We all want to get the best value for our dollar, and since we are looking to buy a house, it’s always best to save up as much money as we possibly can. Indeed, because of the high value of real estate properties, there are a lot of areas where we can save during the home buying process.
Below are some of the smart ways you can keep your dollars in your pocket book when looking to buy a house.
Take Advantage of a Mortgage Calculator
You’ve probably already heard of a mortgage calculator, but do you know the benefits they offer? First of all, they can help you get an idea of just how much you can afford to spend on a house. This seems like the obvious function, but there is more. Because you can change different values like the mortgage term and interest rate, you can quickly calculate just how much you’ll be saving if you decide to take on a lower interest rate or a shorter term. And when you have the mortgage, you can also experiment with advance payments and check your savings using the calculator.
Mortgage calculators allow you to get the information you need with just a few clicks. This knowledge can help you make smarter decisions because you can really see the amount of savings that you stand to gain rather than just imagining it in your head.
Yes, you’ve probably hear this a thousand times before, but there really is great value to be found in buying foreclosed homes.
According to ABC news, foreclosed homes are 28% cheaper than other resales. If you don’t feel comfortable buying a foreclosure in an auction, you can opt to scout around for those which have been bought back by the bank. This process is generally easier and sometimes the selling bank can also offer you a mortgage.
Skip the Agent
Broker’s fees are usually paid by the seller, but by skipping the real estate broker, you can have more leverage in negotiations. Since you are the direct buyer, it is a given that the homeowner has already saved an average of 6% in brokers fees. If you can get the homeowner to waive the 6% in his selling price as your discount, then you will have immediately saved a lot.
Just bear in mind however that it can be more difficult to find a house you really want without getting an agent to help. You have to be more diligent with your research, and never underestimate the power of your network. Try to ask your friends and relatives if they have friends or co workers who are selling their home. You never know when or where you’ll find a lead.
Bring Out the Negotiator In You
Ever watched the reality TV show “The Apprentice”? If you’re a fan of the series then you may have already picked up on some valuable negotiation tips.
Don’t be shy to ask for a discount, and if the owner doesn’t give you a price reduction right away, don’t lose hope. Work with the seller and ask him what arrangement works best for the both of you. You can try offering a higher down payment in exchange for a lower total cost.
Save on the Small Details
Most of us are concerned about the total contract price, and rightly so. However, if you can’t find any more ways to tweak the selling price, then don’t forget that you can still save on the small details. This includes checking the condition of the home for potential repairs. If there is a leaky pipe or a broker door knob, then ask the seller to have it fixed first. Or if it’s a big repair, request for a discount so as to cover your potential expenses.
These are only some of the ways you can save on buying your dream home. If you want to get the best deal, you can also choose to befriend top brokers and agents who know which properties are selling cheaper than the market price.
No matter what you do, do not rush into buying a property and always take the time to inspect.
What other ways can you think of to save money when looking to buy a house? If you have bought a home what are some of the ways that you saved money during the process?