What Type of Home Fits My Budget?
Personalized Advice from Tim Scheib, Des Moines Real Estate Professional with Real Broker
When you start your homebuying journey in Des Moines, one of the first questions to answer is: “What type of home fits my budget?” Navigating this process isn’t just about numbers—it’s about lifestyle, opportunity, and long-term financial health.
Step 1: Define Your Financial Framework
Before you fall in love with any listing, take a close look at your total budget. Start with your pre-approved mortgage amount, then factor in your down payment, closing costs, and savings for immediate post-purchase needs (furnishing, moving, minor repairs). I recommend setting aside at least 1-2% of the home price for unexpected expenses upon move-in.
Monthly Payment Comfort Zone
Most financial advisors suggest that your total monthly housing expense—including mortgage, taxes, insurance, and HOA fees—shouldn’t exceed 28–33% of your gross income. This keeps your budget healthy and leaves room for other necessities and savings. In Greater Des Moines, this estimate is very achievable, with monthly payments for typical homes ranging from $1,200 to $2,500 depending on price, location, and loan terms.
Step 2: Factor in Location
Different neighborhoods and suburbs in Des Moines offer homes at various price points. For example:
Urban condos and newly constructed downtown lofts may come at premium prices with HOA fees.
Established neighborhoods offer charming older homes—sometimes with more space and character.
Suburbs like West Des Moines, Ankeny, or Waukee may provide newer homes with modern features at competitive prices, plus access to excellent schools and parks.
As you clarify your budget, consider your location priorities: commute, schools, amenities, lifestyle, and community vibe. I help clients balance these factors to maximize both financial value and everyday enjoyment.
Step 3: Match Home Types to Budget
Depending on your price range, here are options you might consider:
Starter Homes: Perfect for first-time buyers, these are typically two or three-bedroom properties, often priced from $175,000 to $250,000 in Des Moines.
Townhomes & Condos: These offer maintenance convenience for those who prefer worry-free living. Expect prices from $150,000 to $300,000, depending on size, location, and amenities.
Single-Family Residences: The backbone of Iowa’s market, available in virtually every neighborhood and price range.
New Construction: More expensive but energy-efficient and under warranty; choose developments carefully for growth potential.
Luxury Homes: If your budget exceeds $500,000, the metro offers stunning estates and custom builds in coveted districts.
Step 4: Look Beyond the Listing Price
Remember, the purchase price is just the beginning. Account for property taxes (which vary by city and school district), insurance, utilities, and special assessments (sometimes seen in new developments). Your lender and I will break down the projected monthly payment with precision so there are no surprises.
Step 5: Prioritize Value and Growth
Choosing a home isn’t only about fitting today’s budget—think resale appeal, community stability, and future equity potential. I work with clients to identify neighborhoods on the rise, upcoming infrastructure improvements, and homes with timeless features.
Tools and Planning
I leverage local MLS tools and Comparative Market Analysis (CMA) to find options in your price range and show you “average price per square foot” across neighborhoods—a key metric for finding the best value.
Step 6: Flexibility and Creativity
If the perfect home is just out of reach, consider small compromises—like adjusting location or size—that can save thousands. Conversely, some buyers stretch their budget for once-in-a-lifetime opportunities. No two situations are alike, and I customize guidance for every individual.
Final Thought: Your Advocate in the Journey
Your budget should empower, not limit. As your local real estate expert, I’ll help you discover hidden gems, anticipate costs, and negotiate terms that support your long-term goals. Whether you’re starting out, upgrading, or investing, your next home is waiting—and I’m ready to help you find it!
Reach out to begin your budget review and home search today. The future starts with smart planning and personalized support.