Tips to save money when buying a home.
Taking some time to do research on potential homes you put offers in to buy will help you save money.
Save money, effort and time when buying a home with careful preparation and planning. Once you have decided on the home you would like to buy, follow the tips below:
Find out if the seller has put any money into the home. You can find out how much the seller bought it for originally and when. Find out if the taxes are paid up and how much the home appraised for. It is important to also check if the home was used for collateral or they’ve taken any additional loans out on the home. This will help you find out what the home is really worth and find out how motivated the seller is, and can help you save money with the next step.
Offering even just a thousand or two less will help save money and keep it in your pocket. If you can afford to not get the house or the market is a bit slow, cut down your initial bid. You can always come back with a higher bid if they decline your offer. But in the chance they accept your lower offer, you will end up being able to save money to use on furnishing the house.
Ask for furnishings already in the home to save money when it comes to buying a couch, refrigerator, etc. Even if the furniture isn’t your taste, it can be sold to help fund a new TV or barbeque. You can also ask for items like cars, boats and golf carts to be included in the selling price. Anything that you can either keep and use or sell to make money will help in the long run.
Hire an inspector to check out your house. We can’t stress how much this will save money for you in the long run. Make sure this is a person working for you who does the inspection. An unstable foundation, electrical wiring costs, fixing pipes and other major items are all things that will end up costing you much more money than you had planned. Either have the seller get these fixed or make your offer lower to compensate for the cost of repairs.
Double check figures before signing loan papers. If you can move in sooner/or later to help you save money, make sure this is an option. By putting 20% down, you will avoid the cost of mortgage insurance allowing you to save money monthly. Also find out if you can decrease your interest rate. Even a small percentage makes a big difference in your payment.
A great way to save money when buying a home is to get the seller to pay the closing costs. This amount can be thousands and having any extra in your pocket will help.
Do you have questions about how you can save money when buying your next home? Call us!