Whether you’re planning to sell your house or buy a new one, the process can feel daunting. Real estate transactions are notoriously complicated, so it’s normal to have questions during every step of the selling or buying journey.

In this guide, we’ll answer 30 of the most common real estate questions to help you better understand the market and all of your potential options.

If you have other questions about the buying or selling process, we highly recommend connecting with a professional real estate agent. A realtor can answer questions based on your local market, giving you the confidence and knowledge you need to navigate the real estate process. Find an experienced real estate agent near you today!

The top 15 real estate questions to ask when selling a house

1. How do I prepare my home before I sell it?

When preparing to sell your home, the first thing to do is make it presentable. This means giving the entire house a thorough cleaning and making small repairs.

Mop the floors, scrub the bathrooms, and get rid of all the grime in the kitchen.

Little things like patching holes in the wall, changing burned-out lightbulbs, and repairing broken appliances can make your place stand out in a crowded market.

And don’t forget about paint — returning the walls to a neutral color can help your house sell quicker. White, creams, and grays can make rooms seem bigger and help potential buyers see themselves living there.

If you’re not moving out before listing your home, you’ll also need to depersonalize and declutter.

Put away your family photos, knick-knacks, and other personal items. You may need to rent a storage unit if you don’t have a place to put them all.

» READ: 18 Essential Tips Get Your House Ready to Sell in 2021

» LEARN: Best Paint Colors to Sell a House

2. How long will it take to sell my home?

On average, a house takes between 55 and 70 days to sell. That includes 25 days on the market and 30 to 45 days for closing.

The exact time it takes to sell a home depends on a few things, including:

• The time of year you’re listing: Homes tend to sell faster in the spring and early fall.
• Conditions in your local housing market: Homes sell faster in a seller’s market, when there is low inventory and high demand.
• The condition of your home: Homes in great condition may sell faster than homes that need more work.
• How the buyer is financing: If a buyer needs to take out a mortgage, this may slow down the process. Financing deals usually take an average of 42 days to close, whereas cash deals take only one to two weeks.

The longer your home is on the market, the more money you lose. You’ll still have to pay your mortgage, taxes, and utilities until the buyer officially closes.

To avoid this, there are some things you can do to help your home sell faster.

You can make impactful repairs, like adding new carpet or painting the interior. However, if it’s a seller’s market and homes are selling quickly, you might not need to make these repairs.

You can also set a competitive price with the help of a top real estate agent.

Semya-Moya’s partner agents sell homes faster than the national average with lower commission fees.

» READ: How Long Does it Take to Sell a House? (An In-Depth Guide)

» LEARN: How to Sell Your House Fast (A Comprehensive Guide)

3. What should the list price of my home be?

The first step in deciding your home’s list price is to get a comparative market analysis (CMA) from a real estate agent.

To perform a CMA, your agent will find similar homes in your neighborhood that have the same square footage, number of bedrooms, and number of bathrooms.

They’ll see what these homes recently sold for or are listed for, and use this as a starting point for your own list price.

A great agent will be an expert in their local neighborhoods, so they’ll be able to price your home to sell without sacrificing your hard-earned equity. Get a free home valuation from a top local realtor today!

If you’re just curious and don't want to spark up a conversation with an agent, you can also use an online home value estimator to get an idea of what your home is worth.

4. Why is my home’s assessed value different from the market value?

Your home's assessed value and market value are each determined by different factors.

Buyers and sellers affect the market value of a home, while professional appraisers calculate the assessed value.

In a seller’s market, your home’s market value may be higher than its assessed value.

That’s because buyers are willing to pay more than the home is technically worth because of low inventory.

In a buyer’s market, you’ll be facing a lot of competition from other sellers, so buyers may put in an offer lower than the home’s assessed value.

» LEARN: Appraisal Value vs Market Value: What's the Difference?

5. Are real estate commissions negotiable?

You can definitely negotiate your realtor’s fees. They’re typically 6%, with 3% of that going to the buyer’s agent and 3% going to your agent.

Some agents may be willing to work for less, especially if you use a discount broker or agent-matching service like Clever.

You can also try to negotiate fees on your own, though the realtor may reduce the number of services they provide.

The same goes for using a discount broker. Some offer cheaper rates because they’re providing you with less help along the way.

They may even charge you with a fee-for-service structure. This can work in your favor if you have experience in selling, but need just a little help with the paperwork.

To get cheaper commissions without sacrificing service, an agent-matching service like Clever is ideal.

6. When is the best time to sell a home?

Early spring and summer, especially June, is a great time to sell a home.

Research shows that home sales in May, June, July, and August account for 40% of total annual sales volume.

Overall, home sales are still pretty good through early fall, so it wouldn’t be a bad idea to sell a home during this period, either.

However, home sales drop once winter hits. January is the worst time to sell a home, as market activity is much lower.

Take a look at the number of homes sold per month in 2018 to get a better idea of when to sell your home.

» READ: How Long Should You Live in a House Before Selling?

» SAVE: Sell with a top local realtor for just $3.5k or 1.5%

7. Should I buy a new home before selling my old one?

Whether or not you should buy a new home before selling your existing home is a personal choice.

Having a new home lined up gives you peace of mind when selling, and you can move out on your own time.

It also prevents you from lining up temporary housing (and having to move twice), which can be a pain.

That said, you may get stuck paying two mortgages at once. This can be a problem if your sale takes longer than expected.

You can also feel rushed into quickly finding a house instead of waiting for a better deal.

» LEARN: How to Buy a New House Contingent on Selling Your Current One

» CONSIDER: How to Build a House While Selling Yours: 5 Things to Know

8. How does my agent get paid when selling a house?

Total agent fees are usually 5–6%, with 3% of that going to the seller and 3% going to the buyer.

As the seller, you’ll be responsible for paying your agent through your sale profits. You’ll also pay the commission of the buyer’s agent.

You won’t need to write a bunch of big checks or bring wads of cash to the table. A closing agent will handle the distribution of funds when you close.

They’ll hold money from the buyer in escrow and use it to pay everyone, including your agent.

Escrow is a third-party account where the listing agent keeps money until it’s time to be distributed.

If you want to save on commission a little, you can use a service like Clever to reduce the seller commission to 1.5% or $3,500.

» UNDERSTAND: What Is Realtor Commission?

» LEARN: Average Real Estate Commission Rate

9. How much does a seller pay in closing costs?

Sellers usually pay about 8–10% of the total sale price in closing costs. Of that, 5–6% is realtor commission.

The rest is a collection of various other costs, including:

If you decide to pay part of your buyer’s closing costs, you may end up paying a bit more. They can range anywhere from 2–5% of the sale price.

» READ: Who Pays Closing Costs?

» LEARN: When and How Do You Get Paid When You Sell a House?

10. How much of the sale price do I get?

How much you actually get when selling your home depends on a lot of factors, but in general, expect somewhere between 90–92% of the sale price.

That usually includes 5–6% in realtor commissions and 2–4% in taxes and fees.

If you still owe money on your old mortgage, you will get less.

You’ll also get less if you agreed to pay for any of the buyer’s closing costs.

Buyer’s closing costs can add on another 2–5% of the sale price.

On closing day, your closing agent will distribute the funds to all the necessary parties. They’ll pay out your profits via a check or wire transfer.

» DISCOVER: Seller Net Sheet Guide & PDF

11. How can I save money when selling a home?

The best way to save money when selling a home is to negotiate your realtor’s fees.

Sellers usually pay 6% in fees, with 3% going to the seller agent and 3% going to the buyer agent.

If you don’t want to test your negotiating skills, you can just use Clever to get your seller agent fees down to 1.5% or $3,500. Our large network of top-rated agents provide the same services you’d get with another agent, just cheaper.

You can also save money by trying to sell your home on your own to completely eliminate the seller commission.

But this isn’t recommended unless you have extensive experience and knowledge in the real estate industry.

That’s because selling a home involves a lot of complicated legal paperwork. An agent knows how to handle all of this so you don’t land in legal trouble.

One alternative is hiring a lawyer to take care of paperwork. However, they don't come cheap (budget about $1,000-1,500 for the service), and you’d still need to manage your listing and coordinate showings and negotiations.

Selling a home requires some marketing know-how. Agents regularly handle the hassles of advertising and showing your property to potential buyers. And they alone have access to the multiple listing service (MLS), a local database of homes for sale. This allows them to list your home on all of the major listing sites.

If you’re selling your home on your own, you can use a flat-fee MLS company to get your home in the database and even post your listing to all the top real estate websites.

12. Should I pay my buyer’s closing costs?

You may want to pay for your buyer’s closing costs if it allows them to make a better offer or helps the sale close faster.

Usually, paying for these costs comes in the form of a credit the buyer uses during closing. A buyer might put this credit toward:

Buyers may be able to put in a higher offer if there’s less money for them to pay upfront.

Paying their closing costs can also reduce the amount they need to take out in a mortgage, making it more likely they’ll qualify for the loan and the sale will go through without a hitch.

Additionally, if your house has been on the market for a while, offering to pay for a buyer’s closing costs can attract more offers and speed up the closing process.

Finally, if the inspection reveals small issues the buyer might want to repair, offering to pay the buyer’s closing costs can make them feel more comfortable going through with the deal.

» READ: Can a Seller Refuse to Pay Closing Costs?

» READ: Who Pays Closing Costs?

13. Do I need a home inspection?

It’s the buyer’s responsibility to get a home inspection, so as the seller, you don’t need to get one. An inspection usually ranges from $300–500, so that’s money you can keep in your pocket.

That said, a pre-listing inspection does have some benefits:

• You’ll have the chance to discover and take care of major problems before listing, which could increase the value of your home.

• You’ll get to choose your own inspector instead of relying on the buyer’s choice.

• You may be able to set a higher list price if your home is in great shape.

• You can encourage the buyer to waive the inspection contingency, meaning there will be fewer chances for your deal to fall through.

» LEARN: Who Pays for a Home Inspection — the Seller or the Buyer?

» KNOW: How Long is a Home Inspection Good For? Tips for Sellers?

14. What are common bank-required repairs?

If the buyer is just taking out a conventional loan, you’ll probably only need to fix major structural issues that put the value of the house at risk, such as foundation cracks or a deteriorating roof.

For a Federal Housing Administration (FHA) loan, you’ll need to make a lot more repairs.

These required repairs might include things like:

• Patching up peeling paint

• Concealing any exposed wiring

• Fixing broken gutters

• Installing missing handrails on stairs

This list is more extensive because an FHA loan is provided to low-income homebuyers who may not have extra money to cover repairs on their own.

States and banks can also set their own requirements, so always check your local regulations.

» LEARN: Everything You Need to Know About Low-Income Home Loans

» UNDERSTAND: How to Sell a House that Needs Major Repairs

15. How can a real estate agent help me sell a home?

A real estate agent has an in-depth knowledge of the area and how your home compares to others on the market.

They’ll have a good idea of how much you can get for your home and ways you can improve its value.

When it’s time to list, they’ll make sure your home’s priced just right, helping to maximize your offers and sell your home faster. They’ll also take care of all the paperwork, market your home, and coordinate open houses.

Real estate agents aren’t just helpful during the listing process, though. They offer a network of professionals throughout the entire selling journey.

You’ll have connections for everyone you need, whether that’s a closing agent or quality listing photographer.

» LEARN: Top 3 Reasons You Need a Real Estate Agent

» READ: What Is a Listing Agent?

The top 15 real estate questions to ask when buying a home

1. What is the first step for buying a home?

Before you can purchase a home, you’ll need to check your credit score. Potential buyers with credit scores of 700 or higher reassure lenders that they can be trusted to repay the loan.

High scores reflect consistent on-time payments, long-term borrowing experience, and a good mix of credit types (student loans, car loans, credit cards, etc.).

Lenders look at these factors to determine if you qualify for certain kinds of mortgages, so be sure to review your credit history and correct any errors. This will give you a better chance at qualifying for loans with lower interest rates.

Shop around for different mortgage lenders to find out what kind of loans you prequalify for before beginning your home search. With this knowledge, you can easily create a budget and start looking for homes within that range.

» READ: What Credit Score is Needed to Buy a House?

» LEARN: 6 Easy Credit Building Tips for First-Time Home Buyers

2. How long will it take to buy a home?

In 2019, it took buyers an average of 4.5 months to choose a home and make an offer. The buying process itself, which begins when an offer is accepted, takes about 30-45 days to finalize.

However, several factors can affect the buying process, including the property’s location, buyer demand, economic trends, and other variables. Before closing, you’ll also need to::

• Order a home inspection

• Get an appraisal

• Conduct a title search

• Finalize mortgage details

• Review closing documents

To speed up the home buying process, connect with a top real estate agent in your area. A knowledgeable agent can help you narrow down your options and negotiate with sellers on your behalf.

» LEARN: How Long Does It Take To Close On a House?

3. Can I back out of buying a house?

Yes, but you may lose earnest money (basically, a security deposit given to the seller upon signing a contract).

You can also face legal consequences if you back out of the agreement for a reason not outlined in the purchase agreement. This document outlines important details, such as repairs the seller is responsible for and contingencies of the real estate deal.

However, there are certain scenarios where breaking a purchase agreement is understandable. If you lose your job, can’t sell your current home, or can’t get approved for a mortgage, it’s best to wait until you reach financial stability before buying.

Other issues with the home, such as a failed home inspection, unrepaired problems, or difficulty with transferring the title, are also acceptable reasons to back out of an agreement.

» LEARN: When Can a Buyer Terminate a Contract in Real Estate?

