Super Ways to Save on Your Shiny New Home
Buying a home is one of the most expensive things you will ever do. Of course, there’s paying the mortgage, which is likely to take you many years. On top of that, there’s also the initial cost of purchasing your home. It includes a down payment, mortgage fees, and the cost of physically moving home. You can end up spending a lot of money, leaving you trying to be frugal for a long time after you move in. However, there are some smart ways you can save some cash if you want to reduce the impact of buying a new home. Try these tips to lower your spend.
Negotiate Everything
Not everyone is a natural haggler, but the ability to negotiate when you’re buying a home will definitely come in handy. Being able to negotiate prices for just about everything means you can lower the costs of some big expenses. One of the most important things to negotiate on is the cost of the property itself. Most sellers will be open to offers, although they usually have a minimum offer they’re willing to accept. You can negotiate on other costs too, including closing fees. You might be able to get your lender to help cover these, and perhaps even pay for them all.
Put Realtors in Competition
Choosing your realtor isn’t always easy. You often have a huge choice, and you might be hesitant about choosing just one. If you’re hoping to save some money, one option is to look for discount realtors who might be willing to share their commission with you. Some services will allow realtors to bid for your business, offering a certain percentage of their commission. So when you buy a property with them, you get a little cash bonus. Buying a short sale or a foreclosure property with these realtors helps you save even more.
Choose Your Mortgage Carefully
You could be paying your mortgage for the next twenty years or more. So choosing your lender and your mortgage carefully is extremely important. You need to make sure you shop around and take a proper look at your options. Some people might choose to use a mortgage broker to get a better deal. One thing to consider is the length of the loan. While many first-time buyers pick a longer mortgage term, you could pay less overall by paying it off faster.
Get the Best Value for Your Money
When you’re looking for the right home, it’s a good idea to have an open mind about what sort of property you want. If you can be flexible about location, size, and nearby amenities, you could get a lot more for your money. Some parts of town could be a lot cheaper, and perhaps leave you with some cash to spend on renovating the property. A gated community with a whole host of amenities is probably going to cost you more than a home that just happens to be close to some convenient facilities and recreational areas.
Buying a home might be expensive, but it doesn’t mean you can’t save money. If you know some smart methods, you can avoid spending more than you need.