12 Underrated Strategies for Scoring Affordable Dream Homes in Your Ideal Location

Homebuyers may still be feeling the pinch of high housing costs or interest rates, and low housing inventory is an issue nationwide.

If you're trying to retire early, you may want to sell your home and downsize to something more affordable. But finding your dream home where you want to live can be challenging and expensive.

If you’re struggling with the housing market, check out these ideas for finding a home you want to live in.

Reevaluate your needs and think about cutting back on the square footage you want for your desired location or price point. You may find that you don’t need as much space as you thought. 

If this is your first home, you can buy now and move to a larger home when prices are lower, or you have equity in your home to finance a larger home.

You may have your heart set on a particular neighborhood but can’t afford some of the most up-to-date houses there. So think about compromises you’re willing to make. 

If the neighborhood is most important, would you be willing to buy a home that may not be in the best shape? 

You’ll have to put some extra work into it, and your weekends may be spent on projects. But you'll eventually have a house you love without an expensive mortgage.

A vacant home may belong to a motivated seller who has already relocated, or someone could have inherited it and wants to cash out.

A vacant home can also help you better visualize your furniture or design in a particular space. Seeing an empty canvas instead of a cluttered space may be a selling point.

A home may make a poor impression on you as soon as you park in front of it, but don’t let that discourage you the way it might other sellers.

Plants and flowers can be replaced, weeds can be pulled, and a home's exterior can be fixed up or repainted.

You also may want to consider bigger curb projects like landscaping the front of the home or painting or replacing siding to give it a different look.

Someone may decide to sell a home themselves instead of using an agent to avoid paying a realtor’s commission. That savings could be passed on to you as the buyer.

Have paperwork reviewed by a real estate attorney or your real estate agent so you don’t make costly legal mistakes when buying directly from the owner.

Realtors may have listings they’re holding on to for specific clients, or they’re waiting for the best buyer for their sellers. You may also have friends or family who know of someone who’s about to list their home in an area you desire.

You could also make cold calls, talk with family and friends, or perhaps even appeal on social media in groups specific to the neighborhood you want to live in.

A short sale or foreclosure can be more complicated than buying a home in a traditional way, but it could also get you a good deal on a property.

Do your research on the issues involved with buying a property as a short sale or foreclosure, and make sure you have all the paperwork or other information you need to be eligible to buy a short sale or foreclosed property.

A home may be sitting on the market longer than others in the area because it needs a new roof, a furnace replaced, or a major repair that could cost a lot.

But a home with a major repair looming could also be a home that’s more affordable than a typical place in the area.

Negotiate for a lower price if you’re willing to take on the extra project as a do-it-yourself issue or one where you have to set up a contractor to make it work.

If you're looking in a specific area for the ideal house and coming up empty, it may be time to expand your search area.

Look at other neighborhoods or towns nearby that might not be as expensive. Consider changing the location if you’re unwilling to compromise on size or the type of house you want.

You might want to consider becoming a home caretaker if you want to live in a tourist destination or a town with many second homes.

A caretaker can live in a home in a desirable area for free or get paid to take care of the property for the homeowners.

Of course, you probably won’t be able to make the home your own since it doesn't belong to you. And you’ll have to find other accommodations when the homeowner wants to use their home.

Perhaps the most affordable home in the area is near train tracks, a fire station, or a really busy street.

These may be issues for other buyers, but they might not be issues for you. Consider what you’re willing to overlook to get the home in your desired neighborhood.

Becoming a landlord on your property may be a good option — if you find the right place and tenant.

You might find a home with a living space with a separate entrance or a room above your garage. You could also have a separate dwelling or guest house on your property that you can rent out to help you pay your mortgage.

In the current housing market, you might have to make some compromises, but there are ways to get the house you want in the neighborhood you want for the price you want.

You also might have to find ways to earn extra money to cover renovation costs, which may be something you’re willing to do for the right home.