4. Are real estate prices negotiable?

Yes! You just need a good understanding of the current market and the seller’s needs and motivations.

When the real estate market is a seller’s market, for instance, homes are in high demand and will likely receive multiple offers. Lowballing an offer in this case might cause you to lose your chance at your dream home.

During the first three months of 2021, the average cost of a home in the U.S. was $403,600. If this number discourages you, learning how to negotiate is key. Tactful negotiation with a seller can help you afford a home you love instead of settling for an option under budget.

Consulting a real estate agent is your best bet if you want to make sure your offer won’t be rejected or ignored. Their knowledge of the local market and buyer demand will help you and the seller negotiate a fairer price.

Whether or not you use an agent, wait until after the home inspection before you try to negotiate a lower price. If the inspector finds any issues, you can ask either for a reduced price or for the problems to be fixed prior to closing.

» READ: How to Negotiate When Buying a House — An In-Depth Guide

» UNDERSTAND: How to Counter Offer After a Home Inspection: Buyers' Options

5. When is the best time to buy a home?

It depends whether you’re searching for the lowest prices or the greatest variety of options. According to a 2016 analysis, April is the most popular month for new listings, whereas November is the best time to find a good deal.

August seems to be a happy medium, offering both low prices and a wide selection of homes.

Since many sellers are eager to close deals before summer ends and school begins, buyers can expect to see plenty of price reductions in August. In 2016, for example, 15.1% of sellers reduced their listing prices before autumn. At the same time, 448,000 new homes were added to the market.

» READ: The Best Time to Buy a House in Minnesota

» READ: The Best Time to Buy a House in California

6. Should I sell my home before buying a new one?

It depends how far along you are in your home search process. If you sell your home before you’ve narrowed down your options, you might be forced to find a short-term rental or stay with friends or family. In either case, remember that this means you’ll be forced to move twice or pay for a storage unit.

On the other hand, selling your home first can give you a significant advantage over other potential buyers.

If you find a listing you really love, you can make a strong offer with the cash you made from the sale without worrying about going over your budget.

Furthermore, since you won’t feel rushed to accept an offer on your own home, you can wait until someone makes an offer you like.

» LEARN: How Do I Sell My House? Everything You Need to Know

7. How does my agent get paid when buying a house?

The agent’s commission is included in the sale price of the home, so they will be paid at closing. The standard commission rate is 6% of the sale price, which is split among the listing agent, listing broker, buyer agent, and buyer broker.

Typically, this means your agent will be paid about 1.5% of what you paid for the home.

If a home costs $200,000, for example, the total cost of commission would be $12,000.

» UNDERSTAND: What Is Realtor Commission?

8. How much does a buyer pay in closing costs?

Closing costs usually fall between 3–5% of the home’s sale price. In 2020, the national average for closing costs was $6,087, including taxes. This payment covers several necessary items for the buyer, including:

Depending on the location, closing costs might also include real estate attorney fees, pest inspections, or natural disaster certifications.

Buyers can negotiate with sellers about who should be responsible for covering the closing costs, but be aware of seller contribution maximums. These guidelines limit how much a seller can pay for closing costs based on your mortgage type.

» READ: Who Pays Closing Costs on a House?

9. How can I save money when buying a home?

You can check if you’re eligible for financial programs or loans available through the FHA (Federal Housing Administration) or the VA (U.S. Department of Veteran’s Affairs). If you’re a first-time buyer, for instance, you may qualify for an FHA loan or a home buying program.

If you meet the criteria for a VA-backed loan, you might not have to make a down payment on a home. You’ll also receive better terms and interest rates compared to most traditional bank loans.

For additional ways to save, financial experts recommend saving up for a 20% down payment on a home. Doing this will ensure that you won’t have to pay for private mortgage insurance, which can cost anywhere from .3% to 1.2% of a loan’s principal balance every month.

Lastly, home buyer rebates (also known as commission rebates) are currently available in 42 states and could potentially save buyers thousands. With a home buyer rebate, the real estate agent or broker shares a percentage of the payment they receive at closing with you, so you get some of your money back.

10. What is earnest money/hand money?

Earnest money is often described as a "good-faith deposit" from an interested buyer. The amount is usually 1–3% of the home’s purchase price, and it shows the seller that the buyer is serious about closing the deal.

As the sale is pending, the earnest money is placed in escrow (an account held by a third party until the sale is finalized). At closing, the funds can go towards closing costs or a down payment on the home.

If the buyer has to back out of purchasing the home due to a contingency in the escrow agreement, they will get their earnest money back. However, if the buyer chooses to back out of the deal for any other reason, the money will go to the seller instead.

» LEARN: What Does Under Contract Mean?

» UNDERSTAND: Escrow Fees 101: Everything to Know About Escrow

11. What is title insurance?

Title insurance protects homeowners from claims against their home that happened before they purchased it, such as a prior owner’s failure to pay taxes or fairly compensate contractors.

If you have title insurance, you’ll be covered for legal fees or title disputes that may come up during your time as the homeowner.

There are actually two kinds of title insurance:

• Lender title insurance is usually required when selling a home. This type protects the lender from any claims made on the house.

• Owner title insurance is completely optional, but paying this one-time fee will protect you from unexpected issues with the home’s title for as long as you own the house.

Purchasing both insurance policies is usually a good idea, and the combined cost is only about 0.5% of the home’s purchase price.

» LEARN MORE: What is Title Insurance?

12. What should my down payment be on a house?

Making a down payment of 20% is ideal because you can avoid paying private mortgage insurance (PMI), but more realistically, lenders usually require at least 3% for the sale to go through.

Depending on where you live and what kind of mortgage you’re eligible for, some lenders may require a minimum of 5%.

In some circumstances, you may not have to worry about a down payment at all. If you’re a first-time buyer, veteran, or rural resident, there are special programs available to help you afford a home.

» READ: Everything You Need to Know About Low-Income Home Loans

» UNDERSTAND: Popular Loan Options for First-Time Home Buyers

13. How long can the seller take to respond to my offer?

Sellers generally have about 72 hours to respond to an offer, but this may vary by state. If a bank is selling a home, on the other hand, the response can take several days or weeks.

If you make an offer and the seller doesn’t respond at all, your offer was probably too low. To increase the likelihood that your offer will be accepted, a local realtor can help you strike the right balance between a reasonable cost for you and an appealing price for the seller.

» LEARN: How Much to Offer on a House Below Asking Price

» READ: How Long Does a Seller Have to Accept an Offer?

14. Why do I need a mortgage before I buy a house?

If you can get pre-approved for a loan, it can help speed up the underwriting and buying processes, getting you into your new home sooner.

During the underwriting process, loan underwriters will review the "3 Cs:"

• Your credit history

• Your capability to repay the loan

• Collateral

If you have a positive history of making payments on time, a good credit score, and a consistent income, the turnaround time can take just a few days.

Once a lender approves your loan application, you will be "clear to close." After this, your agent will have you sign closing documents, pay the down payment, and transfer the home’s title to you!

» READ: The Mortgage Underwriting Process: A Complete Guide

» UNDERSTAND: How Long Does It Take to Get Pre-Approved for a Mortgage?

15. How can a real estate agent help me buy a home?

A buyer’s agent can help you find homes within your budget, schedule visits to houses you like, and negotiate with sellers. Top real estate agents have in-depth knowledge about your area and can save you time and money by narrowing down your best possible options.

Real estate agents also have access to the multiple listing service (MLS) database, which can help you find homes in popular locations before other buyers. Since realtors are plugged into the local market, they might even hear about potential properties before they’re officially listed!

Buying a home can seem overwhelming and confusing, but an experienced real estate agent can put your mind at ease. Clever can connect you with some of the best local agents at reduced rates to help you find the perfect home without breaking the bank.

» READ: What Does a Real Estate Agent Do for a Buyer?

» LEARN: How to Interview a Realtor When Buying a Home: 6 Tips

Buy or sell your home with confidence

Now that you’ve gotten answers to some of the top real estate questions for sellers and buyers, you should feel more prepared to face the real estate market.

Being armed with this knowledge can help you negotiate a better price for your home and enjoy a smooth buying or selling experience.

Related links

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

How Much Is Your Home Worth? Use Our Free Tool to Find Out!

With Clever’s Home Value Estimator you can get a free, instant valuation of your home. Click through to get started now!

The Best Low Commission Realtors (2023 Broker Rankings)

Find the best low commission real estate agents and brokers, so you can sell with a full-service realtor and save thousands on commission fees!

The post The Ultimate Real Estate FAQ Guide appeared first on Semya-Moya.

From 2010 to 2020, Utah was the fastest-growing state in the U.S. Low unemployment rates, new job opportunities, beautiful landscapes, and family-friendly cities encouraged more people to move to Utah.

It seems popularity comes at a price: many cities in Utah are now too expensive for most Americans. There are still affordable places to live in Utah, but they can be a little tricky to find if you don't know where to look. Luckily, we've compiled the list of most affordable cities in Utah to help you out.

Another way to overcome this hurdle? Make sure you're working with an expert real estate agent. They'll know how to scour Utah neighborhoods and find you a dream home that won't break the bank.

At Semya-Moya, we can match you with agents in any area you're interested in — whether you want acreage near Tooele or a cozy apartment in Brigham City. If you aren't sure yet, you can look in multiple areas at the same time and interview as many agents as it takes to find the perfect place to call home. Our service is completely free and there's no obligation to you.

The most affordable cities in Utah

While you're researching affordable places to move to in Utah, that likely isn't the only thing you're looking for. We understand the need to balance budget with amenities, so we also took lifestyle criteria such as schools and recreation into consideration. From affordable areas for families to the best place to find wide open spaces, check out our top picks:

How affordable is housing in Utah?

When housing demands increase, so do home prices. Due to recent population growth, many cities in Utah now are too expensive for potential home buyers — especially when you look at the price-to-income ratio (PTI ratio).

According to the most recent data from the US Census Bureau, Utah's median home value is $305,400 and the median household income is $74,197. This makes the average PTI ratio in Utah 4.1, exceeding the recommended PTI ratio of 2.6 — and putting the majority of Utah's cities out of most people's price range.

Nonetheless, the Beehive State still has pockets of affordable homes — many of which are within an hour of Salt Lake City. To find the cheapest places in Utah, we looked at PTI ratios, costs of living, and other factors (learn more about our methodology).

Best overall: Roy

Located about half an hour north of Salt Lake City, Roy tops our list of the most affordable cities. With a relatively low PTI and lower-than-average rent prices, Roy is a good option for both home buyers and renters.

Roy offers plenty of local attractions and things to do, including 10 local parks, a recreation complex, and an aquatic center. Every August, residents look forward to celebrating Roy Days, which features a 5k race, fireworks, golf tournaments, free concerts, and other festivities.

This family-friendly city is also part of Weber School District, one of the largest and best-performing school districts in the state. In 2021, three Weber School District employees earned statewide titles: Superintendent of the Year, Utah Teacher of the Year, and the URISE (Utah Recognizing Inspiring School Employees) award.

Honorable mention: Kearns

Kearns has a similar population and affordability as Roy. Located about 20 minutes southwest of Salt Lake City, Kearns is a small township with a busy community calendar. Residents can sign up for different classes and activities at the local library, enjoy free community movie nights, or enroll in ice skating lessons at the iconic Utah Olympic Oval.

Kearns is part of the Granite School District, the third-largest school district in Utah. The district includes over 60 elementary schools, 17 middle schools, and 11 high schools to meet the needs of over 66,000 students.

Best for buying land: Tooele

Spanning across 5 million acres in northwestern Utah, Tooele offers plenty of undeveloped land, farmland, and residential lots for prospective buyers. The most common type of land sold in Tooele is for residential use, though properties can be used for commercial farming, hobby farming, hunting, and more.

Farmland in Tooele County averages $16,577 per acre. While this is slightly above the state average, residents tend to pay less for other essentials. For example, the overall cost of living in Tooele is 13% lower than the national average, and housing costs are 33% lower than the national average.

Even after you've found a more affordable place to live in Utah, moving there can be expensive. By working with a Clever Partner Agent, you'll have an expert in your corner, but you'll also be able to take advantage of Clever Cash Back.

When you use one of our agents to buy a home, you may be eligible for up to 0.5% cash back to use on anything you want. For the average home value of $305,400, you'd pocket $1,527 to help you move (or splurge on a lift ticket for Utah's famous ski areas).

» SAVE: Get in touch with Clever to learn more

Best for families: West Point

If you're searching for a smaller, community-oriented town to raise a family, West Point could be an ideal location. Situated near the shore of the Great Salt Lake, West Point has a population of just 10,829 and a low PTI of 3.0. More West Point residents work in computers and math than 95% of other cities in the country, which may account for the relatively high incomes.

Despite its small size, West Point still offers plenty of things to do. A community relations specialist frequently organizes activities and events such as Halloween carnivals, Easter egg hunts, senior lunches, free movie nights in the park, and local contests.

West Point is also home to three community parks and is located in the Davis School District, the second-largest district in Utah.

Honorable mention: Clinton

Less than 10 minutes northeast of West Point, Clinton is a great option for families who would prefer to live in a larger town. Clinton is also part of the Davis School District, and has a similar PTI (3.0), but about twice the population. Residents can enjoy family-friendly activities year round, such as the annual Heritage Days celebration, recreational sports leagues, or art classes.

Moving to an affordable place in Utah might ease the strain on your budget — but how much? If you haven't already run the numbers, it's a great idea to check out Utah mortgage rates so you know exactly what you can afford. That way you can start searching for that perfect family home in West Point or Clinton without worrying about finances. Check out the below map to see what average mortgage rates are right now.

