There are lots of ways you can save on your new home and create a better financial future. Here are some tips to help you get started, so you can feel better about your home purchasing decision. These tips will be used to help you negotiate with home sellers, realtors, and home loan officers to save money.
1. Get a Home Inspection Before Making an Offer
Home inspections can cost between $200 and $500 but they are worth it to avoid costly repairs down the road. If the home inspector finds any major problems with the home, you can use this information to renegotiate the purchase price or get the seller to make repairs before you finalize the deal. There are certain parts of the home that are incredibly important to the home’s value such as the roof, foundation, and HVAC system.
According to Bob Vila, a foundation accounts for 10% to 15% of the total cost of building a home. If there are any cracks or settling, this will need to be repaired before you move in. The home inspector will also look for any signs of water damage, which can be expensive to fix. These are just some of the many things that a home inspector will look for when they come to do an inspection.
2. Get Pre-Approved for Your Mortgage Loan
Getting pre-approved for a mortgage loan gives you a clear idea of how much home you can afford and puts you in a stronger negotiating position with home sellers. Once you have a pre-approval letter, the seller will know that you are serious about buying their home and they may be more willing to lower the price.
Unfortunately, one in three Americans has poor credit, which can make it difficult to get pre-approved for a home loan. If you have bad credit, there are still options available to you. You can get a cosigner for your home loan, which will help you to get approved and may even help you to get a lower interest rate.
3. Work with a Buyer’s Agent
When you work with a buyer’s agent, they will help you to find the home of your dreams and also negotiate on your behalf to get the best possible price. In some cases, the seller will pay the buyer’s agent’s commission, so it doesn’t cost you anything to have this professional help. Alternatively, you can work with a real estate agent who specializes in working with buyers to save on your home purchase.
4. Look for a Home That Needs Work
According to the Hook Agency, plumbers have seen an average industry growth of 2.5% over the past five years! One of the reasons might be home buyers looking for a home that needs work.
A home that needs work is often more affordable than a home that is move-in ready. If you are handy, you can do some of the work yourself to save even more money. Of course, you will need to factor in the cost of repairs when you are looking at homes that need work.
5. Buy During the Off-Season
If you are flexible about when you move, you may be able to save money by buying during the off-season. Home prices are often lower in the winter than they are in the spring and summer.
Of course, you will need to factor in the cost of moving when you buy during the off-season. Moving companies are often busiest in the summer, so you may have to pay more for their services. You can also save money on your home purchase by closing at the end of the month. This is because many people want to close at the beginning of the month so they can start their new life in their new home right away.
If you are looking to buy a home, be sure to follow these tips to save money and get the best deal possible. With a little bit of knowledge and effort, you can save money on your new home.