median earners in Detroit will spend just about 6% of their monthly income on mortgage payments, which is extremely low.

Although Detroit has suffered major blows over the years—a failing car industry, racism-fueled out-migration to the suburbs and blighted neighborhoods caused by the Great Recession—Detroit has been on the upswing for the last few years.

Major companies like General Motors, Ally Financial and Quicken Loans are headquartered in Detroit. Big tech also has a presence there, including Microsoft, Google and LinkedIn. And most recently, Apple announced it would partner with Michigan State University and open its first North American developer academy in Detroit.

“Detroit and the surrounding areas have always been an amazing place to live, work and play. Belle Isle Park was designed by the same group that designed Central Park in New York City,” says Randolph Barker, president of the Detroit Association of Realtors. “Our food offerings are diverse and reflect the blended culture of the city. Some of the best things I have ever eaten can be found in Mexicantown, Greektown, Midtown, Corktown and Downtown.”

2. Cleveland, Ohio

Cleveland is not only an affordable city, but it’s a young one, too; the median age is around 36, which is just under the national median. What makes Cleveland special is its liveliness. Situated on Lake Erie, people there enjoy water sports and boat parties.

For nature lovers, there’s an extensive network of nature preserves that surround the city and encompass the Lake Erie beaches. The Cleveland Metroparks system boasts more than 300 miles of walking, bicycle and horse trails, plus picnic areas, nature centers, golf courses and fishing areas.

It’s not just fun and games, however, as the economy in Cleveland is solid and growing. A new public-private partnership between the state of Ohio, three hospitals and two universities, known as the Cleveland Innovation District, is projected to create 20,000 jobs in the next decade.

“Cleveland was not as impacted by the recession caused by the pandemic as the rest of the country,” says Dena Cipriano, senior manager, communications and media relations at the Greater Cleveland Partnership. “The Cleveland metro has a lower unemployment rate than the country as a whole. And we have the second highest growth in the inflow of technology workers of any major metro area during the pandemic.”

3. Toledo, Ohio

Geographically, Toledo is in a prime location. Located on the Western end of Lake Erie, it’s a one-hour drive to Detroit, a two-hour drive to Cleveland and about four hours to Chicago.

Although Toledo has struggled with a depressed economy since the 1980s, in recent years the rust belt city has made strides toward a better future.

According to a report by the Federal Reserve Bank of Cleveland, Toledo saw the most employment growth in construction (6.4% between March 2018 and 2019). Additionally, employment in the financial activities sector also saw positive momentum, as it “grew faster in the metro area (at 1.4%) than it did in Ohio (0.6%) and in the United States (1.3%),” according to the report.

Home to Bowling Green University and the University of Toledo, there are almost three dozen universities and higher learning institutions situated within 60 miles of Toledo, which is an impressive concentration of potentially high-skilled workers.

Toledo’s largest employers include Owens Corning, the Toledo Clinic and HCR Manor Care.

4. Memphis, Tennessee

Memphis is home to about 650,000 people, and the median age is around 34. In fact, this Mississippi Delta city might be primed for a tech surge.

Anthony Young, capital executive in residence at Epicenter, a non-profit designed to support entrepreneurship in the greater Memphis area, recently told the publication AfroTech that Memphis is outpacing other metropolitan cities in terms of Black-owned businesses accessing venture capital. In the Memphis area, some 16% “of early-stage companies accessing VC have a Black founder (it’s about 1% nationwide), and 13% of invested startup capital has gone to companies with a Black founder.”

“Memphis is investable. Memphis outperforms our national peers in capital investments, specifically as we dig into the percentage of Black-led companies gaining access to capital and the fund’s percentage of dollars invested into Black tech startups,” Young says.

Along with a growing tech scene, FedEx, the Tennessee state government and the U.S. government make up the three largest employers in the region. Memphis also saw a 9.88% increase in per capita income from 2018 to 2019, according to data from the Federal Reserve.

And let’s not forget Memphis’ artistic roots, which rival any city. It’s practically synonymous with music—blues, rock n’ roll and Elvis (this is where Graceland is located). It’s no wonder Memphis has been called “the cradle of American music.”

5. Baltimore, Maryland

Baltimore is home to high-profile employers, including John Hopkins University and Northrop Grumman, one of the world’s largest weapons manufacturers and military technology providers. The government is also a big player in Baltimore’s economy, with more than 18% of workers employed by the federal (145,695), state (99,127) or local (245,253) government.

