The Best Place To Buy A Home And Get The Most For Your Money, According To An Expert - Exclusive

Whether you are purchasing your first home, moving on from your current residence, or buying a property to flip, you always want the best return on your investment. If you are not dead set on a specific location, it helps to do your research and check out what the cost of buying a home from state to state is. House prices can vary dramatically depending on where you live so a two-bedroom home in Kansas City will surely not be the same price as the identical type of home in New York City. If you are looking for the cheapest places to buy a home in America, it can be an ideal way to make every dollar of your real estate budget count.

Investing your money into the housing market is still one of the smartest ways to build your net worth, according to CNBC. In an exclusive interview with House Digest, real estate agent and co-founder of Brotherly Love Real Estate in Philadelphia, Jon Sanborn, tells us, "One of the primary reasons humans buy property is to build their portfolio and wealth." However, he warns that "when you are looking for homes in a pricey area, there is no way that you will receive the best value for your money as the wealth will get churned up by mortgage." So where exactly in the United States does Sanborn think people will get the best bang for their buck? Read on to find out his recommendations.

It may be worthwhile to invest in the Motor City

If you want that metropolitan feel but New York and Chicago just aren't in the budget, then it may be worth looking to Detroit as a place to lay down your roots. That being said, Detroit has been hit with hard times, including the municipal bankruptcy of 2013 and, of course, issues related to the COVID-19 pandemic. However, with plans for new factories on the way and an $800 million influx from the American Rescue Plan introduced by President Joe Biden, according to Michigan Radio, things in the Motor City seem to be zooming forward.

Real estate expert Jon Sanborn told House Digest why he sees Detroit as a positive place to purchase a home. "The presence of the tech industry featuring Google, Microsoft, and LinkedIn, Detroit has attracted people from all over," he says, adding, "The jobs have increased the homebuyer presence by almost 37%." Sanborn also notes the relatively low cost of housing in the city at the moment where homes are selling for $67.5K on average, according to Realtor. This could be a major boost for homebuyers. "Earners in Detroit only spend around 7% of their monthly income on mortgage payments, which is quite low," Sanborn mentions. "Detroit also offers a live, work, and play setup for residents by providing residential, work, and opportunities to relax within walking distance."

Here are a few other cities to look out for

If making the move to Michigan doesn't quite suit your needs, then Jon Sanborn has a few other cities that should be on your radar if you want to get the most out of your real estate investment. According to Sanborn, "Other than Detroit, Cleveland in Ohio and Rochester in New York have become most popular." With the average Cleveland home selling for $128K — as per Realtor — and an average sale price of $181.5K in Rochester — according to data collected by Realtor — it still places them far below the country's median real estate price tag that stretches just north of $356K, as per Zillow.

But that is not the only reason that Sanborn feels these two cities stand above the rest. According to him, "The former is a preference for countless medical professionals due to the brand new Cleveland Innovation Project that plans to deliver remote and community healthcare." This can be a major draw for those looking to relocate to a new city that is on a positive upward trend. Sanborn also notes that with regard to Rochester, "[It] offers excellent opportunities for people who want to leave Manhattan for more space and affordable housing." This enables people to afford larger properties but still be under a six-hour drive to a major metropolis. So if you're looking to really bank on your housing investment opportunity, it could pay off to keep these cities in mind.