How to Find Affordable Houses: 13 Smart Ways to Save on Your Next Home
The prices of homes these days makes one wonder if now is a good time to buy a house. With rising property prices, finding an affordable home can feel like searching for a needle in a haystack. However, if you know where to look, you can discover affordable homes that fit your budget.
Whether you’re searching for a cheap house in Houston, TX, a fixer-upper in Brooklyn, NY an affordable home in Lynden, WA, buying a cheap house requires a combination of strategic planning, thorough research, and leveraging available resources.
Below are some of the best ways to find an affordable home without breaking the bank.
1. Know your budget first
Before you start searching for a cheap house, it’s important to evaluate your financial health and determine how much house you can afford. Review your savings for your down payment, monthly income, and potential loan options to set a realistic price range. Maintaining a low debt-to-income ratio and a strong credit score can also enhance your eligibility for favorable mortgage terms.
A mortgage pre-approval can give you a clearer picture of your financial standing and help you secure a deal faster. The 28/36 rule is a common mortgage budgeting guideline. It suggests your mortgage payment should be no more than 28% of your gross monthly income, covering principal, interest, taxes, and insurance. Additionally, total debt payments, including the mortgage, should not exceed 36% of your income. For example, if you earn $7,000 a month, your maximum mortgage payment should be $1,960.
2. Explore online listings
Exploring online listings is one of the most efficient ways to find your next home, and Redfin offers an excellent platform for doing just that. Online listings allow you to quickly filter properties by price, location, and other key criteria, saving you time and effort. You can view detailed information, such as photos, descriptions, and even virtual tours, which helps you assess potential homes without leaving your couch. Many sites also provide tools like price history, estimated home values, and neighborhood insights, giving you a clearer picture of what you’re getting.
3. Consider homes listed for 30 days or more
If a house has been listed for an extended period, the seller might be more open to negotiations. Sometimes, these types of houses remain unsold due to minor cosmetic issues or pricing mistakes, but they could be a great deal if you’re patient. Sellers may be more motivated to sell after having their home listed for a longer period, especially if they haven’t received any offers.
Additionally, these homes often face less competition, giving you an edge in a market with high demand. Working with a real estate agent can help you find these listings and negotiate a better deal, making it a great opportunity to secure a home at a more affordable price..
4. Check out public auctions and foreclosures
Another effective way to learn how to find cheap houses is by exploring public auctions and bank-owned foreclosures. At an auction, you might have the chance to bid on a home below its market value, potentially scoring a great deal. Foreclosures, on the other hand, are homes that have been repossessed by the bank due to unpaid mortgage loans and are typically priced to sell quickly. While these options may require some extra research and potentially some repairs, they can offer significant savings for those willing to put in the time and effort.
While this route can lead to significant savings, it’s important to research the property thoroughly and understand the auction process to avoid unforeseen complications. Websites like Auction.com list government-owned homes that can be great bargains for buyers.
5. Consider fixer-uppers and ‘sold as-is’ homes
Considering fixer-uppers and homes listed as “sold as-is” can be a smart strategy for finding an affordable home. These properties are often priced below market value because they may require repairs or updates. While taking on a renovation project can be an investment of time and money, it also offers the chance to personalize the space to your taste and potentially increase its home value over time. It’s essential to conduct thorough inspections and obtain contractor estimates to ensure the investment aligns with your budget.
6. Expand your search area
Looking beyond hot markets can significantly widen your options for affordable housing. Popular cities and trendy neighborhoods tend to have higher home prices due to demand, but by expanding your search to the more affordable cities, nearby towns, or rural areas, you may discover more affordable housing options. For example, in January 2025, the average home price in New York, NY was $765,000, whereas in Stamford, CT, located just outside the main metropolitan area, the average price was significantly lower at $679,000.
You can also consider up-and-coming areas that are starting to gain attention. These neighborhoods might still have lower home prices but could see appreciation over time, offering not just a good deal now but also a solid investment for the future. However, it’s important to consider factors such as employment opportunities, amenities, and commute times to ensure the location aligns with your lifestyle.
7. Explore government and first-time homebuyer programs
Various government programs are designed to assist individuals in purchasing affordable homes. For instance, the U.S. Department of Housing and Urban Development (HUD) offers resources and programs aimed at helping low-income families find housing. Additionally, the Single Family Housing Programs by USDA Rural Development provide opportunities to buy, build, or repair homes in rural areas. Researching and applying for these programs can significantly reduce the financial burden of homeownership.
8. Look at for-sale-by-owner and inherited homes
Some homeowners choose to sell their properties without involving real estate agents, often resulting in lower prices. These for-sale-by-owner listings can be found on various online platforms and local classifieds. Direct communication with the seller can provide room for negotiation and potentially lead to a better deal. Similarly, inherited properties are sometimes sold quickly by beneficiaries who prefer a swift transaction, offering opportunities for buyers seeking affordable options.
9. Don’t overlook contingent listings
Many buyers skip over contingent homes, assuming they’re off the market—but that’s not always the case. A contingent listing means the seller has accepted an offer, but the sale depends on certain conditions, like the buyer securing financing or selling their current home.
If those contingencies fall through, the deal could collapse, giving you the perfect opportunity to step in. By submitting a backup offer, you position yourself as the next in line, potentially avoiding a bidding war. Plus, sellers dealing with contingencies may be more open to negotiation, giving you a chance to score a cheap house at a better price. Keeping an eye on these listings can give you a competitive edge in your home search.
10. Be open to less desirable features or alternatives to single-family homes
If you’re searching for a cheap house, consider properties that others might overlook. Homes with minor drawbacks—like outdated interiors, a smaller yard, or being near a main road—often come at a lower price but can still be great investments. Many of these issues are cosmetic or can be improved over time.
Additionally, think beyond traditional single-family homes. Condos, townhouses, duplexes, and manufactured homes can be more affordable while still offering great living spaces. Even fixer-uppers can be a smart choice if you’re willing to put in some work. By staying open-minded, you can find hidden gems that fit your budget without sacrificing long-term value.
11. Work with a knowledgeable real estate agent
Experienced real estate agents possess in-depth knowledge of the local market and can provide insights into affordable housing options. They can alert you to new listings that fit your criteria, including for-sale-by-owner properties and inherited homes that may not be widely advertised. Building a relationship with a trusted agent can streamline your search and increase the likelihood of finding a cheap house.
12. A strong offer isn’t just about price
When competing for a home, it’s easy to assume that the highest offer always secures the deal—but that’s not always the case. Sellers often consider other factors, such as financing terms, contingencies, and closing timelines. A cash offer, for example, can be more appealing than a higher bid with a mortgage because it eliminates financing risks and speeds up the process.
Additionally, a buyer who is flexible with closing dates or waives certain contingencies—like excessive inspection demands—can have an edge over those simply offering more money. Building rapport with the seller through a personal letter or demonstrating reliability can also make a difference. Understanding these dynamics can help you craft a compelling offer that stands out, even if it’s not the highest.
13. Be patient and stay flexible
Finding a cheap house takes time. If you stay flexible and open-minded, you’ll have a better chance of finding a home that fits your budget. The more adaptable you are, the more options you’ll have within your budget. Housing market conditions can change, and a home that seems out of reach today may become more affordable in the future. Keep checking listings, visit different areas, and be ready to act fast when a good deal comes up.
Finding an affordable house: Final thoughts
By understanding your financial limits and exploring these various avenues, you can navigate the real estate market effectively to find an affordable home that suits your needs. Whether you’re connecting with an agent, attending an auction, or negotiating with a seller, persistence and research are key to securing an affordable home.
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