Today’s house prices can make you wonder if now is a good time to buy a house. Paired with high mortgage rates and 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 or a fixer-upper in Brooklyn, NY, 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.
Key takeaways
- Know your budget. Figure out what you can afford and get pre-approved to shop with confidence.
- Look in the right places. Explore online listings, auctions, foreclosures, and homes sitting on the internet.
- Stay flexible. Consider different neighborhoods, fixer-uppers, or smaller homes to stretch your budget.
- Use buyer programs. Take advantage of first-time homebuyer assistance, FHA loans, and grants.
- Work with a pro. A good real estate agent can spot deals you might miss and help you act fast.
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 spending no more than 28% of your monthly income towards your mortgage, and no more than 36% toward your mortgage plus debt payments. For example, if you earn $7,000 a month, your maximum mortgage payment should be $1,960.
>>Read: Am I Ready to Buy a House? 8 Questions to Help You Decide
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 find homes in your budget without leaving your couch.
Redfin also provides 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.
This shouldn’t be hard in today’s market, where the typical home takes about 54 days to sell. This has given buyers more room for negotiation in many cities across the country, especially those with higher housing supply. In some markets, like Miami, inventory levels have reached 6.8 months, shifting more power into the hands of buyers.
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 find cheap houses is by exploring public auctions and bank-owned foreclosures. Real estate auctions can be fast-paced and competitive, but they also present opportunities to purchase properties below market value.
Homes typically end up at auction due to foreclosure, delinquent taxes, or legal judgments, often when the original owner defaults on their financial obligations. This process allows banks, government agencies, or private sellers to recover losses quickly, which can translate into lower prices for buyers.
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.
5. Consider fixer-uppers and ‘sold as-is’ homes
Looking for fixer-uppers and “sold as-is” listings can be a smart way to net a good deal. 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.
Get thorough inspections and contractor estimates to make sure the investment fits your budget.
>>Read: Buying a Fixer-Upper: What You Need to Know
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. However, by expanding your search to more affordable cities, nearby towns, or rural areas, you may discover more affordable housing options. For example, in February 2025, the average home price in New York, NY was $850,000, whereas in Stamford, CT, located just outside the main metropolitan area, the average price was significantly lower at $611,000.
You can also consider less popular 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. Be sure 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.
If you’re new to the homebuying process, taking advantage of first-time homebuyer programs can make a big difference. Options like FHA loans require lower down payments and have more flexible credit requirements, making homeownership more accessible. Many states and local governments also offer grants, low-interest loans, and down payment assistance specifically for first-time buyers.
>> Read: Down Payment Assistance Programs: How They Can Help You Become a Homeowner
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. You can find these for-sale-by-owner listings on various online platforms and local classifieds. One of the biggest perks of buying directly from the seller is the opportunity for open communication and negotiation, which can sometimes lead to a better, faster deal.
When someone inherits a home they don’t plan to live in—especially if it’s out of state or needs repairs—they may be eager to sell quickly. These sellers are often motivated by the desire to avoid ongoing maintenance costs, taxes, or emotional ties to the property, which can result in below-market pricing. Being proactive and keeping an eye out for estate sales or recently inherited properties can help buyers snag a great deal before it hits the open market.
>>Learn more: Selling an Inherited House
9. Don’t overlook contingent listings
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. Many buyers skip over contingent homes, assuming they’re off the market; that’s not always the case.
If 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 who are dealing with contingencies may be more willing to negotiate, which gives you a chance to get a cheap house at a lower 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 know the local housing market really well. They can help you find affordable options and will let you know about houses that fit what you are looking for, including houses for sale by owner and inherited homes that aren’t advertised much. Having an agent on your side makes searching easier and helps you find 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.
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.
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