It’s also in a great location, conveniently located less than an hour from Washington, D.C. Using the MARC Penn line from Penn Station, Baltimore residents are able to work in the much more expensive D.C. without paying high D.C. home prices—in just about eight train stops.

One Redditor had this to say about commuting between Baltimore and D. C.:

“I’ve been commuting from Baltimore to D.C. (Dupont Circle, oddly enough) for 8+ years. Pros: You get to live in Baltimore, it’s cheaper than living in D.C., it can be relaxing when working properly. Cons: Huge time suck, but if you get your schedule downright it can be worth it. I would say, give it a try for a few months and see if you can cope.”

6. Rochester, New York

Rochester made our list of most affordable cities—but it could be poised to become slightly less affordable in the future. According to a recent report by real estate analytics firm ATTOM Data Solutions, Rochester was among the metro areas (with a population of at least 1 million in 2020) that saw the biggest leaps in return on investment (ROI) for sellers in the country, up by 49.9%.

It’s also been on the radar of many housing experts as people leave Manhattan for more space and lower housing costs.

“Rochester made our list of top housing markets from 2019,” Ratiu of Realtor.com says. “You see a lot of spillover from New York City. A lot of people move to New York to start careers in their mid-20s, 10 years later they’re struggling to find affordable housing, so they move to places like Rochester.”

The University of Rochester and its medical center, with 32,000 employees, is the city’s largest employer.

7. Milwaukee, Wisconsin

Located on the western side of Lake Michigan, Milwaukee is probably best known for its beer-making heritage. In fact, Milwaukee was home to breweries before it actually became a city. Some of the oldest American beer makers come from Milwaukee, including Schlitz, Pabst and Miller. Even the city’s baseball team—the Brewers—pays tribute to its roots.

Milwaukee still has a lively beer scene (there are more than 30 breweries in the area), but these days it’s health care that dominates the economy. With nearly 600,000 residents, the top three employers in Milwaukee are all in the health sector: Aurora Health Care (25,900 employees), Ascension Wisconsin (15,500) and Froedtert Health (10,900).

Milwaukee has become an attractive destination for people fleeing more expensive metro areas, including Chicago, according to data from Apartment List. Just over 90 miles north of the Windy City, Milwaukee median home listing prices are almost half as much as Chicago, which was $370,000 in 2020.

8. Montgomery, Alabama

Montgomery Alabama offers the lowest median annual real estate taxes on this list, totaling about $512 per year. Not only is it a great place for low taxes, but Montgomery also offers promising career opportunities.

Montgomery may fly under the radar, says Ratiu, but that might be a mistake. “Broadly speaking, Alabama has a tremendous aerospace industry.”

Montgomery is home to the who’s who of aerospace companies, including Boeing, Northrop Grumman, the U.S. Department of Defense, Leidos, Raytheon and Lockheed Martin.

In fact, Lockheed Martin broke ground on a 225,000-square-foot facility in 2019. The last time the leading aerospace company invested in the area, in 2014, it delivered on its promise of bringing 224 full-time jobs in over five years.

The automotive industry is another big sector in Montgomery, with Hyundai expecting to add 200 jobs in 2021.

“What’s happening in Montgomery is emblematic of what’s happened in the last 15 years, smaller markets are poised for growth,” Ratiu says. “It is a place where a young family can earn a living, buy a home and build wealth.”

9. Buffalo, New York

Buffalo has gone through a major transformation over the last decade, with new restaurants, entertainment, activities and events popping up year after year. This confluence of businesses and community activities has infused the city (known for its harsh winters) with lots of fun and energy, says Amber Wesser, real estate broker at Hunt Real Estate in Buffalo.

“For many years, people would think of New York and think of New York City, that just is not us,” Wesser says. “From a home sale price or rental price, we are drastically more affordable. Not to mention, we have the best food, of all sorts…but I may be biased. ”

The largest city in upstate New York, Buffalo is about seven hours northwest of Manhattan, but, like Wesser says, it’s nothing like the Big Apple. Buffalo’s population is under 300,000 and, although it was once home to more millionaires per capita than anywhere else on Earth, today Buffalo is an affordable alternative to big city living.

According to data from Realtor.com, Buffalo’s median listing price for a single-family home in 2020 was just $184,000—considerably lower than the national median of around $340,000.

