Let’s say you’ve done your due diligence and have gotten prequalified for a home loan before you start shopping for a house. The reason early prequalification is so helpful is because it will alert you (and your loan officer and your realtor) to the price range you can afford to buy in.
Now let’s say you were prequalified for a home loan at or around $250,000. Depending on where you live, this sizable sum could get you a humble home or a large suburban space. It all depends on region, location, and current market values.
Housing prices can fluctuate greatly from market to market. And even in the same market, Mark Ferguson, real estate agent, real estate investor, author, and creator of InvestFourMore.com, explains. For example, Ferguson says, “In Greeley, Colorado, the median price for homes in 2011 was about $110,000. And in 2017, the median price is approaching $280,000!”
In a state like Colorado, Ferguson says, $250,000 could buy more than twice the house it could just six years ago than it can today.
Local economies can greatly influence housing prices, though The National Bureau of Economic Research confirms that population income and growth rates, the size of an area, and construction costs can also come into play. “Some areas may react faster or more strongly to a given economic shock than other areas,” the Bureau states. Based on your local economy and contributing factors, your home loan amount may yield different results than what you could buy in another state.
How much house can you get for $250,000?
You can find the answer to that question — and a whole lot more — in our free LoanFly app, made for borrowers just like you. Through each step of the loan process, LoanFly will let you know what your loan officer knows when they know it. You’ll get to see exactly what is going on with your loan anytime, anywhere, from an internet-connected device.
With our handy and totally free app, you can search for houses and apply for a loan without ever leaving the house.
If you’re looking for a new home, here’s a sample of what $250,000 will get you in the nation’s five most-populated cities, taken from our LoanFly app:
1. New York City, New York.
Nothing! Sadly, you’ll be hard-pressed to find a new house in the Big Apple in the $250,000 price range. But right across the Harlem River, you could snag a 1 bedroom, 1 bath, 616 square-foot condo for $235,000. Bonus: This condo has storage in the basement.
2. Los Angeles, California.
In the City of Angels, you’re going to have the best luck getting a house within your price range if you stay close to city limits. There, you’ll find a “fixer-upper” with potential. 2 bedroom, 1 bath, 575 square-foot for $250,000.
Cornerstone is in your corner. And probably in your neighborhood too. Click here to find a location near you.
3. Chicago, Illinois.
Many parts of Chi-town are up-and-coming (i.e., being renovated), so single-family homes are easier to come by. Do some digging, and you might see a remodeled 1,800 square-foot “charmer” with 4 bedrooms, 3 baths, granite counters, stainless appliances, and an open oak staircase. All for $249,900.
4. Houston, Texas.
Everything’s bigger in Texas. Including its real estate potential. Large, updated homes are the rule and not the exception in many areas of Houston, a fast-growing metropolis close to the Texas coast. If you want a large backyard and plenty of elbow room, you can get it for $235,000. A 2,816 square-foot, 5 bedroom, 3 bath, brick home.
Buying house can be intimidating when you don’t know what to expect. Click here for a quick introduction to homeownership.
5. Philadelphia, Pennsylvania.
Living up to its name, the City of Brotherly Love has plenty of multi-family housing, often in row units. You could snag a home close to entertainment for $249,900. 1,000 square-foot with 3 bedrooms and 1 bath.
Before you start house-hunting, remember this
House-hunting online can be fun, as you saw in our comparisons. But when shopping within your home loan price range, it helps to remember that what you see on a housing search engine like Zillow may not always be what you get. “The information on Zillow is not updated in real time. The valuations from Zillow are also based on property tax records. They do not take into account the things like upgrades or the overall property condition,” John Powell, Chief Development Officer, Help-U-Sell Real Estate, says.
If you’re looking for a more accurate reflection of homes within your price range, start by downloading our free LoanFly app. Search for your dream home in our nationwide database of available homes that stays up-to-date. You can also plug in your personal information to get prequalified, if you haven’t already. From there, use the app as a home-buying helper. Track your loan and stay in touch with your loan officer until closing day.
For educational purposes only. Please contact your qualified professional for specific guidance.
Sources are deemed reliable but not guaranteed.