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What is a Starter Home?

A starter home is exactly what it sounds like—a modest, entry-level property that meets your basic needs as a homeowner. It's usually smaller in size, more affordable, and located in a neighborhood that might not be your dream location but offers good value. Many people see their starter home as a stepping stone towards their forever home, a place to build equity and gain experience in homeownership.

Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage is an important step in the homebuying process. It also happens to be what most people find to be the most daunting and sometimes overwhelming step. We have some GREAT mortgage brokers that can make this step a lot easier. They don't just email you and leave you to it. A pre-approval lets you know how much you can borrow from a lender based on your financial situation and credit history. PLUS, having a pre-approval letter in hand shows sellers that you're a serious buyer and can give you an edge in a competitive market.

Assess Your Needs

Before you start your search, take some time to assess your needs. Your pre-approval lets you know exactly what your budget will be. Consider factors like location, size, number of bedrooms and bathrooms, amenities, and commute times to work or school.

Research Neighborhoods

Research potential neighborhoods where you'd like to buy your starter home. Look for areas that fit your budget, offer good schools (even if you don't have children, this can affect resale value), and provide convenient access to amenities like parks, shopping, and public transportation.

Start Your Search

Once you have your budget, pre-approval and your needs in place, it's time to start your search for the perfect starter home. You can use online real estate websites and apps to browse listings, work with a real estate agent who specializes in first-time homebuyers or attend open houses in your desired neighborhoods.

Consider Fixer-Uppers

Don't be afraid to consider fixer-upper properties that need some TLC. While they may require more work upfront, they can often be purchased at a lower price and offer the opportunity to build sweat equity. Just be sure to budget for renovations and repairs, and factor in the time and effort it will take to complete them. We have a few amazing first-time buyer specialists on our team who are knowledgeable in this area too!

Make an Offer and Negotiate

Once you've found a home you love, work with your real estate agent to make an offer. Your agent can help you determine a fair price based on comparable sales in the area and negotiate with the seller on your behalf. Be prepared for counteroffers and be willing to compromise to reach a mutually beneficial agreement.

Close the Deal

Once your offer has been accepted, you'll enter a period during which the necessary paperwork and inspections are completed. You'll need to schedule a home inspection to identify any issues that need to be addressed before closing. Once everything is in order, you'll sign the final paperwork, pay any remaining closing costs, and receive the keys to your new home.

Enjoy Your New Home

Congratulations, you're officially a homeowner! Take some time to settle into your new space, make it your own, and explore your new neighborhood. Owning a starter home is an exciting first step towards building wealth and creating a place to call your own.

Buying a starter home is an exciting and rewarding experience, but it's important to do your research, establish a budget, and work with professionals who can guide you through the process. With careful planning and consideration, you can find the perfect starter home to begin your journey as a homeowner.