10. Kansas City, Kansas

Some of the most affordable areas for first-time homebuyers are in the Midwest, and Kansas City is definitely an example of that. With median listing prices below $200,000, this could be a great area for buyers on a budget.

And if you happen to be in the healthcare field, even better. Health care is the top industry in Kansas City (not to be confused with Kansas City, Missouri).

The University of Kansas Hospital and the University of Kansas Medical Center employ more than 10,000 people combined.

Because of the location and amount of space, manufacturing and transportation also are major industries here.

Affordable Cities Honorable Mentions

  1. Des Moines, Iowa
  2. Fayetteville, North Carolina
  3. Laredo, Texas
  4. Fort Wayne, Indiana
  5. St. Louis, Missouri
  6. Fort Worth, Texas
  7. Indianapolis, Indiana
  8. Jacksonville, Florida
  9. Wichita, Kansas
  10. Columbus, Ohio

Mid-size Metros Might Not Come With Glitz, But They Do Offer A Shot At Homeownership

Ratiu says that while many people focus on the bright stars, like New York or Washington, D.C., mid-sized cities are naively overlooked when it comes to getting both affordability and a strong economy.

Instead of forking over half (or more) of your paycheck on rent, people interested in homeownership can buy a house and have cash left over for retirement savings, the kids’ college funds or even just basic health insurance.

For some, that extra cash might help cross off some of those frame-worthy goals from their wish lists. (We see you, Bora Bora.) You can get all of this by moving to an area that simply costs less.

Of course, moving is not an inexpensive endeavor. And not everyone has the luxury to uproot their lives and plant themselves in a new place. But, as work-from-home flexibilities become more common, moving has become a more viable option.

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Methodology

Forbes Advisor compared 100 cities with a population of 100,000 or more and weighed typical household expenses and home prices against median income to come up with the most affordable cities.

Factors we took into consideration:

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Natalie Campisi is a Los Angeles-based consumer finance reporter for Forbes Advisor. She’s covered a wide range of topics throughout her career—from mortgages and labor issues to elections—for several organizations including Bankrate, the Associated Press and the Tampa Tribune. In a past life, she was an editor for a mechanical watch magazine. Her work has appeared in publications such as CNBC, The Chicago Tribune, and MSN. You can find her on Twitter @nataliemcampisi

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Buying a First Home: Where It's Easiest to Save Down Payment

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Bloomington, Illinois

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If you’re hoping to save up for your first home as fast as possible, the Midwest just might be the best place to start your search.

A new report from RentCafe, a real estate listing and research firm, looked at 174 metro areas to identify the cities where it’s typically quickest to save up for a 20% down payment on a starter home. And the Midwest dominated the rankings.

Bloomington, Illinois — where a median two-person family earns roughly $91,000 per year and the median starter home price is $105,249 — topped the list. By RentCafe’s calculations (using government data as well as data from Zillow), that two-person family can sock away 22% of their income and save enough money for a 20% down payment on a starter home in just one year.

Springfield, Illinois, ranked second, with a timeline of one year and three months to save for a down payment. The median price of a starter home in Springfield is just $81,901.

Seven of the 20 places on RentCafe’s list are located in Illinois, and 14 are in the Midwest. A handful of Midwestern cities including Beech Grove, Indiana, and Grimes, Iowa, also appeared on Realtor.com’s recent list of the best cities for first-time homebuyers thanks to their low cost of living, good job markets and large inventory of available homes.

Most of the places on RentCafe's list are small- and mid-sized cities, though larger metro areas like Washington, D. C., and Baltimore also make an appearance.

Where it’s easiest for first-time homebuyers to save for a down payment

Here are the top 20 cities where it’s easiest to save for your first down payment, according to RentCafe’s analysis, along with the estimated time it would take a two-person household to save up for a starter home in each.

The metro areas below include the surrounding area (occasionally in multiple cities and states) as well as the main city listed.