Best for retirees: South Ogden

Whether you choose to buy or rent, you'll have affordable housing options to consider in South Ogden.

With a median home value of $225,600 and a median rent of $1,042, South Ogden is an affordable and charming area for retirees. South Ogden has an extensive hiking trail network and nine local parks, making it easy and enjoyable for residents to stay active. Nearby, retirees can also find Ogden's Golden Hours Senior Center, which offers meals, classes, clubs, fitness activities, special events, and social groups for adults 55 and older.

Ogden is also home to several 55+ communities, assisted living facilities, and memory care centers.

» MORE: Buying vs. Renting in Retirement: Which Is the Better Idea?

Honorable mention: Syracuse

Syracuse has a variety of housing options for residents over 55. Independent and active retirees will love the age-restricted community of Sunset Park Villas. It offers a maintenance-free lifestyle, giving seniors the freedom to enjoy the community clubhouse, join clubs and social groups, or explore the city. Another choice to consider is RainTree Senior Living, which offers both home health aid and an assisted living facility to match your needs.

Getting excited about moving to Utah? We don't blame you! Turn your daydreams into a reality by connecting visiting with a Clever agent. They can help you find the perfect neighborhood with all your must-haves, whether you want a great local food scene or a tranquil park a block away. While you're at it, snag cash back to use on whatever you want after closing.

Best for renters: Brigham City

Situated on the western edge of the Box Elder Canyon, Brigham City offers some of the lowest rent costs in Utah. The median rent is just $760, which is $330 less than the state average.

Brigham City may be inexpensive, but that doesn't mean it's a boring place to live. The city is rich in natural beauty, such as the nearby Wellsville Mountains, which have been dubbed "the steepest mountain range in the world". Birdwatchers can happily visit the Bear River Migratory Bird Refuge, which lies just west of the city.

Downtown Brigham City is actually a 501(c)3 non-profit! Through the Main Street Program, the organization sponsors a variety of art, historical, and cultural events throughout the year while promoting local businesses. One of the most popular annual events is the summer farmers market, which is often referred to as "Utah's Famous Fruit Way."

As for local dining, new residents are encouraged to check out Maddox Ranch House. Known as "Utah's Original Steakhouse," Maddox Ranch House is a beloved old-fashioned restaurant in the nearby town of Perry.

Honorable mention: Logan

Located about 80 miles north of Salt Lake City, Logan offers a low median rent of just $783. It's home to two college campuses — Bridgerland Technical College and Utah State University — which help contribute to the city's young median age of 23.8.

The Logan parks and recreation department manages the local golf course, fairgrounds, and aquatic center. During the summer, the fairgrounds host numerous fairs, rodeos, and demolition derbies. In the winter, Logan opens its outdoor skating rink at Merlin Olsen Park. Year-round, residents can keep themselves entertained with hiking and camping in Logan Canyon, joining classes at Logan Library, or attending performances at the Ellen Eccles Theatre.

The benefits of a good real estate agent

If you're just researching affordable places to live, you might wonder why you need a real estate agent already? They're the ones that help you once you've already decided on a house, right?

Not necessarily. The truth is, it's never too early to start looking for an agent. In fact, talking to a realtor early on in the process can help narrow your search for a new place to live even faster than researching on your own.

A real estate agent's job is to know everything about their local area. They'll find the best deals in desirable neighborhoods — and might just help you snag your dream home for an affordable price. Let a Clever agent help you narrow down your options today!

Methodology

We selected the most affordable cities by analyzing each city's price-to-income (PTI) ratio, which is calculated by dividing each city's median home value by its median household income (both from the latest US Census). While cities with PTI ratios close to or below 2.6 were considered, we looked beyond housing costs alone to determine each area’s affordability.

We reviewed factors such as median rent prices, costs of living, taxes, health care, and city-specific expenses using the latest US Census Bureau data, Payscale's Cost of Living Calculator, and Data USA. Crime statistics were gathered from NeighborhoodScout, CrimeGrade.org, and the FBI.

Furthermore, we included honorable mentions for most categories to account for more individual preferences, such as school systems, transportation options, and culture and entertainment.

Finally, we narrowed our top five cities to those with at least 10,000 residents.

Frequently asked questions about affordable places to live in Utah

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The post Most Affordable Places to Live in Utah appeared first on Semya-Moya.

The Peach State has something for everyone, with diverse and upcoming cities like Atlanta to historic ones like Savannah. With the state's combination of historic charm, Southern hospitality, and a booming film industry, it's no wonder that people are looking for ways to move to Georgia on the cheap.

However, that might not be as easy as it sounds. From 2010 to 2020, Georgia's population grew by 10.6% — that's over a million new residents in a single decade. That means finding a cheap place to live in Georgia can be a bit tricky.

One way to overcome this hurdle is to make sure you're working with an expert real estate agent. They'll know how to scour local Georgia neighborhoods to find hidden gems that meet your budget.

At Semya-Moya, we can match you with agents in any area you're interested in — whether you want a charming cottage in Rincon or a modern apartment near South Fulton. You can even look in multiple areas at the same time. You can interview as many agents as you like until you find the perfect place to call home, all at no cost or obligation to you.

The most affordable cities in Georgia

While affordability is paramount in today's market, there are still other things to consider in your search. We found not only the most affordable places to live throughout Georgia, we also took into account the lifestyle each one is most suited to. From the best for family life to the best for renters, check out our top picks:

How affordable is housing in Georgia?

The Peach State's vast economic expansion over the past decade has led to an evolving job market and made it an increasingly attractive destination — not just for individuals who want to grow their careers at one of the dozens of companies setting up shop here, but also for families and retirees looking to put down roots.

However, due to the rising demand for homes, many cities in Georgia now exceed the recommended PTI (price-to-income) ratio for potential home buyers.

According to the Federal Reserve Bank of Atlanta, home sale prices in Georgia increased by 23.8% from 2020 to 2021. This major spike means that someone earning the median household income ($61,224) would have to spend a third of their annual salary to afford a median-priced house. Increased property values also mean that many Georgia tenants are being priced out of renting in bigger cities.

Nevertheless, there are still pockets of affordability throughout the state — many of which are within an hour of major hubs like Atlanta, Augusta, and Savannah. To find you the cheapest places in Georgia, we looked at PTI ratios, costs of living, and other factors (learn more about our methodology).

Best overall: Forest Park

Just south of Atlanta, Forest Park is one of the best options for home buyers and renters. With a low PTI of 2.2 and median rent of $863, the town is highly affordable for people of all ages.

This small suburb offers plenty to keep residents busy and entertained. The town's community recreation center offers a full activities calendar, and the community organization Arts Clayton has provided programs, classes, events, and support for local artists throughout the area since 1986.

Forest Park has seven parks for families to enjoy, and parents can choose among several schooling options for their children, including eight private schools and eight public schools managed by the Clayton County Board of Education. Meanwhile, older residents can take part in activities offered at the local senior center.

Honorable mention: Augusta

The city of Augusta has a population of nearly 200,000, but it remains affordable for both homeowners (with a low PTI of 2.6) and renters (with a median rent of just $908).

Augusta has a rich history as the hometown of James Brown and an epicenter of the Civil Rights Movement. It maintains its character by ensuring all its residents — regardless of age, including veterans — can thrive and enjoy themselves.

The Augusta Parks and Recreation Department manages over 60 different parks, community centers, senior centers, playgrounds, fitness facilities, and much more. And a robust community calendar offers after-school programs, First Fridays, sports leagues, and special interest events.

Furthermore, Augusta is an age-friendly city (i.e., it involves older residents in making plans and decisions for the community). Residents aged 55 and older have access to a host of other resources, including over a dozen independent retirement communities and assisted living facilities.

Honorable mention: Cusseta

About 30 minutes from Columbus and the Alabama border lies Cusseta. With a population of just 10,470 and a PTI of 1.8, Cusseta is a great option for budget-minded home buyers looking for a small town vibe.

Chattahoochee-Cusseta is a consolidated city-county government within the Chattahoochee County School District, which consists of three campuses: the Chattahoochee Valley Academy, Chattahoochee County High School, and the Chattahoochee County Education Center. The town is also home to a recreation center, a public library, and the lovely Riverbend Park, where families and fishers can spend the day along the Chattahoochee River.

Even after you've found an affordable place to live in Georgia, moving there can be expensive. By working with a Clever Partner Agent, you'll have an expert in your corner, but you'll also be able to take advantage of Clever Cash Back.

When you use one of our agents to buy a home, you may be eligible for cash back to use on anything you want. For the average home value of $190,200, you'd pocket more money to help you move (or splurge on a great housewarming gift for yourself).

» SAVE: Get in touch with Clever to learn more

Best for families: South Fulton

Located in southwest Fulton County just outside of Atlanta, South Fulton offers excellent schools, encourages sustainability and volunteerism, and provides countless opportunities for people to get involved in the community.

Residents are encouraged to monitor the city's expenses on its OpenGov page and can suggest projects or initiatives for the government to consider. One highly successful campaign is the South Fulton Beautification Project, an ongoing grassroots project that encourages residents to reduce waste, recycle, and take part in maintaining their beautiful city.

South Fulton residents can also enjoy the Southwest and Cliftondale Arts Centers, which both host art exhibits, live performances, community artist showcases, theatrical productions, art classes, and other programs for all ages. Outdoor enthusiasts can explore South Fulton's 17 parks or check out one of the city's many recreation centers or athletic fields.

Honorable mention: Riverdale

Riverdale is located in the "Southern Crescent" of Clayton County, just 10 miles south of Atlanta. It has a low PTI of 2.0, making it highly affordable for families earning the median income of $55,972.

Like South Fulton, the Riverdale community is dedicated to volunteerism and environmentalism. Residents are encouraged to participate in local efforts and initiatives, such as the Keep Riverdale Beautiful campaign. The local Riverdale Centre hosts year-round events like festivals, concerts, and reunions, as well as ongoing programs like art classes or dance lessons.

Students have access to several schools within the city of Riverdale as well as many others within the Clayton County Public School District.

Best small town: Rincon

About 20 miles from downtown Savannah lies the town of Rincon. Despite its small population of 10,187, Rincon is actually the largest municipality in Effingham County. Residents don't have to pay any property taxes, and the town offers the lowest fees for services like water and sewage within the county.

Rincon has a low crime rate and a strong sense of community and hospitality among residents. The town's recreation department is growing rapidly, with plenty of sports programs for kids and teenagers, along with special activities for senior citizens. Residents can explore a handful of parks — including the Macomber Park Complex, Veterans Park, and Patriots Park — and golfers are sure to enjoy the Lost Plantation Golf Course.

Residents looking to give back can get involved with over two dozen local civic and volunteer organizations, such as Effingham County's Habitat for Humanity chapter, the Humane Society, the Democratic Committee, or the Effingham County High School Athletic Boosters. Effingham County is also home to more than 50 churches that residents are welcome to attend.

Honorable mention: Grovetown

Grovetown, a small community of just 14,777 about 30 minutes from Augusta, can be easy to miss. But its high affordability makes it the perfect place for newcomers to put down roots.

Grovetown's cost of living is 18.41% lower than the U.S. average. Paired with a low PTI of 2.8, residents earning the median household income of $57,769 can comfortably afford to buy a home.

If you're looking for things to do, the town's Leisure and Recreation Department frequently schedules community events and activities, such as the 4th of July festivities and farmers' markets. You can also explore the Euchee Creek Trails or Goodale Park, head to the community center at Liberty Park for fitness classes, or visit the newly renovated Grovetown Library.

Moving to an affordable place in Georgia might lighten the load on your budget — but how much? It never hurts to make sure you know exactly what you can afford before you fall in love with the perfect townhouse in Grovetown or starter home in Riverdale.

Best for retirees: Warner Robins

Warner Robins is a bustling city right in the heart of Georgia, split between Houston County and Peach County. With over a dozen parks, an aquatics center, the new North Houston Sports Complex, and the Claude Lewis Recreation Center, it offers countless opportunities for residents to maintain active and healthy lifestyles. Warner Robins is also home to the International City Golf Club, a public 18-hole golf course that has been in operation since 1958.

Citizens 55 and over can take part in social clubs to meet their peers, welcome newcomers, and spend time with other active retirees. Military veterans will also find themselves in a strong, supportive community thanks to the nearby Robins Air Force Base.

Retired residents can participate in all kinds of monthly classes and activities, including special events like the Georgia Golden Olympics, the Senior Health Fair, Lunch and Laughter, Over 80's Birthday celebration, and Ladies' and Men's Night Out.

For retirees who are looking for some assistance with daily living, Warner Robins offers two excellent senior living facilities:

• Antebellum Grove Senior Living is just 3 miles from Houston Medical Center and offers independent living options, nursing home care, memory care, and assisted living services.
• Summers Landing of Warner Robins offers independent living options, assisted living services, and memory care. Residents who want to meet others of the same faith can attend any of five different churches within a mile of the campus.

Getting excited about moving to Georgia? We don't blame you! The first step is getting paired with a Clever agent who can help you find the perfect neighborhood with all your must-haves. While you're at it, snag cash back to use on whatever you want after closing.

Best for renters: Vidalia

The "Sweet Onion City" of Vidalia is also a sweet spot for renters. Located in Toombs County, the median rent is only $578, which is $464 lower than the state average.

Vidalia is home to several parks and recreational centers where residents can enjoy fitness programs, classes, and sports. The Ed Smith Recreational Complex, the Vidalia Regional Sports Complex, and the Vidalia Aquatics Center offer programs for residents of all ages to encourage active lifestyles.

