When it comes to single family homes for sale, options often feel endless when looking in the suburbs or in the countryside. However, in many urban areas throughout the US, single-family homes may be in short supply. When it comes to cities and metro areas, space comes at a premium. Single-family homes that are detached are often more expensive and scarcer than condominiums in urban areas. For those who are looking for one of these properties, here are three things that can help make the search successful.
Hire A Real Estate Agent
The first step for anyone looking for a single-family home in an urban real estate market is to hire a real estate agent. Real estate agents have detailed knowledge of the market and can help buyers narrow down which neighborhoods are most likely to have homes that fit their specifications and that are within their budget. In hot real estate markets where single-family homes are off the market fast, a real estate agent is a must.
Look Into Alternatives
While most home buyers have specific features that they are looking for in a home, the reality is that it is nearly impossible to find a property that checks off all of the boxes. Homeowners who are looking at single family homes in urban areas should consider fixer uppers and other properties that may not be exactly what they want. In many cases, a fixer-upper may be the only affordable way to find a single-family home in a city. Building on a vacant lot is another option for someone who is looking for a single-family home. However, it's important to make sure that it's possible to build a single-family home before purchasing the land.
In many cities, single-family homes are expensive. For example, in San Francisco, the median home value is over 1.2 million dollars. In many urban areas, purchasing a single family home will require a jumbo loan. These loans can be harder to get and often require a higher down payment. Some jumbo loans require a down payment of 5 to 10 percent, however, down payments of 20 percent or more are more common. Getting pre-approved for financing and have a larger down payment saved up will make purchasing a single family home in a city an easier task.
Purchasing a single family home in a city can be a challenge. Often these types of homes are in short supply and come at a premium. Hiring a real estate agent, looking into fixer-uppers and vacant lots, and getting pre-approved for financing can make the process a little easier for buyers.