  1. Bloomington, Illinois: 1 year
  2. Springfield, Illinois: 1 year, 3 months
  3. Cedar Rapids, Iowa: 1 year, 9 months
  4. Trenton-Princeton, New Jersey: 1 year, 10 months
  5. Ann Arbor, Michigan: 2 years, 4 months
  6. Bismarck, North Dakota: 2 years, 4 months
  7. Bridgeport-Stamford-Norwalk, Connecticut: 2 years, 5 months
  8. Fargo, North Dakota-Minnesota: 2 years, 5 months
  9. Madison, Wisconsin: 2 years, 6 months
  10. Des Moines, Iowa: 2 years, 7 months
  11. Hartford-Middletown, Connecticut: 2 years, 8 months
  12. Fond du Lac, Wisconsin: 2 years, 8 months
  13. Champaign-Urbana, Illinois: 2 years, 8 months
  14. Baltimore-Columbia-Towson, Maryland: 2 years, 9 months
  15. Waterloo-Cedar Falls, Iowa: 2 years, 10 months
  16. Washington-Arlington-Alexandria, DC-Virginia-Maryland-West Virginia: 2 years, 10 months
  17. Cincinnati, Ohio-Kentucky-Indiana: 2 years, 11 months
  18. Akron, Ohio: 3 years, 1 month
  19. Decatur, Illinois: 3 years, 2 months
  20. Naples-Marco Island, Florida: 3 years, 3 months

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It won’t be much easier to buy a house in 2022

Last year was tough for first-time homebuyers: One economist estimated that it was taking first-time buyers 10 months longer to save for a down payment in August of 2021 than it did before the pandemic.

Unfortunately, 2022 is shaping up to be difficult too, especially now that mortgage rates are rising to levels not seen since March 2020. Homebuyers should be prepared for the market to remain very competitive.

Keep in mind that while RentCafe’s analysis is based on a recommended 20% down payment, you don’t always have to put 20% down. The typical down payment for first-time homebuyers in 2021 was 7%, according to the National Association of Realtors.

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Best time to buy a house in 2023

If you're wondering if now is the right time to buy a house, consider this: Is now the right time for me to buy a house?
The state of your local housing market and current economic performance provide important context for your selection. However, whether now is the right time to buy a home depends on your financial situation, life goals, and desire to become a homeowner. This post will look at some of the most important things to consider when deciding whether now is the ideal time to buy a home in 2023.

When is the best time to buy a house in 2023?

The best time to buy a house in 2023 is determined by your money, aspirations and personal schedule. The real estate market has its own trends and quirks, but they are not absolute. You'll want to get all of your ducks in a row before you propose a house.

Before you begin the process of buying a home, you must work to get your finances in order. You don't have control over mortgage rates or the real estate market, but you can put in the effort to prepare for a successful home purchase.

Saving on your down payment and closing fees and working on improving your credit score will make the whole process much easier. A higher FICO score and more money in the bank make it much easier to get a loan. But this is not the only advantage. Lenders provide the lowest interest rates for individuals with the best credit.

A larger down payment can also help you save money by lowering your loan to value (LTV) ratio. Your LTV is calculated by comparing the value of the mortgage with the value of the property. For example, a loan of $80,000 for a $100,000 home will have an LTV of $80.80. A lower LTV can qualify you for lower mortgage rates, and if your LTV is less than XNUMX%, you won't need to pay private mortgage insurance (PMI) on regular loans. PMI can cost an average of up to 1% of the total loan each year. So if you have a larger loan, not having to pay on it can save you hundreds of dollars a month.

Also Read: 6 Tips for Buying an Affordable Home

It would also be helpful to know about housing assistance programs in your area. A housing advisor can explain what help you can get with paying a down payment or closing accounts. You can get pre-purchase advice and training from a HUD approved housing advisory agency. These organizations may charge a reasonable fee for pre-purchase consulting services. However, prices are listed in advance. And, according to HUD, if you can't afford it, these services should be free.

When is the best time of year to buy a house in 2023?

Seasonality has a big impact on the real estate market, and common sense dictates that the best - or easiest - time to buy a new home is spring or summer. When children are out of school, the weather improves, household inventory increases, and moving is easier. However, the best time of the year to buy property is determined by which aspect of the purchase is most important to you.

Priority: The most diverse choice

According to Zillow, listings for new homes peak between April and June, with most properties listed for sale between May and August. So, if you want to have the widest choice of housing, spring and summer 2023 is the best time to buy a home. The downside is that houses are also the most expensive during these peak months due to the large number of buyers on the market.

Priority: the best offers

When buying in autumn or winter, there is less competition, which means you can get a better offer. According to Zillow, the months with the least competition for buying a home are from October to December, while the best seasons for budget consumers are late autumn and early winter. In fact, November is the month when the fewest homes sell for more than their asking price. The downside is that as the real estate market slows down in autumn and winter, you may not have many options.