Parents will be pleased to know that the Vidalia City School System has earned the title of a Reward School: "among the 5% of Title I schools in the state that is making the most progress in improving the performance of all students over the most recent two years on the statewide assessments."

Lastly, we can't talk about Vidalia without mentioning the annual Vidalia Onion Festival in April. For over 40 years, the four-day festival has drawn thousands of visitors, been featured on The Food Network, recognized as one of the Five Don’t-Miss Festivals Across the U.S. by MSNBC, and praised as a Southeast Tourism Society Top 20 Event. Activities include air shows, carnivals, children's parades, arts and crafts shows, and — of course — Vidalia onion recipe contests.

Honorable mention: Dublin

In the town of Dublin, situated in central Georgia, residents can enjoy a low median rent of just $588, which is $454 lower than the state average.

Although Dublin is primarily known for its annual St. Patrick's festival, the town offers year-round events and activities for its 15,762 residents. It's home to Theatre Dublin, which hosts musical artists, plays and performances, orchestras, concerts, and showings of classic and contemporary films. The 18-hole Riverview Golf Course has a pro shop and an auditorium that can accommodate special events like weddings, reunions, and banquets.

The benefits of a good real estate agent

If you're just researching affordable places to live, you might wonder why you need a real estate agent already? They're the ones that help you once you've already decided on a house, right?

Not necessarily. The truth is, it's never too early to start looking for an agent. In fact, talking to a realtor early on in the process can help narrow your search for a new place to live even faster than researching on your own.

A real estate agent's job is to know everything about their local area. They'll find the best deals in desirable neighborhoods — and might just help you snag your dream home for an affordable price. Let a Clever agent help you narrow down your options today!

Methodology

We selected the most affordable cities by analyzing each city's price-to-income (PTI) ratio, which is calculated by dividing each city's median home value by its median household income (both from the latest U.S. Census). While cities with PTI ratios close to or below 2.6 were considered, we looked beyond housing costs alone to determine each area’s affordability.

We reviewed factors such as median rent prices, costs of living, taxes, health care, and city-specific expenses using the latest US Census Bureau data, Payscale's Cost of Living Calculator, and Data USA. Crime statistics were gathered from NeighborhoodScout, CrimeGrade.org, and the FBI.

Furthermore, we included honorable mentions for to account for more individual preferences, such as school systems, transportation options, and culture and entertainment.

Finally, we narrowed our options to cities with at least 10,000 residents.

Frequently asked questions about affordable places to live in Georgia

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The post Most Affordable Places to Live in Georgia appeared first on Semya-Moya.

The majority of home buyers use a realtor to help them find the perfect house. However, our recent for sale by owner (FSBO) study of 1,000 home buyers revealed that 13% of home buyers don't plan on working with an agent, and 15% who had worked with one before were unsure if they want to work with an agent again in the future.

Here are the reasons why buyers might want to buy a home without a real estate agent, the pros and cons, and the necessary steps for closing on a home so you can decide if it's the right route for you.

Can I buy a house without a realtor?

Yes! No state requires buyers to work with real estate agents. If you feel capable and comfortable taking on all the responsibilities of a buyer's agent, you can buy a house without a realtor.

However, if you're considering buying without an agent just to save money, know that typically buyers don't pay any realtor commission. And without the help of an agent, you could end up agreeing to a higher sales price.

In most cases, it's in the buyer's best interest to use a realtor. Think of a realtor as a free, professional resource who can help you find and buy your dream home. You have nothing to lose by speaking with an agent!

Semya-Moya can connect you with top-rated local agents to discuss your housing wants and needs. When you find the right match, you'll pay nothing to work with that agent to buy your house. And as a bonus, eligible buyers can get part of their home's purchase price as cash back after the sale is complete.

What does a buyer's agent do?

An experienced agent can offer priceless insights into local neighborhoods, find homes that meet your needs, negotiate with sellers, and complete real estate paperwork. Agents also have professional networks with trusted local pros who can perform appraisals, inspections, and more.

A great buyer's agent can help you with the following:

• Find properties matching your taste and budget
• Book showings and house tours
• Negotiate and communicate with listing agents and sellers on your behalf
• Assess the condition of a home and estimate its worth based on nearby comps
• Recommend local pros, such as inspectors, attorneys, and moving companies
• Attend the home inspection and renegotiate the sales price if any problems are found
• Do a final walk through to make sure your contract requirements have been met
• Assist on closing day
• Help coordinate moving logistics

» MORE: What's a Buyer's Agent?

Do I need a realtor to buy a house?

Working with a realtor can make one of the biggest purchases of your life easier and less stressful, but there are a few scenarios where buying a home by yourself might be the better option. You might not need a real estate agent if:

You know the seller

If you're comfortable negotiating directly with a trusted friend or relative who's selling a home, hiring a realtor probably isn't necessary. However, you might want to hire a real estate attorney to make sure all the paperwork and forms are correct.

You've bought and sold real estate before

If you've experienced several real estate transactions or have worked as a real estate agent before, you're less likely to require a realtor's assistance.

A FSBO seller isn't offering the buyer's agent commission

Some FSBO properties are listed by people who aren't willing to pay a buyer's agent commission. If you have not already signed an agreement with a realtor and find a FSBO home you love — and feel comfortable negotiating a deal by yourself — you might not need a realtor.

Although this is a pretty rare situation, buying without an agent could save you money under these conditions. Otherwise, if the seller refuses to offer a buyer's agent commission, you'd have to cover that fee yourself.

You're buying a new construction home

Newly constructed homes can be sold directly by the builder themselves or a realtor hired by the builder. These types of homes are often thought to be move-in ready, but there can still be underlying issues.

If you decide to buy a new construction home, make sure to take a few precautions:

• Research the builder's other projects.
• Get multiple quotes from lenders — not just the lender recommended by the builder.
• Hire a home inspector.
• Have a real estate attorney read over the purchase agreement before you sign.

Pros and cons of buying a house without a realtor

Navigating the home buying process without an agent isn't right for everyone. If you're not sure if you should hire an agent, consider the pros and cons of going through the home buying process solo.

In a nutshell, buying without an agent gives you complete control over your purchase. You'll be able to search for homes based on your exact specifications, handle negotiations on your own terms, and only look at houses you genuinely want to buy.

On the other hand, complete control also means complete responsibility. You won't have the reliable expertise or insights an agent can provide. You'll have to find local pros, coordinate your closing details, and handle all the paperwork on your own.

Does it sound like buying without a realtor isn't worth the hassle? Try Clever!

Steps for buying a home without a realtor

1. Figure out your budget and get preapproved for a mortgage

A good rule of thumb is to look for homes that cost no more than five times your gross household income. So, if you earn $100,000 per year, the maximum shouldn't exceed $500,000.

Keep your other debts and monthly payments in mind to make sure your budget won't be strained with a mortgage. Once you have an estimated budget in mind, review which types of loans you qualify for and get quotes from multiple lenders before applying for a mortgage.

2. Research the neighborhoods you're interested in and review recent sales

Look at local schools, crime statistics, property development trends, and other factors that could impact your decision to move there.

You might want to dig into local property tax rates to factor those into your budget as well.

3. Set up tours to view homes you like

When you find a home that interests you, you can call the listing agent directly or attend an upcoming open house.

If the home is listed for sale on a site like Zillow, you can also schedule a tour through the website. An agent will show you around the property, but may also try to pressure you into working with them.

4. When you like a home, ask for the seller’s disclosure

In a caveat emptor or "buyer beware" state, if the seller isn't required to disclose something, they probably won't. Caveat emptor states include:

• Alabama
• Arkansas
• Georgia
• North Dakota
• Vermont
• Virginia
• West Virginia
• Wyoming

Even in buyer beware states, sellers are required to answer direct questions about the home's condition honestly. You may want to prepare a list of questions for the seller about why they're selling, what the neighborhood is like, any past issues they've had with the home, or other relevant details that could make or break the sale.

5. Make an offer

When you submit an offer, be sure to include any contingencies.

At this stage, you might want to think about hiring a real estate attorney to review your documents before submitting the offer.

6. Hire a home inspector and get an appraisal

If you included inspection and appraisal contingencies in your offer, you'll have time to renegotiate or walk away from the sale altogether after these steps have been completed. If an inspection reveals serious problems or an appraisal comes back too low, you'll be able to use this information to bargain with the seller or listing agent.

Although most lenders only require an appraisal, getting an inspection often uncovers at least a few areas that could need repair. After the appraisal comes back and the inspection has been completed, you can negotiate any repairs you'd like the seller to make or request a lower price.

It's also worth noting that a low appraisal might cause your lender to deny your mortgage unless you can personally cover the difference between the appraised value and the listed sales price. You could try to ask the seller to lower the sales price to the appraised value, but this is unlikely in a strong seller's market.

7. Close on your home

On closing day, you should do a final walk-through before signing all the required documents, making the down payment, and paying any remaining closing costs.

When you buy with a realtor, they can help ensure that your closing costs are combined with your mortgage fees so you won't have to pay anything out of pocket. If you choose to buy without an agent, make sure you fully understand what you'll be expected to pay on closing day.

Your state may require you to hire a real estate attorney to certify the title, draft or review the deed, and/or attend the closing process. States that require an attorney for at least one part of the closing process include:

• Alabama
• Connecticut
• Delaware
• Georgia
• Kentucky
• Massachusetts
• Mississippi
• New Hampshire
• New York
• North Carolina
• North Dakota
• Oklahoma
• Rhode Island
• South Carolina
• West Virginia
• Wyoming

Real estate attorney requirements vary by state, so make sure you research the laws for your area.

Is buying without a realtor worth it?

For most buyers, working with a real estate agent is a win-win. Buyers save time finding homes they love and get expert advice during each step of the home buying process. Sellers are the ones responsible for paying the agent's commission fee, so you can work with a buyer's agent at no cost to you.

If you want to work with a local pro, find one for free with Clever while earning cash back! Clever can connect you with one with a top-performing agent in your area with just a phone call or a few clicks. And when your sale is complete, if you're a qualified buyer you can get Clever Cash Back to spend however you want.

FAQ

The post How to Buy a House Without a Realtor appeared first on Semya-Moya.

If you're making an offer on a home, an escalation clause explains that you're willing to increase your purchase price if the seller receives a higher bid from another potential buyer. Your offer will increase, or "escalate," by a specific amount above each competing offer, up to a maximum price (or "cap") that’s outlined in the contract.

Why would you do this? In a seller’s market, home buyers face fierce competition with other bidders. Including an escalation clause can help your offer stand out to the seller!

What’s in an escalation clause?

The standard verbiage of an escalation clause can vary by state or by transaction, but they include the same basic components:

• A cap: This is the highest price that you’re willing to pay for the property.
• The escalating factor: This establishes the amount of money you’re willing to pay above higher offers. This will generally be a round number between $1,000 and $5,000.
• Documentation requirements: Most buyers require sellers to provide "proof of a bona fide offer," or proof that a legitimate offer was made. Most often, a buyer will ask for a copy of the other bidder’s purchase agreement to see how much was offered.

These details make it clear to the seller that you’re willing to outbid other interested buyers without the need for additional negotiations. In other words, the clause will go into effect immediately, without requiring you to submit any more paperwork.

When to use an escalation clause

Using an escalation clause in the right situations has two key benefits:

• First, it reduces your need to go back and forth in negotiations with the seller. Since your escalation clause will kick in whenever another bona fide offer comes in, your offer will remain competitive without requiring you to get involved.
• Secondly, an escalation clause helps your offer stand out in a competitive market. It shows that you’re willing to pay more than other bidders to get your offer accepted.

An escalation clause can be especially useful if a property is expected to get multiple competitive offers, or you're planning to buy a home in a hot seller’s market, when the demand for homes vastly exceeds the number of available properties.

For better insights into your local market, talk with a real estate agent. They can help you recognize the best opportunities to use an escalation clause, including the following.

🏡 Find your agent: Clever can match you with local realtors who can help you find your perfect home!

You expect the home to get multiple offers

Including an escalation clause in your offer can help you stand out to sellers when several competitive bids will likely be on the table.

An escalation clause tells the seller that you’re willing to increase your offer as soon as another bid comes in. It will reflect your determination to purchase the property by automatically outbidding offers below your cap price.

You want to streamline negotiations

Since your offer will automatically increase if a higher bid comes in, the listing agent or seller won’t have to repeatedly contact you to ask for a new highest offer. You won’t need to submit additional offers because the escalation clause will adjust as needed to beat the competition.

When not to use an escalation clause

In some cases, an escalation clause can end up working against you. Your real estate agent might advise against adding an escalation clause if:

• There won’t be very much competition from other buyers. One downside of using an escalation clause is that it tells the seller exactly how much you’re willing to pay for the property. If there aren’t any other offers on the table, the escalation clause won’t be utilized, and the seller could simply ask for a counteroffer at your cap price.
• An escalation clause could cause you to go over budget. If you’re desperate to find a new home, it can be tempting to stretch your budget to stand out to the seller. However, your cap price should never go above what you’re comfortable spending.
• The seller is asking for best and final offers. If the seller or listing agent makes it clear that they want bidders to make their best and final offers, they may not even consider your escalation clause. In this case, it’s in your best interest to clearly state the maximum amount you're willing to pay up front.

How escalation clauses affect sellers

Many sellers like offers with escalation clauses because they can help their home close faster at a higher sales price. An escalation clause also lets the seller know the buyer’s cap price up front, which gives the seller more negotiating power. In practice, a seller could confidently counteroffer at any price up to the buyer’s cap.

