How to Buy a Starter Home: Pros, Cons, and Tips

Buying your first house is a major move, even if the home itself is tiny. Becoming a homeowner can be a great way to start putting down some roots and building equity.

What Is a Starter Home?

A starter home is loosely defined as a smaller property that a first-time buyer expects to live in for just a few years. The home could be a condo, townhouse, or single-family home.

How Long Should You Stay in a Starter Home?

Unless you’re a big fan of packing and moving — not to mention the often-stressful process of selling one home and then buying another, or buying and selling a house at the same time — you may want to stay in your starter home for at least two to five years.

Benefits of Buying a Starter Home

•   Becoming a homeowner can bring stability to life. •   Buying a starter home is also a great way to try on aspects of homeownership. •   Buying a starter home is also an investment that could see good returns down the road.

How to Find Starter Homes for Sale

Work with an experienced real estate agent who knows your market and spends their days finding homes in your price range.

Tips on Buying a Starter Home

If you’re tired of renting or living with your parents but don’t have the cash flow necessary for anything more than a humble abode, a starter home could be a great way to get into real estate without breaking the bank.

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