Priority: combination of two

Certain months offer a decent middle ground if your budget is important but you have some wiggle room and want to select a large number of properties. Quicken Loans says buying in late summer or early fall is great because prices usually start to drop after the high season, but there is still plenty of stock available. According to Zillow, August had the biggest price cuts while maintaining healthy inventory levels (less than in the spring, but enough to still give you some options).

The most expensive time to buy a house

According to Zillow, the most expensive months to buy a house are March and May. Because the warmer months are the most popular time of year to buy a home, competition is fierce and buyers are likely to spend more than the asking price.

The more bidders on the market, the more likely you are to run into bidding wars or see houses disappear before you can view them. If you're trying to sell your current home by buying a new one, there's a silver lining: you'll likely get a higher price for the home you're selling at the time.

Based on the economy, is now a good time to buy a house?

The real estate market and your buying decision can be influenced by national, state or local issues. Interest rates, the labor market, and the overall health of the US economy can influence the housing market at the national level. On a more local level, customer demand, the local job market, and the local rental market can influence your buying decision.

When mortgage rates are low, home ownership becomes cheaper, making it a viable option for more people. Even a slight increase in rates benefits from buying bets. Here is an illustration:

The average 30-year fixed rate mortgage is currently 3.8 percent (as of September 2019). Let's say you want to buy a house worth $20,60,000 with a 300,000% discount ($100). Your monthly mortgage payment (excluding taxes, insurance, and other expenses) can vary by more than $400 per month simply due to a one-point increase in mortgage rates:

  • At an interest rate of 3.8 percent, your monthly mortgage payment (basic amount + interest) will be $1,118.
  • At 4.8 percent, your monthly mortgage payment (principal + interest) would be $1,259 per month.

Lower interest rates can also make more expensive homes more affordable for some buyers, as long as you can also increase your down payment to avoid paying private mortgage insurance. For example, with an interest rate of 3.8 percent, you can buy a property for $337,000 with a down payment of 67,400% ($1,256) for $300,000 per month – $4.8 less than a house for $337,000 with an interest rate of $20.00.

Changes in the local market

When deciding on the right time to buy a house, keep in mind that buying when the value of the house rises is always a good option because you will immediately begin to build equity. Of course, the goal is to buy low and sell high. While no one can predict the market, here are some of the indicators that could be the right time to buy – and a decent possible return on your investment:

  • Real estate is being developed in the region.
  • New restaurants and outlets appear.
  • Increasing popularity

Personal factors influencing the purchase of a home

Buying before you are financially ready or buying property at an inflated price could put you at risk of defaulting on your mortgage or losing your home to foreclosure .

Being a homeowner is expensive. According to Zillow, the annual hidden costs of homeownership average 9.080 dollars. This includes taxes, insurance, and utility bills, but does not include landscaping and cleaning, which can cost an additional $3,021 per year.

Purchasing a property that has not been maintained or upgraded can result in additional unexpected expenses, especially in the first few years of owning a home or if major systems in the home fail. A new building is more expensive, but there is less risk of unexpected expenses because everything is new.

Finally, keep in mind that your housing costs are just one component of your overall financial situation. Getting a mortgage and related payments can be tricky if you're paying medical bills, educating your kids in college, being retired, or having an unreliable source of income at the same time.

Psychological readiness of the buyer

Choosing the best time to buy a house is more than just a financial decision; you also need to be mentally prepared. Home is a new way of life. This requires more responsibility than renting because you are the only person responsible for maintenance, repairs and refurbishment. This is why some people choose to remain tenants. These basic responsibilities, as well as day-to-day maintenance, fall on the landlord when renting.

Relocation Opportunity

If you think you can move to a new city in the next few years, buying may not be a good idea. According to Zillow, buying can be more profitable if you plan to buy the same property for more than three years. The capital gains from real estate appreciation and mortgage payments can often be enough to offset the initial purchase costs after three or more years of living in the home you own.

Is a recession a good time to buy a house?

A recession is not always a good or bad time to buy a house - it all depends on your financial circumstances. During a recession, the economy stops growing because the activity of buyers and sellers decreases. Instead of a gradual improvement, the economy is contracting for about six months, and the negative effects of this recession can persist for much longer.

If a recession puts you at risk of losing your job or if your finances are in trouble, now is not the time to buy a house. However, if your income is solid and you are well financed, buying a house during a recession can be a big win for you because prices are often lower.

How does property value fall?