Secondly, offers with escalation clauses increase without the seller or their agent needing to negotiate directly with the bidder. This streamlines paperwork and eliminates negotiating time between buyers before accepting an offer.

If you’re a seller who receives an offer with an escalation clause, you still have the freedom to choose whether to accept, reject, or counteroffer.

Remember, you’re not required to select the highest offer. You may choose to consider other perks or benefits unrelated to the sales price, such as a faster closing timeline. Always talk to your agent about the best strategy for selling your home to meet your goals!

Challenges of escalation clauses

In some state realtor associations, escalation clauses are frowned upon due to ethical and legal grey areas.

Chiefly, an escalation clause can make it challenging for a listing agent to remain unbiased and fulfill their responsibilities according to the Code of Ethics and Standards of Practice of the National Association of REALTORS®: "When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client."

If you're buying a home, you should also be prepared for any gap between the home's final appraised value and your cap.

Preventing bias

Real estate agents earn commission once their client's home sells.

An escalation clause could make it harder for an agent to keep the seller’s best interests in mind when they know the offer with an escalation clause will earn them the highest commission.

Protecting confidential information

Listing agents need permission from buyers to share their offer amounts in order to provide bona fide proof to the bidder with an escalation clause.

Buyers have every right to refuse to share this information. If an agent shares a buyer’s information without their permission, it’s both unethical and illegal.

Preparing for an appraisal gap

An appraisal gap occurs when a home’s estimated value is less than what a buyer agreed to pay. When this happens, a mortgage lender might not be willing to offer the full price of the loan, and you’ll need to pay the remaining amount. This is due to the LTV (loan to value) ratio that’s set by your lender.

Lenders set LTV ratios to calculate the risk of a loan going into default if you're unable to pay off your loan. It compares the size of your loan to the value of the property, as determined by the appraiser, and is calculated by subtracting your down payment from the sale price, dividing the loan amount by the appraised value of the property, and multiplying it by 100 to reflect the ratio as a percentage.

A higher LTV means that you have very little put down on the loan, and the bank carries the majority of the risk.

With escalation clauses, you could end up paying more on a home than you originally planned for. Let’s say you offer a cap of $110,000 for a home that’s appraised at only $100,000.

The bank needs to keep the same LTV ratio of 80%, as outlined in your mortgage approval. In this case, the lender may only offer you $80,000. and you’ll have to pay the remaining $20,000 out of your own pocket or pay private mortgage insurance (or PMI) on the loan until your LTV drops below 80%.

The role of a real estate attorney

To avoid some of these challenges, a real estate attorney can help. In fact, some states require you to use attorneys for most types of real estate transactions.

A real estate attorney can give you legal advice about contract details (such as escalation clauses) for home sales, or even draft the purchase offers themselves. This helps protect the home seller and buyer from complications after the transaction, since real estate agents can't provide legal advice.

Make sure to check with your agent to see what the requirements are in your area. If you want extra legal support, you can always contact a real estate attorney to review your escalation clause or purchase offer, even if your state doesn’t require it.

Other ways to make your offer stand out

An escalation clause isn’t always the best choice if you're bidding on a home. If you want to maintain more negotiating power, there are other options you can add in your purchase offer to make your bid more attractive to sellers.

Get preapproved for a mortgage

Getting preapproved for a mortgage means that a lender has determined the approximate amount they’d be willing to offer you. It shows the seller that you’ll have the funds necessary to buy the house at a specific price, as long as your financial situation doesn’t change.

Although preapprovals are fairly common today, it can still be reassuring for sellers to know that you’re certain of how much home you can actually afford.

Waive contingency clauses

Contingencies are conditions outlined in a contract where buyers can choose to retract their offer if issues are found. For example, if a home inspection reveals that a house needs more expensive repairs than expected, a buyer may have a contingency that allows them to back out of the agreement.

Waiving contingencies is one way to tell the seller that you’re committed to buying the property, regardless of what problems or issues may crop up. While this can definitely be appealing for sellers, you should take great care to understand the possible risks of waiving contingencies.

» MORE: What Is The Difference Between Pending And Contingent?

Make an all-cash offer

An all-cash offer can greatly increase your chances of getting accepted during a bidding war because it gives the seller extra reassurance that the deal will go through.

This is reflected in the data. According to Redfin, approximately 30% of homes sold in the U.S. in 2021 were purchased with cash, during a year with historically low inventory of homes available for sale. This is the highest percentage since 2014, when about 30.6% of houses were bought with cash.

Offer to cover the seller's closing costs or realtor fees

It’s usually the seller’s responsibility to pay for closing costs and agent commissions. Offering to cover these fees can definitely help your offer stand out more if you have the funds available.

Offer additional benefits unrelated to the sale price

Does the seller have specific needs or wants that you can leverage to make your offer stand out? For example, they might want to close within a certain timeframe or avoid making time-consuming repairs before closing. If you don’t want to use an escalation clause, consider other factors that the seller may prioritize over the sale price.

If you want to make an offer with confidence, a real estate agent can help you understand your local market conditions and options. Clever can match you with a top agent in your area and you'll get cash back in eligible states after closing!

FAQ about escalation clauses

When should I use an escalation clause?

An escalation clause can be helpful if there will be multiple competitive offers on a home and you want your bid to stand out.

How do I write an escalation clause?

Every escalation clause will contain the following components: a cap price, the escalating factor, and clear requirements for documenting other offers on the home. Your agent or real estate attorney will likely draft it for you in your purchase offer. Learn more about escalation clause components here.

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The post What Is an Escalation Clause? appeared first on Semya-Moya.

Learning how to sell a home isn't easy for first-time sellers. The process is usually confusing and time-consuming without the right guidance.

Luckily, we've got you covered with everything you need to know when selling your house. In the guide below, we'll walk you through the whole process step by step so you know exactly what to expect.

Our most important tip for homeowners: selling a house is a lot easier when you have a knowledgeable realtor on your side. Semya-Moya can help by matching you with an expert agent near you.

Clever's agent-matching service can even pair you with an agent who specializes in a specific property type — from luxury properties to mobile homes and everything in between. Best of all, you'll only pay a 1.5% listing commission!

» MORE: Want to learn about selling your house by owner or ways to sell quickly? Check out these posts instead!

• How to Sell Your House For Sale by Owner
• 4 Ways to Sell Your House Fast

Steps to selling a house

Although every home sale is unique, the general selling process can be broken down into 10 key steps:

1. Find a great realtor

Finding an experienced real estate agent can be the key to selling quickly and earning the highest profit for your house.

Even if you're not ready to sell right now, an agent can help you prepare for a future listing. Once you're ready to start selling your home, their preparation advice will ensure smooth sailing.

Additionally, a top local agent will have a good idea of how much your home is worth and which features will attract buyers.

They'll also help with the more difficult parts of selling a home, such as negotiating with buyers and completing paperwork.

When you work with Clever, we can find you a local agent who knows exactly how to make your home stand out while saving you money on listing agent commission.

2. Know when to sell

Nationally, June seems to be the best month to sell quickly and maximize profits. The average sale took 35 days and homes sold for $311,000 — 8% higher than the national average.

Source: 2019 Redfin Data Center

When kids are out of school in the late spring and early summer, it tends to be the best time for families to move. Selling in June is also a safe bet for colder states — you won't have to worry about moving in the snow!

However, the best time to sell in your state might be different.

Your agent should be familiar with the local market and have expert insights about when to list your home. Based on their own experience in the area, they'll know when the market tends to pick up or slow down

They'll also factor in your desired timeline and profit goals to zero in on the perfect time.

3. Price your home

Pricing your home competitively is one of the most important parts of selling a house.

If you value your home too high, it could turn people away. On the other hand, pricing your home too low can make people wonder if there's something wrong with it. In either case, your home will end up sitting on the market for a longer period of time.

The longer your home is listed for sale, the less desirable it becomes to prospective buyers. This is why it's strongly recommended to get an unbiased home valuation.

Here are the three most common pricing methods to value your home:

4. Prepare your home for sale

Prepping your home for sale will involve a lot of cleaning, organizing, and repairing small details around your house. Here's a general list of things to keep in mind before listing your home:

Declutter

It's time to toss or donate anything you don't need anymore. The items that you decide to keep should be put away neatly.

Neutralize

Your home's unique decor might be beautiful to you, but it could distract visitors. Try to remove any personal items around your house to appeal to the greatest number of potential buyers.

Deep clean

Scrub down every surface and sweep or vacuum every room. If you have a lot of carpet in your home, you might want to hire a pro carpet cleaner to make your home look and smell brand new.

Landscape

Spruce up your yard by mowing it regularly and doing some basic landscaping or gardening if it's in rough shape. You can also boost curb appeal by power washing your front porch and adding plants near the entrance.

Repair

Look for easy fixes and upgrades that can improve the aesthetic appeal of your home. Simple repairs like touching up paint or replacing outdated cabinet hardware can make a major difference to buyers.

» MORE: Best Home Improvements for Resale

Stage

Staged homes sell faster because they make it easier for visitors to envision themselves living there. However, staging every room can get expensive if you hire a pro.

To save money, you can do some staging yourself by:

• Repositioning furniture to make rooms look bigger
• Maximizing light by keeping curtains open, adding decorative mirrors, and keeping lamps on
• Redecorating a spare room as a home office or guest bedroom
• Removing any personal items, such as family photos, to "neutralize" your home

» MORE: The Statistics Behind Why Staged Homes Sell Faster

5. Get listed on the MLS

If you hire a realtor, they'll list your home on the local multiple listing service (MLS).

Agents use it to find properties to show their clients, and most buyers find homes to tour through the MLS.

Once your home is on the MLS, you can also share the listing on social media to increase visibility. Ask your realtor to share it with their network, too — most will be happy to do so!

Elements of a great listing

Your agent will do most of the work of listing your home. They'll typically write the descriptions, take photos, and list amenities they know buyers are looking for.

However, it's still good to know what an attractive listing looks like. Double-check to make sure your agent's listing includes the following:

• An attention-grabbing headline and opening statement
• Several high-quality photos of the inside and outside of your home
• A brief description of 250 words or fewer that includes key facts about the home, including:
  • The number of bedrooms and bathrooms
  • Total square footage
  • Lot size
  • Location
  • Recent upgrades/renovations
• A list of popular features or amenities, such as:
  • Parking or garage space
  • Private backyard or outdoor space
  • Mountain view
  • Lakefront property
  • Near transit access
  • Renovated kitchen
  • Attractive landscaping

Use photography to showcase your home

Most agents include home photography as part of their services. Before having them photograph your house, it's wise to check out their other listings to see the quality of their pictures.

If you choose to hire a different photographer, make sure to check out their portfolio and read customer reviews. You should also specifically look for photographers specializing in real estate photography.

If you want to go the extra mile, you could also hire a drone pilot to get aerial footage of your property or an indoor video tour.

6. Show your home

Showings allow potential buyers to tour your home. The most common types of showings are open houses, lockbox tours, and private showings.

Open houses last three to four hours and allow anyone to come look at the home. Open houses are more convenient and predictable for sellers, but not everyone who goes to an open house might actually be interested in buying.

If you get a lockbox, a buyer's agent can access a key and show their clients your home at any time. Lockbox tours can be more unpredictable for sellers, but they give buyers more flexibility with scheduling.

In general, if you have to host a showing as a seller, try not to hover over visitors. You should give buyers the time and space to freely wander through your house and talk with their agent in private.

Daily checklist to prep for showings

Ask your realtor to offer cookies and coffee or other refreshments for visitors (the smell of freshly baked goods will always make your home feel more welcoming!).

Plan to board your pets or ask a friend to watch them during showings.

7. Review offers and negotiate with potential buyers

When you receive an offer, don't just choose the highest amount you receive. Consider your own timeline, any contingencies the buyer included, and requested concessions.

The type of loan a buyer has matters, too. A cash offer will close the fastest since the buyer won't have to apply for a loan. A conventional loan will have the least amount of loan requirements. A VA or FHA loan will require more thorough (and time-consuming) inspections.

Prioritize offers from buyers who are already pre-approved for a mortgage. These people are far more likely to put in a serious offer since they know what they can afford.

Also, expect to do some negotiating with prospective buyers. Common negotiation points include:

• Changing the closing date
• Changing the contingency timeline
• Requesting sellers to pay for more closing costs (concessions)
• Covering the cost of repairs or repairing issues before closing

Try not to get emotional during this process. For instance, if the buyer wants $20,000 in repair credits because they think your home is in bad shape, you might feel defensive. On the other hand, you may feel frustrated after a buyer continuously rejects your counteroffers. If this happens, it might be best to walk away and consider another offer.

» MORE: Real Estate Counter Offer Etiquette for Buyers and Sellers

If you're working with a top agent, they'll be able to help you review offers and discuss the pros and cons of each. Realtors are also expert negotiators, so they'll do their best to land on an offer that works in your favor.

8. Be ready for an appraisal and home inspection

Before closing on the deal, most buyers will probably order a home inspection and appraisal.

Although you won't be involved with this, you or your agent will need to let the inspector and appraiser into your home.

A home inspector will do a complete walk-through of your house to uncover any potential problems that you weren't aware of and didn't cover in your seller disclosure form. If any serious issues are discovered, the buyer can back out of the deal if they included an inspection contingency in their offer.

A home appraisal determines the most accurate real value of your home. If an appraiser believes your home is worth less than what your buyer offered, this can cause issues. The buyer's lender won't approve them for more than the appraised value, so the buyer will either have to pay the difference out of pocket, renegotiate with you, or walk away from the sale entirely.

