It’s June of 2021 and the housing market is on fire after months of rising demand. Up against a housing shortage and hiked up prices, hopeful homebuyers may be feeling the pressure to cut costs. Some may even be considering buying the cheapest house in their desired market. It’s not necessarily a bad idea if you have the time, interest and money to make renovations (because trust us, you will need to make renovations), but there are plenty of reasons buyers should put this idea to bed — before they run too far with it.
According to real estate experts, buying the cheapest house on the block usually brings on a mega case of “buyer beware.”
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“Typically, the cheapest house available is either in disrepair or has some problem with location or possibly zoning,” said D. Shane Whitteker, owner and chief broker at StateCollegeMortgages.com. “If the home is in disrepair, that will be obvious and you have options to secure a renovation mortgage, or if you have the money you can finance the renovations yourself. This is rare, but sometimes there is a zoning change that makes a property undesirable. A real estate agent should be able to help with this but you really should do your own research.”
What else could go wrong? Oh, quite a bit more. Here’s a look…
Last updated: June 4, 2021
Related: Signs You Should Not Buy a Home Right Now