Supply and demand drive home prices down. The main reasons for falling property prices are rising interest rates (higher mortgage payments), high unemployment/recession (lower demand and foreclosures).

Why are old houses better?

Old houses are built better. Even walls can change. Plastering and turning make them stronger than drywall in older homes. Older materials also insulate and soundproof better.

Why are houses expensive?

Age and condition. New homes are priced higher. Buyers can save money because better plumbing, electrical, roofing, and domestic systems are less likely to break.

Does the age of the house matter?

The age of a home is one of the least important variables for many buyers. Experts believe that this should be a priority. Many housing trends have continued over the years, but some have changed.

What matters most when buying a house?

Location. Buying a home depends on location, location, location. You cannot move your house.

Conclusion

When it comes to buying a home, timing is everything. However, when looking for real estate, each season brings with it both positive and negative variables such as inventory, competition, and prices. The optimal time to buy a house and get a mortgage ultimately depends on your personal finances and other circumstances.

Getting mortgage pre-approved is one of the most important things you can do to make sure you're ready to start looking for a home. Starting the home buying process with pre-approval will give you more confidence in your financial situation and a better understanding of how much housing you can afford. It will also make you a more attractive buyer if you come across a house you want to buy.

Best time to buy a house FAQ

What is the cheapest time of the year to buy a house?

Winter is usually the most affordable time of the year to buy a house. Salespeople are often motivated, which obviously gives you an edge. Most people pause ads from Thanksgiving until New Years because they think there won't be enough buyers.

What is the best credit score for buying a house?

620 or more
When applying for a traditional loan, you must have a credit score of 620 or higher. If your credit score falls below 620, lenders may not be able to approve your loan or may be forced to offer you a higher interest rate, resulting in higher monthly payments.

Which month sells the most houses?

Spring (March-May)

The spring months are often considered the best months to sell a house. Indeed, the first two weeks of May are often the busiest and most profitable times for retailers across the country. Warm weather, longer days, and a selection of lush plantings increase the curb's appeal in spring.

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Buying an apartment in a new building: step-by-step instructions

Agree, it is difficult to imagine an ordinary person who wants to spend a free evening not in front of the TV, but reading reviews of Moscow new buildings. This information may be interesting and useful only to those who are thinking about buying an apartment. And rightly so, Novostroev is not entertainment, but rather a useful tool that should be used correctly - like a hammer during repairs.

Therefore, today we will talk in detail about the process of buying an apartment in a new building. About what it is better to start with, how to check the developer - and what to do when all the documents have finally been signed. And since this instruction is called step-by-step, we recall that even a journey of a thousand kilometers begins with one step. So go ahead!

Contents

  • Define your desires
  • Consider Your Possibilities
  • Search on your own or hire a realtor
  • Search for an apartment on the Internet
  • Check the builder
  • Drive to construction site
  • Contact builder
  • Payment method
  • Select seller
  • Required documents
  • Verification of documents during the conclusion of a transaction
  • Reception apartment
  • What to do after completing the purchase

1. Define your desires

It is worth approaching the purchase of an apartment in detail - this is not a trip to the grocery store for you. So for starters, it would be nice to figure out what you generally want. Ask yourself the following questions:

  • Do you really need an apartment - maybe an apartment will be arranged? Suddenly, you are still not going to register at the place of residence and like to spend money on utilities.
  • Is the location of the apartment important to you? What should it depend on - on the place of work, the apartment of relatives, the proximity of your favorite cafe?
  • Is the class of housing important to you? Does he have to be tall - or with a sweet paradise and in the economy?
  • What infrastructure facilities should be around the house - a kindergarten, a school, shops, a fitness club, a hairdresser? Or maybe you really want to live, say, next to the cinema?
  • What about transport? Are you looking forward to the public? Or do you have a car - and therefore the main thing is that there are fewer traffic jams near the house?
  • Will the duration of construction confuse you - or are you in no hurry?
  • How many rooms should an apartment have?
  • Should there be a balcony? Or does it have to be a loggia?
  • Will you pull an independent repair - or is it better to look for an apartment with a finished finish?
  • And this is the place for at least one more question - what is important for you in the apartment?

Write down a list of honest answers so you have something to start with.

2. But don't forget the possibilities

But when listing desires, still keep yourself in control and consider your capabilities. Maybe, in order to pay for utilities in a five-room apartment, you will have to get a second job - but you can easily pull a four-room apartment with one.