How to prepare for appraisals and inspections

Seller disclosure requirements

It's illegal in all states to fraudulently hide major known issues with your property from buyers.

If your house was built before 1978, you need to disclose the presence of any lead-based paint.

Each state has its own additional disclosure requirements that sellers need to be aware of. If you're in a "buyer beware" state, expect buyers to be extra cautious about the condition of your home.

It's best to be upfront and honest about any issues, even if your state doesn't legally require you to disclose certain things.

9. Complete paperwork and hire an attorney

Expect to face a lot of paperwork throughout each step of the selling process.

After you accept an offer, you'll need:

• Purchase offer form
• Contingency removal form
• Appraisal report
• Home inspection report
• Final purchase agreement
• Property deed

» MORE: 12 Key Documents Required to Sell a Property

Completing the paperwork incorrectly can result in legal complications, so you can hire a real estate attorney to look over your documents. Some states even require sellers to have an attorney review their documents or actually attend the closing to make sure everything is in order.

What are attorney states?

Notary attorney states require a lawyer for all real estate transactions. In these states, it's believed that real estate paperwork can have obscure legal terms that buyers and sellers may not completely understand. If a real estate agent tries to explain these terms, it could be argued that it's an unauthorized practice of law.

According to the National Notary Association, states that require an attorney to be present at closing or help sellers with their closing paperwork include:

• Connecticut
• Delaware
• Georgia
• Massachusetts
• South Carolina
• South Dakota
• Vermont
• West Virginia

If you don't use an attorney, your agent should have the expertise to help you work through all the paperwork. This is why it's so important to work with a knowledgeable agent you can trust.

10. Finalize the sale at closing

On your agreed-upon closing date, you and the buyer will usually meet at a title or escrow company to finish the paperwork and pay closing costs.

Closing costs can cost an average of 1–3% of the home's sale price — not including the standard 5–6% of realtor commission. These payments are made using the profit you earn after selling your home.

Closing costs typically include:

• Title and escrow charges
• Transfer taxes and recording fees
• Prorated property taxes
• Realtor commission fees
• HOA or home warranty fees

» LEARN: Real Estate Closing Costs: Find ALL the Fees You'll Pay

State-specific guides for selling your home

Want to know which disclosures are required in your state? Not sure if you need an attorney to close? Check out our home selling guides for your particular state for all the details!

Final tips

Selling a home can be a complicated and emotional process. However, there are some things you can do to minimize stress, sell quickly, and earn a high profit.

Here are our top recommendations:

Understand the value of renovations

Doing expensive renovations doesn't always lead to a major increase in property value. Before you decide to upgrade your kitchen appliances or renovate your master bathroom, carefully consider the costs and time required.

Be upfront about any property defects

If you know about a serious issue with your home, be honest about it with buyers. Trying to hide problems or defects will only harm your credibility once the home inspection is complete. Even if you're not legally required to disclose an issue, prospective buyers will appreciate your integrity and be more likely to trust you.

Choose a great real estate agent

Most of all, we recommend working with a trustworthy local real estate agent.

An experienced realtor can make the selling process go much smoother by handling the paperwork, marketing, negotiations, and much more. Check out Clever to get matched with a top agent in your area today!

FAQ

Related links

7 Benefits of Hiring a Real Estate Agent to Sell Your Home

Most home sellers hire a real estate agent. Find out all the benefits of hiring an agent — from getting help with pricing to negotiating with buyers.

What Does It Cost to Sell a House?

When you set the price of the home and start to make a budget for after settlement, consider all the costs required to sell a house.

Selling a House As-Is: What You Need to Know

Deciding whether to fix up your house or sell it "as is"? Should you fix up the imperfections or sell as is? Find out here.

The post Steps to Sell Your House: Everything You Need to Know appeared first on Semya-Moya.

New England consists of six states in the Northeastern U.S.: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. And overall, they're all very expensive to live in.

Luckily, we've compiled a list of affordable cities in New England to help you find a new place to live.

If you want to make your home purchase even more affordable, make sure you're working with an expert real estate agent. They'll know how to find you a dream home in New England that won't break the bank.

At Semya-Moya, we can match you with agents in any area you're interested in — whether you want a single family home in Naugatuck or a cozy apartment in Lewiston. If you aren't sure yet, you can look in multiple areas — or states — at the same time. You can also interview as many agents as it takes to find the perfect place to call home. Our service is completely free and there's no obligation to you.

Top affordable cities in New England

The New England region is full of charming seaside and historic towns, excellent ski slopes, Ivy League schools, thriving job economies, and amazing scenery. All of those perks make New England an incredibly popular — and costly — place to live. But, we've found the top affordable cities in the New England region so you can save when buying a home.

How affordable is housing in New England?

The standard metric for housing affordability, PTI, reveals that on the whole, all six states in New England have PTI ratios way above most people's budgets.

According to the most recent data from the U.S. Census Bureau, the PTI ratios for each New England state are:

• Connecticut: 3.5
• Maine: 3.3
• Massachusetts: 4.7
• New Hampshire: 3.5
• Rhode Island: 3.9
• Vermont: 3.6

Although all New England states have higher PTI ratios than recommended by financial experts, there are still pockets of affordability throughout the region. To help you find the cheapest places in New England, we looked at PTI ratios, costs of living, and other factors in our research (learn more about our methodology).

Best overall: Torrington, CT

Torrington is a great option for budget-minded residents, especially those commuting to Hartford, which lies about 20 miles east. Torrington's town slogan — "It's Welcoming Here!" — definitely rings true when it comes to community volunteerism and activism. Popular initiatives include the Torrington Chore Program, a volunteer-led service that performs household chores for older residents at no cost.

Parents will appreciate the high-quality education offered through the Torrington Public Schools district, especially if art programs are a priority. Torrington has been nationally ranked as "One of the Best One Hundred Communities for Music Education" 8 times and recognized by the National Association of Music Merchants Foundation for over 20 years.

Senior residents may find their new home at the Keystone Place at Newbury Brook, a complex offering independent living, assisted living, and memory care for older citizens. Keystone Place has fitness classes, arts and crafts, its own on-site movie theater, and hosts regular outings to local concerts and restaurants.

Honorable mention: Manchester, CT

Located just a few miles from Hartford, Manchester is another commuter-friendly option for home buyers on a budget. Manchester's PTI is 2.7, making it largely affordable for most residents earning the median household income of $61,631.

Manchester has plenty of fun things to do, including dozens of hiking trails, a public shooting range, a local country club, and an indoor archery range. Active retirees can enjoy events and activities hosted by Connect55+, such as fitness classes, art lessons, and movie nights.

The Manchester School District consists of 10 schools and has shown outstanding levels of commitment to students and their families during the COVID-19 pandemic. Its customized data dashboard shows the community how it's helping students succeed, and includes important data points like:

• Percentage of students reading at or above grade level
• Percentage of students scoring at or above the state average on the PSAT
• High school graduation rates

Great schools aside, once you've found an affordable place to live in New England, packing up and moving can still be pricey. When you work with a Clever Partner Agent, you'll have more than a local expert in your corner: you might also be able to take advantage of Clever Cash Back.

When you use one of our agents to buy a home, you may be eligible for cash back after closing. What's that translate to in savings?

If you're buying a $398,800 home in Massachusetts (the average home price in the state), that means you'd score cash back in free money after the sale closes.

As you can see, that's no small chunk of change! Best of all, you can use your cash back on anything you want to after closing — even application fees to get your kids into some of the best schools in the country.

» SAVE: Get in touch with Clever to learn more

Best small town: Berlin, NH

The little town of Berlin is located in the Androscoggin Valley, a scenic area between the White Mountains and the Great North Woods. Despite its small population, Berlin offers countless recreational opportunities.

Hikers and nature photographers will love exploring hundreds of miles of trails throughout the White Mountain National Forest, Jericho Mountain State Park, and Milan Hill State Park. Meanwhile, skiers and snowboarders can enjoy the nearby Black Mountain Ski Resort and Bretton Woods — the largest ski area in New Hampshire. During the summer months, Berlin residents can drive about 10 minutes to reach Moose Brook State Park, where they can enjoy camping, river fishing, hiking, mountain biking, and swimming.

The Berlin Recreation and Parks Department maintains a public recreation center, seven athletic fields and tennis courts, a dozen parks, and several playgrounds. After a long day of enjoying the outdoors, Berlin residents can check out Berlin's St. Kieran Community Center for the Arts, which hosts art exhibits, live performances, music programs, and more.

Best for families: Naugatuck, CT

Naugatuck is a family-friendly commuter city near New Haven, Connecticut, and just south of Waterbury. Naugatuck is home to the Naugatuck State Forest, Hop Brook Golf Course, Whittemore Glen State Park, and the Naugatuck Dog Park.

Families will love the several public fairs and concerts on the Town Green hosted by the Parks and Recreation Department throughout the year. Seasonal events include ice skating at Breen North Field, fall craft nights, 4th of July celebrations, summer music festivals, and the Light the Night Downtown Festival. The department also runs various youth activities, such as sports programs and summer playground programs.

Naugatuck Public Schools consist of 11 schools, from pre-kindergarten to adult continuing education. The district boasts an 84.8% graduation rate, and 80% of graduates plan to attend a two- or four-year university.

Moving to an affordable place in New England might create space in your budget — but how much? It never hurts to run the numbers and make sure you know exactly what you can afford.

A great place to start is by checking local mortgage rates — that way you can start searching for your perfect family home in Connecticut or New Hampshire without worrying about finances. Check out the map below to see what average mortgage rates are in New England.

Best for commuters: Longmeadow, MA

Longmeadow is a small commuter town located just a few miles south of Springfield, Massachusetts. Longmeadow residents are about a 30-minute drive from the career opportunities in Hartford, Manchester, and Northampton.

Commuters to these areas can take advantage of employment options in a wide range of industries, including education, healthcare, tech, insurance, energy, engineering, and finance.

However, you don't have to commute to find entertainment and fun things to do. Longmeadow offers numerous parks and recreation programs, aquatics facilities and classes, and nine different community parks.

Best for seniors: Rochester, NH

The city of Rochester offers residents art and adventure, as well as easy access to both Manchester, NH, and Portland, ME.

Active seniors and retirees can enjoy Rochester's Cornerstone Court Adult Community, strictly reserved for those aged 55 and older. The community offers a maintenance-free lifestyle, so residents don't have to worry about lawn care, snow removal, and other day-to-day chores.

Three independent living senior communities — Lincoln Terrace Home, Meadow View Manor, and Rochester Manor — offer assisted living, memory care, and hospice care and are within three miles of Frisbie Memorial Hospital.

» MORE: Buying vs Renting in Retirement: Which Is the Better Idea?

Regardless of age, Rochester offers plenty of recreational activities, events, and entertainment to keep all residents busy. Musical performances are regularly held at the Rochester Opera House and the Rochester Performance and Art Center. Golf enthusiasts can join the Rochester Country Club and enjoy playing at the Double Eagle Golf Course.

Active individuals can sign up for fitness programs at the YMCA of Strafford County and the Rochester Recreation Center, or they can enjoy public ice skating at the Rochester Ice Arena.

For those feeling especially adventurous, Rochester's Skyhaven Airport offers flight instruction through the Skyhaven Flying Club. If you've ever been curious about flying airplanes, here's your chance to take off!

Excited about settling down in New England? We don't blame you! The first step is getting paired with a Clever agent who can help you find the perfect home with all your must-haves. While you're at it, you might be able to snag cash back to use on whatever you want after closing.

Best for renters: Lewiston, ME

Although Lewiston has a higher-than-recommended PTI, residents can take advantage of a median rent of $748 — $125 lower than the national average. Residents can easily cross between Lewiston and its sister city, Auburn, using the Auburn Riverwalk just across the Androscoggin River.

Lewiston is home to the Simard-Payne Memorial Park, Range Pond State Park, and the Thorncrag Bird Sanctuary. The Lewiston Recreation Department offers sports and fitness programs for residents of all ages, in addition to a variety of annual events.

Some highly anticipated annual activities include the Liberty Fest on the 4th of July, the Great Falls Balloon Festival, and the Lewiston–Auburn Greek Festival. The Lewiston Senior Citizens also organize fundraisers, an annual "Just Us Concert," parties, and special events for residents aged 55 or older throughout the year.

Downtown, residents will find unique local restaurants, art studios, entertainment venues, quirky small businesses, and breweries. A few local highlights include the Gendron Franco Center, Forage Market, Boba, Chill Yoga Studio, and Baxter Brewing Company.

The benefits of a good real estate agent

If you're just researching affordable places to live, you might wonder why you need a real estate agent already? They're the ones that help you once you've already decided on a house, right?

Actually, it's never too early to start looking for a realtor. In fact, talking to an agent early on in the house hunting process can narrow your search faster than just researching on your own.

A real estate agent's job is to know everything about their local area. They'll find the best deals in desirable neighborhoods — and might just uncover a hidden gem at an affordable price. Let a Clever agent help you find your next home today!

Methodology

We selected the most affordable cities by analyzing each city's price-to-income (PTI) ratio, which is calculated by dividing each city's median home value by its median household income (both from the latest U.S. Census). While cities with PTI ratios close to or below 2.6 were considered, we looked beyond housing costs alone to determine each area’s affordability.

We reviewed factors such as median rent prices, costs of living, taxes, health care, and city-specific expenses using the latest US Census Bureau data, Payscale's Cost of Living Calculator, and Data USA. Crime statistics were gathered from NeighborhoodScout, CrimeGrade.org, and the FBI.

