On average, home ownership ranges between 60-70% of people in each state. Everyone else is either renting, living in someone else’s home with a different living agreement, or not looking to lay roots anytime soon.
If you’re in one of these situations but you’d like to become a homeowner in the near future, you’re in luck. You don’t have to go the traditional route – applying for a mortgage and paying your home off over time – if you don’t want to.
You can use one of the following alternative property buying methods instead!
Here are 3 unique ways to buy a house that may be more appealing to you.
1. Create a Seller Finance Deal
Most people choose to buy a home once they get tired of renting. They figure that the same money they’re putting into rent each month can be better applied to a monthly mortgage, even if they have to come up with a little extra money for the latter.
Or, they can opt for a seller finance deal instead of a mortgage. In this agreement, the seller “carries the note.” They basically keep the title and rights to the property until the buyer pays off their debt, which is done with payments over time.
This cuts out the need for a mortgage loan (or a middleman) and creates an agreement between just the buyer and seller. It’s kind of like a structured settlement, which is what people mean when they say things like “I plan to sell my annuity.”
2. Buy with Cash
Another alternative way to buy a home is to buy it all in cash. This eliminates the need for a mortgage because it pays off all the fees of buying a property at once.
Plus, you can buy a home with cash directly with a seller. This allows both of you to save on realtor costs, but it does come with a bit of a risk. It’s still a good idea to get a home inspection and talk out the specifics before you cough up the cash for a new home.
3. At Auction
If you’re interested in buying with cash, consider buying a home at auction. This is a great way to get an amazing deal on a house. It’s how most people get a really cheap house, then start fixing it up.
Although it takes a pretty penny to bring most auction houses up to standard, buyers typically end up saving money as opposed to buying a property the traditional way.
Understanding Which of the Ways to Buy a House Is Right for You
Whether you want to take on one of the alternative ways to buy a house or you’re leaning more towards applying for a mortgage, make sure you take the time to think about this decision.
This is not a purchase to take lightly, and how you purchase a home matters just as much as what you actually invest in it.
Click here for a few more real estate insights to prepare you for this process!