Maybe the "profitable" offer for an apartment in business class is not so profitable - especially if you initially looked at economy.

You may be able to handle the monthly mortgage payments, but the down payment will be too much for you. In the end, admit to yourself that you can lead a normal life without two dressing rooms.

3. Find out if you can find an apartment on your own - or is it easier to hire a realtor

When you already understand what you want, and most importantly - what you can afford, it's time to decide whether you will look for an apartment on your own - or seek the help of a real estate agent. Yes, the matter is difficult for you - some immediately trust its intermediaries, albeit for large commissions.

But be careful when hiring a realtor! The times of “black realtors”, fortunately, have already passed, but you can still fall into the clutches of scammers or just lazy people. Also, be sure to make sure that your requests are accurate, and, of course, be prepared to shell out a rather large amount - realtors usually ask for a few percent of the cost of an apartment for their work. How much effort and time you spend saving money - that is the question.

You can make a compromise with yourself - conduct the search yourself, and leave the legal part to the intermediary.

4. Start searching for an apartment on the Internet

Gone are the days when, to find the perfect (okay, let's face it, the right one) apartment, you had to collect and flip through various newspapers and magazines with real estate ads. Today, all this waste paper has been replaced by the Internet. The network is full of sites that search for the parameters you specify, others offer similar options, and still others show the most popular and profitable offers.

And to save time, read the sites where real professionals write about new buildings (by the way, you don’t have to go far) , select interesting projects there, and then look at the sites of specific residential complexes or developers.

5. Check the builder: his reputation, and especially the documents

You need to start checking the developer from the earliest stages. Check out the following documents.

  • Design Declaration - an official document in which the developer provides information about himself and his project.
  • Building permit is a document certifying that the project declaration meets all necessary requirements.
  • Contract for land plot on which a house is being built - making sure that the land belongs to those who build on it will not be superfluous.
  • Equity agreement - an agreement according to which you invest your money in the construction of a new house, and the developer undertakes to transfer the apartment to you in return. It is this document that should ideally protect you from any risks when buying.

Read the forums of residents or other projects of the same developer - what do they say about them? Will you face postponed deadlines, with an increase in the apartment area, with a disregard, with deceit? Can we, say, trust a company that has been on the market for only a week? Conduct a comparative analysis of prices, observe the construction process. And when you come close to buying, again pay especially careful attention to the documents provided.

6. Go to the construction site - look around, talk to possible future neighbors

When all sites and forums have already been read to holes, go to the construction site yourself. See what your possible future home looks like, what the area around it looks like. It will be interesting to personally see how the builders work - diligently or carelessly? How are building materials stored? What is it - birds have built a nest on the laminate? If the house is already in operation, you may be able to talk to one of its residents - here you definitely can not be afraid that you will be deceived.

7. Contact the developer - call the sales office

If information from the Internet and a quick look at the house suited you, it's time to contact the sales manager. You can open the site in parallel and ask clarifying questions on all the information presented there. Or open a forum of residents - then the questions will not be clarifying, but provocative. The main thing - do not be afraid to seem intrusive, believe me: the sales manager needs you no less than you need him. Find out the latest news, special offers and promotions.

You can even try to get a discount. This is not as difficult to do as people usually think - especially if you have arguments (and after reading the forums and visiting the construction site, they may well appear) . Everyone loves discounts, so even here it sometimes becomes a key factor in favor of a certain option. By contacting the seller, you are one step closer to your future apartment - and we achieve this.

8.

Choose the payment method that suits you

Well, half way is over - you have found an apartment that meets all your requirements. Now it's time to start making a deal. How will you pay?

Most of the secondary real estate is bought simply for cash , but in the case of apartments in new buildings, this is a rarity - new buildings are usually chosen because they do not have all the necessary amount on hand. Although it must be admitted that this option is the easiest and most convenient - pay and forget.

You can also buy an apartment in installments . Under its terms, you make an initial contribution, and pay the balance in a short period of time in equal installments. The requirements may be different - some developers are ready to wait a year for the completion of payments, others will agree with a small down payment, others will not even charge you a percentage. In general, an installment plan is a cross between a one-time payment and buying an apartment on a mortgage. It is suitable for those who have a stable high income or those who expect to receive a large amount. For example, if you are selling an old apartment to buy a new one, but have not yet received the money for it, installment plan is your option!

