First time home buyers in Washington State face many challenges in 2024 and are feeling hopeless that they won’t be able to find a home or get into real estate to build equity and wealth.
You’ll need to make some compromises but here are 11 creative home buying solutions our home buyers are utilizing to buy their first home/property in Washington State.
Finding Lower Priced Homes
Prices have skyrocketed in Washington State, and are continuing to rise, year over year. We highly recommend not waiting for home prices to come down. Consider exploring other real estate markets in Washington and searching for different property types as a first time home buyer.
- Explore Emerging Markets (Solution 1): Look beyond high-demand areas when buying like Seattle and search within emerging neighborhoods or smaller cities where prices for homes are more affordable. The most affordable homes in the range of $300-500k are located in the southside and western sides of Washington state in places like Puyallup and Spanaway. We would also recommend buyers to looks for homes in rural areas like Carnations and Port Orchard.
- Consider Different Property Types (Solution 2): Consider different types of properties, such as townhomes, condos, or fixer-uppers, which offer a better value for buyers with a smaller budget. Your first time home does not have to be a home, it can be a property. Many buyers are first purchasing a townhouse or condo, living in it to build enough wealth to purchase a home as a second property. Here are the most affordable townhomes and condos in Washington state. Keep in mind that most townhomes and condos come with HOA fees.
Washington’s Housing Inventory
In Washington state the market here fluctuates often from bidding wars for desirable homes to homes sitting on the market for too long because of affordability issues. As a buyer, you need to expand your search and use an experienced agent to find you the best deals when looking to buy your first home in Washington.
- Expand Search Areas (Solution 3): Broadening your search to include nearby towns or suburbs to increase the number of homes. There are tons of homes outside the major metro city areas, and if you work from home these are perfect to buy and fix up to sell for more later.
- Work with an Experienced Real Estate Agent (Solution 4): An experienced real estate agent will provide insights into homes before they hit the market and can help you navigate competitive offers. Utilize a buyers agent to find the best deals based on your criteria. Schedule viewings and advisory calls to find the perfect first time home in Washington.
Solutions for High Interest Rates
Many of our first time home buyers have been using lender programs to purchase property in Washington State. There are several different home buying programs you can utilize to lower your interest rate. Here are three you should consider.
- First-time homebuyer loans and programs (Solution 5):
- Low-down payment conventional loans: Conventional loan programs that require just 3 percent down
- Down payment assistance (DPA) programs: Loans, grants and matching programs to help you with your down payment and closing costs
- Federal first-time homebuyer programs: Loans and programs backed or offered by the federal government
Competition with Investors
In Washington State there are a ton of investors buying up lower priced fixer upper homes to flip. We recommend you get pre-approved and utilize an agent to help you negotiate a winning offer.
- Get Pre-Approved (Solution 6): Having a mortgage pre-approval can strengthen your offer and make you more attractive to sellers in Washington. It shows sellers that you're a serious first time home buyer and that you can secure a mortgage. This ensures you are able to close on your home once an offer has been made.
- Be Flexible with Your Offer (Solution 7): Consider offering a flexible closing date or other terms that might appeal to sellers in Washington. To show flexibility and urgency, you may want to limit or waive some contingencies, such as inspection or appraisal, or offer to pay for them yourself.
Affordability Concerns
Unfortunately Washington is one of the most expensive states to live in across the nation but there are ways to find affordable options for first time home buyers.
- Increase Down Payment (Solution 8): A larger down payment will reduce the amount needed for a mortgage, the more money you put down, the lower your monthly payment will be. With the right priced home this makes it affordable to buy a first time home in Washington. Here are creative ways to lower your down payment.
- Consider Alternative Financing Options (Solution 9): There are Washington state and local programs that offer assistance for first-time buyers or lower-income individuals.
Long Commutes & Compromises
When buying your first home you will need to be aware of Washington work commutes and heavy traffic. Many of our first time home buyers compromise on commuting.
- Consider Remote Work (Solution 10): If possible, negotiate remote work options with your employer to make longer commutes more manageable. Many of our first time home buyers who work in tech and in the military have been finding success when shopping for homes.
- Explore Transit Options (Solution 11): Look for properties near public transportation routes to reduce commute times and costs. There are 32 local government transit agencies in Washington State and many residences utilize the light rail to travel into the major cities. They are a lot faster and cheaper than having to deal with traffic all day. An Orca card only cost $3!
Conclusion
Buying a home for the first time can be daunting!
If you’re a first time home buyer looking to purchase property in Washington State and don’t know where to begin, our home buying real estate advisors will help you navigate the market in Washington State.
Feel free to reach out with any questions. We have helped over 120 clients find their perfect home and are always welcome to helping you find your first home.
