33.5% of homes are selling below the listing price, up by 4.9 pt Y-O-Y in Baltimore. Also, on a median listing price of $237,600, you can get a home for $1M. This indicates that you can have an upper hand and save thousands of dollars while buying a home.
In addition, the number of homes for sale surged by 53% to 2,525. Besides this, homes are spending 35 days on the market. This gives you more room to negotiate the price and get your dream home at your cost!
However, it’s important to know how to make your Baltimore dream home a reality. With government-backed loans like FHA mortgages, you can enjoy a low down payment of just 3.5%.
You can also consider buying an FSBO home. It costs 23% less than traditional homes. This means on a median sale price of $237,600, you could save $245K. That’s huge!
Also, the buyer agent commissions have become negotiable after the NAR settlement. So, you must prepare your offer contract wisely and don’t fall prey to any litigation or risks.
Now that you know some of the key considerations, let’s explore the steps of buying a home in the Charm City in 2024.
How to Buy a House in Baltimore in 5 Steps
Here are five simple steps that you need to take to buy a house in Baltimore:
Step 1: Check Your Financial Health
You must evaluate your budget before you buy a house. Here’s what you need to do:
- Check Your Credit Score: Your credit score determines how much you can borrow and the interest rates you qualify for. You can obtain a free credit report from Equifax, Experian, or TransUnion.
- Find Your DTI Score: Lenders use the DTI score to determine your eligible mortgage amount. A DTI of 36% or lower is ideal. To calculate your DTI ratio, divide your monthly debts by your gross monthly income.
- Determine Your Budget: You can use a mortgage calculator to determine the maximum house price that fits within your budget. Additionally, ensure you get the best deal by checking if the seller has priced the house correctly using our free house value estimator.
Step 2: Find the Right Mortgage and Plan for the Down Payment
The average down payment on a house depends on the type of mortgage you opt for. A higher down payment reduces the amount you need to borrow and lowers your monthly mortgage payments. Consider the following loan options:
| Loan Type | Minimum Down Payment | Best for |
| Conventional Loan | 20% | Strong credit score & steady income homebuyers |
| FHA Loan | 3.5% | First-time homebuyers |
| VA Loan | 0% | Veterans & eligible service members |
| USDA Loan | 0% | Rural homebuyers (income limits apply) |
👉 Don’t have money for a downpayment? VA loans and USDA loans can help you buy a house with no money down in the Charm City.
Step 3: Get a Mortgage Pre-approval Letter
It’s crucial to get a mortgage pre-approval before you start house hunting in Baltimore. A pre-approval letter shows the seller that you are a serious buyer. It also helps you negotiate better in a competitive market.
Apply for Pre-Approval
Choose Your Loan Type
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New Home Purchase
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Mortgage Refinance
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Cash-out Refinance
Step 4: Start Your Home Search
Now that you’re financially prepared, it’s time to find your dream home! Traditionally, home buyers rely on real estate agents to navigate listings on the MLS and local inventory. But there are other ways to find a house in Baltimore:
- Search for Listings Online: Use online platforms like Houzeo and Redfin to explore houses for sale in Baltimore. Look for neighborhoods that cater to your needs.
- Consider FSBO (For Sale By Owner): Look for Baltimore Homes For Sale By Owner listings to bypass Realtor commissions and negotiate directly with sellers.
- Visit Open Houses: Attend open houses to understand different neighborhoods and property types.
💡 Pro Tip: Search Properties Without a Realtor!
High tech house hunting sites like Houzeo allow you to buy a house without a Realtor. With Houzeo’s mobile app, you can easily search for homes by location, mark your favorites, schedule showings, and make offers.
Step 5: Make an Offer and Close the Deal
Once you find your dream home, it’s time to make an offer and close the deal. Here’s how:
- Submit Your Offer: Decide on a competitive price and offer terms based on the fair market value and your budget. Then, draft a letter that includes price, terms, and contingencies. Finally, negotiate effectively to reach an agreement with the seller.
- Schedule a Home Inspection and Appraisal: Once your offer is accepted, find a home inspector in Baltimore to uncover any issues. Your lender will arrange a home appraisal to ensure the property’s value aligns with your offer.
- Close the Deal: Review the closing disclosure, which outlines the final loan terms and expenses. Budget for closing costs, which can be 2% to 5% of the purchase price. You can sign the paperwork and receive the keys to your new home.
👉 Buyer Closing Cost Calculator: Estimate your closing cost as a buyer in Baltimore.
Is It Smart to Buy a House in Baltimore?
Buying a house in Baltimore now is a smart move as houses are staying longer on the market and are sold below the list price. Plan your down payment and closing costs in advance to avoid falling short of cash. Likewise, maintain a healthy credit score to avoid getting rejected at the time of pre-approval.
It’s not easy to close on a house but careful planning and pre-approval can put you ahead of the competition. To further enhance your home-buying journey in Baltimore, consider using online real estate platforms like Houzeo.
Find Your New Home in Baltimore With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale in Baltimore, MD on Houzeo.
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Frequently Asked Questions
Is Baltimore a good place to buy a home?
Yes, Baltimore is one of the best places to buy a house in Maryland. It’s known for its neighborhoods like Fells Point and Canton, renowned schools such as Baltimore Polytechnic Institute, and easy access to Washington D.C. Residents love the city's mix of historic rowhouses, waterfront views, and thriving cultural scene.
How much does it cost to buy a house in Baltimore?
The average cost to build a house in Baltimore, MD is $145 per square foot. But the price can vary based on factors such as the property type, square footage, and the customizations you decide upon.
How much is a down payment on a house in Baltimore?
The down payment on a house in Baltimore depends on the type of mortgage you choose. For a conventional loan, you have to put down 20%, whereas for FHA loans you have to put 3.5% money down.