Furthermore, we included honorable mentions to account for more individual preferences, such as school systems, transportation options, and culture and entertainment.

Finally, we narrowed our options to cities with at least 10,000 residents.

Frequently asked questions about affordable places in New England

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With an abundance of wide open spaces and spectacular landscapes, it's no wonder the Grand Canyon State is one of the hottest destinations in the country — and we're not talking about the temperature. This state has everything from world-class outdoor recreation and culturally rich cities to serene small-town living.

Unfortunately, the popularity of moving to Arizona means the state's population increased by 11.9% from 2010 to 2010, creating a steep rise in home prices. However, there are still some affordable places to live in Arizona, which we'll cover below.

If you're dead set on moving to Arizona, there's one way to make sure you put your best foot forward: work with an expert real estate agent. They'll know exactly where to look to find you a new home that's in a great location without breaking the bank.

At Semya-Moya, we can match you with agents in any area you're interested in — whether you want an updated condo in Flowing Wells or a cozy single-family home near Sahuarita. You can even look in multiple areas at the same time and interview as many agents as you need to find the perfect place to call home.

Top affordable cities in Arizona

Affordability might be your number one reason for moving, but there are other factors to consider as well. To help narrow down your search for your next dream home, we took a look at factors such as top schools, best areas for retirees, and more. We found not only the most affordable places to live in Arizona, but the ones that will fit your lifestyle the best.

How affordable is housing in Arizona?

Arizona is one of the fastest-growing states in the U.S., and the increase in population is causing the cost of living, especially housing costs, to skyrocket. As real estate prices soar, so does PTI (price-to-income ratio), a standard calculation that reflects home affordability in an area.

According to the most recent data from the US Census Bureau, Arizona’s median home value is $242,000 and the median household income is $61,529. This makes the PTI ratio of Arizona 3.9, far exceeding the recommended PTI ratio of 2.6 — and putting the majority of Arizona's cities out of most people's price range.

$242,000 ÷ $61,529 = 3.9

And before you ask, renting isn't much more affordable. Arizona’s median gross rent is $1,097, just $10 cheaper than the national average.

Luckily, there are some places left that are affordable and safe to live in. To find you the cheapest places in Arizona, we looked at PTI ratios, costs of living, and other factors (learn more about our methodology).

Best overall: Flowing Wells

If you’re looking for the most affordable place to buy a house in Arizona, Flowing Wells should be at the top of your list. The median home is valued at $44,900 and the median household income is $34,581 a year. Additionally, most households pay less than $800 in property taxes per year.

If you plan to rent, the median cost is about $840 per month — $257 cheaper than the state average.

Located just outside of Tucson, Flowing Wells residents have easy access to several major attractions, including the Arizona-Sonora Desert Museum, the Pima Air and Space Museum, and Saguaro National Park. Award-winning restaurants — such as Southern fusion gastropub The Parish and authentic Tavolino Ristorante Italiano — are in the area as well.

Honorable mention: Kingman

For those who prefer an authentic desert locale, Kingman is a great alternative to Flowing Wells — and with a comparably low PTI ratio of 2.1. The median home value is $74,200 the median household income is $36,169, and most homeowners pay less than $800 in property taxes per year.

Kingman is just a short drive away from museums, entertainment, restaurants, and other attractions throughout Mohave County. Kingman is home to the Arizona Route 66 Museum, the Kingman Railway Museum, and the Mohave Museum of History and Arts. If you want to explore the outdoors, you can spend your weekends at Neal Butler Park, Lewis Kingman Park, or the Monolith Garden Trail. Then, you can wind down for the evening at the highly-rated Desert Diamond Distillery.

Even after you've found an affordable place to live in Arizona, moving there can be expensive. By working with a Clever Partner Agent, you'll have an expert in your corner, but you might also be able to take advantage of Clever Cash Back.

When you use a Clever agent to buy a home, you may be eligible for up to 0.5% cash back to use on anything you want. For the average home value of $242,000, you'd pocket $1,210 to help you move (or buy that new dining set you've always wanted).

» SAVE: Get in touch with Clever to learn more

Best for families: Sahuarita

Located just south of Tucson, Sahuarita’s reasonable PTI ratio, low crime rate, and highly rated school system makes this city an ideal choice for families with children. The Sahuarita Unified District was ranked among the top five school districts in Arizona in 2020 and boasts a graduation rate of 88%. The population also strikes a good balance between new parents and families with older children.

Plus, the town has one of the lowest crime rates in the state, making it both safe and affordable for families.

Sahuarita residents earn a higher household income compared with other Arizonans, and home values are still very reasonable. On the other hand, residents who are not ready to be homeowners pay the most expensive rent in the state: $1,350.

Honorable mention: Sierra Vista

With a larger and slightly younger population than Sahuarita, Sierra Vista is a good option in southern Arizona for families who are looking to rent instead of buy. The median gross rent of the area is $977 (below the state average).

The Sierra Vista Unified School District consists of 8 schools — all rated Highly Performing or Performing Plus by Arizona Learns — and was ranked among the top three best districts in the state.

Best for first-time home buyers: Coolidge

Conservative home costs, a younger population, and a low cost of living make Coolidge a great option for first-time home buyers who want to start building equity. Although the median household income in Coolidge is under $50,000, the average home in the area is still highly affordable.

New homeowners who prefer smaller cities will appreciate the variety of fun local events and the opportunity to join adult sports leagues, along with the unexpected savings of living in the area.

The cost of living in Coolidge is 19% lower than the national average.

You can expect relatively low housing, utility, and transportation expenses. With all those savings, you can try out a new local restaurant every week.

» LEARN: 30 Mistakes Every First-Time Homebuyer Makes

Honorable mention: Drexel Heights

Drexel Heights is a great alternative to Coolidge, with a PTI of 2.5 and proportionally low costs of living. Although slightly more expensive, the area is just west of Tucson and more densely populated if you prefer living in a bigger city.

Moving to an affordable place in Arizona might lighten the load on your wallet — but with this state's high prices, it never hurts to make sure you know exactly what your budget is. You don't want to fall in love with the perfect townhouse in Coolidge and find out it's more than you can afford. Check out the below map to see what average mortgage rates are in Arizona.

Best for retirees: Apache Junction

Arizona is a well-known hotspot for retirees, yet there aren’t enough affordable retirement communities and senior living facilities to meet the rising demands. Apache Junction, just outside of the Phoenix metro area, is one exception. With a PTI ratio of just 2.6 and median gross rent of $811, residents can enjoy the warm weather, golf courses, and other activities the region has to offer.

There are several highly rated 55+ communities and senior living facilities in Apache Junction:

• Palmas Del Sol East. Two-bedroom, two-bathroom homes start at just $70,000 here, and a full-time activities director ensures that all residents can find fun ways to fill their days.
• Brookdale Senior Living, located just 25 miles from Phoenix, offers both independent and assisted living for seniors. It’s also close to the Banner Goldfield and Mountain Vista Medical Centers.
• Visions Assisted Living provides residents with 24/7 care, housekeeping services, and social and activity programs.

Can't wait to move to Arizona? We don't blame you! A great first step is getting matched with a Clever agent who can help you find the perfect neighborhood with all your must-haves. While you're at it, earn cash back to use on whatever you want after closing.

Honorable mention: Sun City

Despite its name, Sun City isn’t actually a city — it’s an unincorporated, age-restricted community dedicated to retirees. Located in the Phoenix metro area, Sun City homes can cost from $35,000 to $350,000, giving residents plenty of housing options based on their lifestyles and budgets.

Sun City has other unexpected tax savings for residents as well: no sales tax and consistently low property taxes (ranging from just $300 to $1,300 per year).

Retirees looking for a continuing care retirement community will be pleased to know that Sun City offers options for independent living, assisted living, memory care, and rehabilitative care.

Honorable mention: Fortuna Foothills

Fortuna Foothills was ranked the No. 11 best place to retire in Arizona for 2021. With almost half of all residents aged 65 or older, the city has the highest median age (61.4) among all of the most affordable cities.

The PTI ratio is 2.6 — well within the recommended 2.6 bracket. However, renters beware: the median rent is $1,134, $37 higher than the state average.

» MORE: Buying vs. Renting in Retirement: Which Is the Better Idea?

Best for renters: Florence

Located south of Phoenix, the city of Florence is a bit pricier for home buyers. However, the median gross rent is just $827, compared with the state median of $1,097.

Florence residents can also enjoy a cost of living that’s 13% below the national average.

Compared with national figures, Florence residents pay less on average for housing, health care, and groceries.

Families who plan to rent can rest easy knowing that Neighborhood Scout named Florence as one of the nation’s 100 safest cities for 2021 — a lower crime rate than 96% of Arizona’s other communities.

Honorable mention: Yuma

For younger renters who want affordable housing options in a bustling multicultural city, Yuma is a great choice. Compared with Florence, Yuma has only a slightly higher rent ($917) and a younger, larger population — nearly 100,000 residents around 30 years old.

While there are plenty of bars, restaurants, and breweries in Yuma, its top attractions are its parks and museums. History enthusiasts will love visiting the Castle Dome Mines Museum and Ghost Town, and hikers will enjoy exploring the Yuma Territorial Prison State Historic Park and the Colorado River State Historic Park.

The benefits of a good real estate agent

You might be wondering why you need a real estate agent if you've just started researching affordable places to live. You don't need one until you've decided on a house to buy, right?

Actually, it's never too early to start looking for the perfect agent. In fact, a realtor early can help narrow your search for a new place to live even faster than researching on your own.

A real estate agent's job is to know everything about their local area. They'll find the best deals in the hottest neighborhoods — and might just help you get your dream home for an affordable price. Let a Clever agent help you narrow down your options today!

Methodology

We selected the most affordable cities by analyzing each city's price-to-income (PTI) ratio, which is calculated by dividing each city's median home value by its median household income (both from the latest US Census). While cities with PTI ratios close to or below 2.6 were considered, we looked beyond housing costs alone to determine each area’s affordability.

We reviewed factors such as median rent prices, costs of living, taxes, health care, and city-specific expenses using the latest US Census Bureau data, Payscale's Cost of Living Calculator, and Data USA. Crime statistics were gathered from NeighborhoodScout, CrimeGrade.org, and the FBI.

Furthermore, we included at least one honorable mention for each category to account for more individual preferences, such as school systems, transportation options, and culture and entertainment.

Finally, we narrowed our options to cities with at least 10,000 residents.

Frequently asked questions about affordable places to live in Arizona

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The post Most Affordable Places to Live in Arizona appeared first on Semya-Moya.

In recent years, the Garden State has become highly appealing to investors across the country. Use this guide to discover the best real estate investment opportunities and strategies for finding undervalued properties in New Jersey!

Overview of New Jersey real estate trends

New Jersey is a highly competitive market for real estate investors. Home prices surged following the 2020 Covid pandemic, with the cost of an average single-family home increasing by about $100,000 between 2020 and 2021.

The state is seeing major economic growth now that Covid restrictions have been lifted, which is also attracting more people in search of work.

Although investors may face lower profit margins in New Jersey compared to other states, there are still great opportunities in certain markets.

In this article, we'll highlight the top five real estate markets for different types of investors.

Top 5 New Jersey real estate markets in 2022

Ultimately, the best investment market for you depends on your personal goals. If you want to flip a home, you probably won't be looking for the same criteria as a vacation property investor.

Some investors focus on appreciation to avoid paying capital gains every year, whereas others like the steady stream of income that comes from long-term rentals. We've identified some of the best investment markets for multiple strategies below, but you can also use our rental property calculator to evaluate individual properties.

To find the best real estate investment market in New Jersey, we compiled data across the state. We evaluated property appreciation rates, affordability based on average income, and profitability based on the costs of renting versus buying a home. Learn more about our methodology.

» LEARN: Real Estate Investing — A Complete Guide To Getting Started

Best overall: Camden

With below-average home values, high year-over-year property appreciation rates, and opportunities for short- and long-term rentals, Camden is our top pick for investors.

About 40% of Camden residents are renters, and approximately 6,600 students attend the Camden campus of Rutgers University each year. In addition to standard rental properties, providing student housing near campus is another great option for long-term investors.

Camden also has plenty of redevelopment opportunities for house flippers or investors interested in building new properties. The city is full of older homes that haven't been updated since World War II. Modernizing these properties or building new homes will help accommodate the city's growing population.

Another perk of investing in Camden is its easy access to Philadelphia, which is directly across the Delaware River. Camden is more attainable for people who need to be near Philadelphia for work but can't afford its skyrocketing housing costs.

Best for vacation rentals: Ocean City

The Travel Channel named Ocean City "the #1 family beach community in the country," making it our top pick for vacation rental properties.

Unlike other beachfront towns, tourists visit Ocean City year-round for a wide array of events and festivities. The city is full of family-friendly activities, including eight miles of beaches, a waterpark, concerts, and annual events like car shows, block parties, parades, art shows, and holiday festivals. The consistent stream of visitors means that vacation rentals will earn steady profits all year long — not just during the peak summer months.

Furthermore, home values in Ocean City appreciate by approximately 20.16% year-over-year. If you decide to sell your rental property in the future, it'll be easy to earn a profit without having to do expensive renovations.

Best for long-term rentals: Newark

Long-term investors can confidently invest in Newark, the biggest city in New Jersey and one of the fastest-growing cities in the state. In 2020, Newark had a booming population of 311,549 residents, many of whom were priced out of other neighborhoods in the New York metro area.