But probably the most affordable option is mortgage . Let's try to explain in a very simple language what it is. The bank buys you an apartment - you live in it - but gradually return the amount spent on it to the bank - and if you stop returning it, the bank takes the apartment for itself. Needless to say, that in addition to the amount spent, you also pay interest? When buying an apartment on a mortgage, you, as in the case of an installment plan, also make a down payment, only the amount of monthly payments becomes much less. But, unfortunately, they will stretch for a long time - if the installments are given for a maximum of two years, then the mortgage can last from three to fifty years.

When choosing a payment method, do not forget about possible discounts and special offers. Let's talk about maternity capital - state support for young families with two children.

9. Select a retailer

The easiest way is to buy an apartment directly from the developer, especially since this option is not only the easiest, but also the most common and probably the most reliable. Unfortunately, scammers are also found among developers, but it is worth taking the time to check them - and the risk of losing money will be minimized. And remember - who does not take risks, he drinks champagne only in a rented apartment.

It happens, however, that an apartment in a new building is sold by a contractor who, doing work for the developer, may receive several apartments as payment for his activities. Buying an apartment from a contractor carries great risks - sometimes the contractor sells it before it fully fulfills its obligations to the developer. The rights of the buyer will turn out to be a continuation of the rights of the contractor who did not cope with the work - and you will not be able to return the apartment even in court.

Also, in a recently completed new building, you can buy an apartment from the owner, but here you should be as careful as possible - in an effort to save money on the work of intermediaries, you can give money to scammers. And in general, to be honest, this is not the best way to save money - it is unlikely that someone will resell an apartment for less than he bought it himself.

10. Gather all the documents you need

Take the preparation of the necessary documents seriously and for your part - let them be required from you less than from the developer. Consider the documents required for registration of an equity participation agreement in construction:

  • passport,
  • statement,
  • receipt of payment of the state fee,
  • notarized consent to the conclusion of the transaction from the spouse.

Don't worry, the latter is only if you are married. That is, you will not be forced to marry or get married in order to register a preschool institution.

Registration of DDU is carried out by the Federal Service for State Registration of Cadastre and Cartography (aka Rosreestr) . You can provide documents there in person, you can send them by mail, or you can use the State Services portal. In about a week, you will receive a DDU with a special registration inscription. In the same way, the right of ownership is also registered in the same Rosreestr - a set of legal norms that secures your right to use the apartment.

11. Check all documents once again during the transaction

The main document at the conclusion of the transaction is the contract of sale. That is, an agreement under which the seller undertakes to transfer the apartment to your property, and you, the buyer, undertake to accept it and pay a certain amount for it. The contract of sale should be in three or even four versions - one for you, the second for the seller, one for Rosreestr and the fourth for the bank if the transaction is based on a mortgage.

In the DDU, for example, pay attention to the column "Builder" - is it the same company that appears in advertising messages? Signed by DDU must be its CEO. If the signature is someone else’s, it means that the contract is valid by proxy, and this will certainly cause complications in possible subsequent lawsuits.

If you are assigned the right to claim under the DDU, remember that here, too, nothing should be contrary to the contract and the law. The original shareholder is liable to you for the invalidity of the claim, but is not liable for failure to fulfill this very claim.

Be especially careful when buying an apartment through a housing cooperative - this transaction, unlike the DDU, does not undergo mandatory state registration, and therefore you are not immune from double sales.

Also be sure to check:

  • title deed,
  • cadastral passport (this is an extract from the state cadastre, that is, a set of information about real estate containing information about your object) ,
  • technical passport (oddly enough, a document that spells out the technical characteristics of the apartment - the installation of interior partitions, sewerage, heating systems and all that other stuff) .

12. Carry out the process of accepting an apartment no less carefully

This advice is easier to implement when buying an apartment in a resale property. But even after receiving the keys to an apartment in a new building, do not delay checking it. Inspect the living space in daylight - are there any defects that appeared during construction work? Are the walls even? And the floor? Are all communications working properly? The sooner you notice all this, the easier it will be to get the developer to correct their shortcomings. Unless, of course, you are not eager to do the repairs yourself. Carefully read the act of acceptance and transfer of the apartment and all its annexes, the state of the object at the time of your actual entry into use should be recorded there. Do not accept an apartment if you know about its shortcomings.

13. Understand what needs to be done after the purchase is completed

It is difficult to say what is harder to do with an apartment - choose, buy or turn it into the desired cozy nest.

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