However, the Rutgers Center on Law, Inequality and Metropolitan Equity (CLiME) recently released a report stating that about 47% of Newark's residential properties are owned by corporations. This is one of the highest rates in the country, so city officials are taking steps to reduce the power of these major investors. This means individual investors have a significant advantage over the large corporations attempting to take over Newark.

It's possible to earn a profit as long as units are priced fairly according to each neighborhood's median income.

Despite the concern about corporate investors, Redfin defines Newark's real estate market as "somewhat competitive." Would-be investors won't pay too much more than a property's appraised value on average, which leaves room for plenty of profit potential.

Best for house hacking: Cherry Hill

Niche gave Cherry Hill an A+ ranking in its Best Places to Live in 2021 report. Niche reached this conclusion based on the quality of the area's schools, cost of living, housing trends, employment outlook, and local amenities.

Cherry Hill is a great area for families with its strong job market, growing economy, and highly rated public schools. Homes in the city are steadily increasing in value by about 8.8% year over year, and the location makes it easy to get to major nearby cities, including New York City, Philadelphia, and Washington, D.C.

Although just 21% of Cherry Hill residents are renters, the city's medium-sized population increased by nearly 5% between 2010 and 2020. This signifies that there's a growing market for long-term rental options and house hacking opportunities.

» MORE: House Hacking — How To Live For Free With Real Estate Investing

Best for flipping: Atlantic City-Hammonton

With population growth expected in the near future and a comparatively affordable housing market, this metro area is ripe for house flippers to earn high profits.

Atlantic City was rated as the most affordable beach town in the nation by Inman in 2022, and homes are appreciating by about 17.13% year-over-year. These market conditions allow house flippers to easily find and purchase cheap properties and resell them without having to undergo major renovations to earn a profit.

Atlantic City-Hammonton Metro Area's cost of living is 6.7% lower than the U.S. average, and the Long-Range Transportation Plan includes improving public transportation options, reducing traffic congestion, creating safer conditions for cyclists and pedestrians, and repairing major roadways. These measures will help current residents find affordable transportation and have access to more employment opportunities.

Another positive sign is the homeownership rate in Atlantic City-Hammonton is about 66.9%. This shows more people are interested in buying a home than renting, which is great for house flippers who want to sell quickly.

How to find undervalued New Jersey properties

The best deals in New Jersey are homes that only need cosmetic repairs or homes with motivated sellers. Types of homes that make good investments often include foreclosures, pre-forecloses, short sales, and abandoned or neglected properties. Here's how to find them.

1. Use real estate investment software

One of the biggest challenges of flipping homes or finding rental properties in New Jersey is finding great deals. But the DealMachine app is one tool that can really help you.

DealMachine's real estate software helps New Jersey investors find distressed homes (such as pre-foreclosures, foreclosures, or short sales) and get in touch with owners fast via batch skip tracing and direct mail campaigns.

DealMachine's driving for dollars app is fast and easy to use. When you're driving around town and spot a home that could be a great deal (maybe it's been abandoned or neglected), you can send the owner direct mail through the app for huge time savings (no post office visits required).

Download the DealMachine app to find undervalued properties as you drive. DealMachine offers a 7-day free trial and $15 in free credits that can be used towards marketing (like sending out direct mail to homeowners).

Other popular real estate software or websites for flippers to consider include:

• Flipster: Primarily targeting house flippers, this app helps users find motivated seller leads, while also providing valuable comparable property information to help you estimate a home's fair market value before making an offer.
• Flipperforce: The Flipperforce app helps BRRRR method investors analyze home values to calculate the maximum purchase price to offer on a property before making a purchase.
• Stessa: Stessa's software allows you to easily track the performance and financial status of all your properties in one easy-to-use app. It provides regular reports on how profitable your properties are and can be linked to your financial accounts for automatic updates.

2. Look for FSBO homes

Investing in a FSBO (for sale by owner) property may get you a better deal since you'll be negotiating directly with the seller instead of a listing agent. Many FSBO sellers are more concerned about selling quickly than earning the highest possible profit, which can help you keep more money in your pocket.

Zillow's foreclosure center is one great resource for finding foreclosed and bank-owned properties in your area. However, unlike off-market properties you'd find on DealMachine and other software, most of Zillow's properties are publicly listed — meaning you'll likely face stiff competition from other investors.

» MORE: Use Clever's rental property calculator to evaluate off-market deals

3. Partner with an investor-friendly agent

Using an experienced realtor is the best way to ensure a favorable, easy home purchase.

Great agents understand New Jersey's different investment markets, are familiar with real estate laws, and can provide access to lesser-known neighborhoods to help you discover your dream investment property.

Clever's real estate agents can guide you through New Jersey's real estate market and make your house-hunting journey a breeze. Eligible buyers can even get cash back on their home's purchase price after closing, which could help you save thousands.

Methodology

We used data from the U.S. Census Bureau and Zillow to determine which cities offer the greatest investment opportunities. For each city, we considered the median mortgage cost, average rent prices, median household income, and annual property appreciation statistics.

We also considered how successful different types of investments — such as house flipping, vacation rentals, and traditional single-family homes — may be in each market to help investors reach their goals.

Frequently asked questions

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The post Top 5 Best Real Estate Investment Markets in New Jersey appeared first on Semya-Moya.

Alabama's affordable housing market and low cost of living make it a great place for beginner investors. There are opportunities for all kinds of investment properties, ranging from vacation homes to house flipping to traditional long-term rentals.

Discover the five best real estate investment opportunities in the Yellowhammer State with this guide!

Overview of Alabama real estate trends

Most Alabama homes are less expensive than the nation's average and have lower property taxes. The state's average home is valued at about $211,090, which is less than half of the national median sales price. The 68.6% homeownership rate is slightly higher than the nation's average of 63.8%, but there's still plenty of demand for rentals.

Alabama's population has also steadily increased in the last decade, due in part to affordable housing options. Between 2010 and 2020, the overall population increased by 5.3%. Thanks to growing demand, Alabama properties have higher year-over-year appreciation rates than average.

Consistent growth, low interest rates, and affordable cost of living have made Alabama an appealing state for investors. If you're looking to invest in Alabama real estate, we've narrowed down the top five cities for maximizing your profits.

Top 5 Alabama real estate markets in 2022

Ultimately, the best investment market for you depends on your personal goals. If you want to flip a home, you probably won't be looking for the same criteria as a vacation property investor.

Some investors focus on appreciation to avoid paying capital gains every year, whereas others like the steady stream of income that comes from long-term rentals. We've identified some of the best investment markets for multiple strategies below, but you can also use our rental property calculator to evaluate individual properties.

To find the best real estate investment market in Alabama, we compiled data across the state. We evaluated property appreciation rates, affordability based on average income, and profitability based on the costs of renting versus buying a home. Learn more about our methodology.

» LEARN: Real Estate Investing — A Complete Guide To Getting Started

Best overall: Huntsville

U.S. News named Huntsville as the #1 best place to live in its nationwide 2022-2023 report, but it's also a top pick for investors. Although the average Huntsville home costs around $308,218, this city is still more affordable than the national average.

The homeownership rate here is around 56.7%, indicating there's a ripe market for both short- and long-term rental opportunities. Average homes in Huntsville also have the highest year-over-year appreciation rate in the state at 22.58%.

However, if you want to invest in Huntsville, you shouldn't wait too long. The city is growing so rapidly that it became the most populated city in Alabama in 2020, surpassing Birmingham. The increased competition for housing will likely drive up home prices in the near future, which may end up pricing some investors out.

Best for vacation rentals: Birmingham

Birmingham's tourism industry has made a strong recovery since 2020, making it our top pick for vacation rental properties.

The greater Birmingham area attracted approximately 3.6 million overnight visitors in 2021, according to a report from the Greater Birmingham Convention & Visitors Bureau (CVB). In fact, the entirety of Jefferson County attracts visitors year-round. As a whole, the county brought in about $2.2 billion in revenue from tourists in 2021.

Birmingham is home to several tourist attractions, such as the Birmingham Civil Rights Institute, the Birmingham Museum of Art, and the Barber Vintage Motorsports Museum. The city is also colloquially known as the "Dinner Table of the South" thanks to its impressive variety of chef-owned restaurants.

Birmingham was also listed among the 22 Best Places to Visit in 2022 by Conde Nast Traveler. Whether you buy in Birmingham or close to it, it's clear this area is prime for short-term and vacation rentals.

Best for house hacking: Tuscaloosa

The term "house hacking" usually refers to home buyers who rent out rooms or units to tenants to pay the home's monthly mortgage. If you're interested in house hacking, it's important to look for a place like Tuscaloosa that has a high number of renters and healthy rent-to-income ratios.

Tuscaloosa's population grew by 10.09% between 2010 and 2020, but homes still remain relatively affordable. The median home price in Tuscaloosa is $221,472, which is just slightly higher than the statewide average of $211,090.

One of the highlights of the city is the University of Alabama campus, where around 38,000 students attend every year. House hackers who purchase a property near campus likely won't have any trouble finding long-term renters!

» LEARN: House Hacking — How To Live For Free With Real Estate Investing

Best for house flippers: Dothan

Dothan is our top pick for house flippers since it has relatively inexpensive homes that have high year-over-year property appreciation rates.

Dothan was the 12th fastest-growing city in Alabama between 2010 and 2020, with its population increasing by 8.51%. About 59.6% of Dothan residents are homeowners, and record-low interest rates have been attracting more people who want to buy instead of rent.

Due to the growing demand, homes are selling faster than average — a positive sign for flippers. Dothan Area Chamber of Commerce President Matt Parker stated he expects the real estate market to continue heating up "as long as the area continues to invest in infrastructure to support the growth."

Parker also notes that he wants to see continued improvements in the city's educational system, economic outlook, and other key factors that impact the area's real estate market. This is great news for house flippers, as this will make Dothan a desirable market for the foreseeable future.

Best for landlords: Auburn

Cities with a high percentage of renters, average home prices, and healthy rent-to-income ratios are great for landlords or long-term rental property owners. The city of Auburn checks all of these boxes, which shows promising signs for investors.

Between 2010 and 2020, Auburn's population grew by 43%. There are slightly more renters than homeowners here, which is partially due to the large student population at Auburn University. About 24,000 undergrad students attend the college every year, so there's always high demand for student housing near campus.

Auburn properties increase in value by about 17.57% year-over-year, and Redfin describes Auburn as "somewhat competitive." With the average home selling just 14 days after listing, investors need to be quick to get their offers in, but this steady market will pay off.

How to find undervalued Alabama properties

The best deals in Alabama are usually homes that only need cosmetic repairs or homes with motivated sellers. Types of homes that make good flips often include foreclosures, pre-forecloses, short sales, and abandoned or neglected properties. Here's how to find them.

1. Use real estate investment software

One of the biggest challenges of flipping homes or finding rental properties in Alabama is finding great deals. Here's where the DealMachine app can be highly valuable.

DealMachine's real estate software helps Alabama investors find distressed homes (such as pre-foreclosures, foreclosures, or short sales) and get in touch with owners quickly by using batch skip tracing and direct mail campaigns.

DealMachine's driving for dollars app is fast and easy to use. When you're driving around town and spot a home that could be a great deal (maybe it's been abandoned or neglected), you can send the owner direct mail through the app.

Download the DealMachine app to find undervalued Alabama properties as you drive. DealMachine offers a 7-day free trial and $15 in free credits that can be used towards marketing (like sending out direct mail to homeowners).

Other popular real estate software or websites for flippers to consider include:

• Flipster: Primarily targeting house flippers, this app helps users find motivated seller leads, while also providing valuable comparable property information to help you estimate a home's fair market value before making an offer.
• Flipperforce: The Flipperforce app helps BRRRR method investors analyze home values to calculate the maximum purchase price to offer on a property before making a purchase.
• Stessa: Stessa's software allows you to easily track the performance and financial status of all your properties in one easy-to-use app. It provides regular reports on how profitable your properties are and can be linked to your financial accounts for automatic updates.

2. Look for FSBO homes

Investing in a FSBO (for sale by owner) property may get you a better deal since you'll be negotiating directly with the seller instead of a listing agent. Many FSBO sellers are more concerned about selling quickly than earning the highest possible profit, which can help you keep more money in your pocket.

Zillow's foreclosure center is one great resource for finding foreclosed and bank-owned properties in your area. However, unlike off-market properties you'd find on DealMachine and other software, most of Zillow's properties are publicly listed — meaning you'll likely face stiff competition from other investors.

3. Partner with an investor-friendly agent

Using an experienced realtor is the best way to ensure a favorable, easy home purchase.

Great agents understand Alabama's different investment markets, are familiar with real estate laws, and can provide access to lesser-known neighborhoods to help you discover your dream investment property.

Clever's real estate agents can guide you through Alabama's real estate market and make your house hunting journey a breeze. Eligible buyers can even get cash back on their home's purchase price after closing, which could help you save thousands.

Methodology

We used data from the U.S. Census Bureau to determine which cities offer the greatest investment opportunities. For each city, we considered the median mortgage cost, average rent prices, median household income, and annual property appreciation statistics.

We also considered how successful different types of investments — such as house flipping, vacation rentals, and traditional single-family homes — may be in each market to help investors reach their goals.

Frequently asked questions

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Real Estate Investing - A Complete Guide To Getting Started

Learn about investing in real estate as an active investor with rental properties or flipping houses, or as a passive investor in REITs, mutual funds, or online platforms

The Ultimate Beginner’s Guide to Flipping Houses

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Top 5 Best Real Estate Investment Markets in Alabama

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The post Top 5 Best Real Estate Investment Markets in Alabama appeared first on Semya-Moya.