Buying a home is one of the most expensive purchases you will ever make. If you’re like most people shopping for a home, you’re probably trying to match a home that fits your needs perfectly, with the lowest possible price.
A guide to saving thousands of dollars when buying a home
There are a few simple guidelines and insights that have the potential to save thousands of dollars. Here are some of the most important points to helping my buyers save money and still
Determine your needs vs. your desires
This seems like a simple point, but many people make the mistake of confusing what they need with what they desire. Obviously the goal of shopping around is to find a property that fulfills both, but it’s important to know that in the real world of buying real estate, this situation doesn’t always occur.
When the purchase price of an item exceeds $10,000, people commonly let emotion and desire play a big role in their decision-making processes. When you’re looking at home you’ll find that you’re drawn to certain properties for completely different reasons; some based on needs, and other based on desires. Is it better to buy the house with the basement suite for rental possibilities or the one with more bedrooms to better accommodate a growing family? Many people make the wrong decision at this step and end up regretting their purchase for years.
It’s vital that you satisfy your needs first and your desires second. In your first meeting and consultation with me, we will go through both lists in a unique way that I have found extremely helpful to many buyers. I call it the “ABCD” list, and it will help us to narrow in on exactly what is most important to you in a home.
Shopping with powerful help
Once we create your “ABCD” list, I will build a customized buyer profile to get you all MLS® System listings that meet your exact requirements. I have found that using one of these systems can greatly increase your chances of finding the perfect home at the right price as you will be made aware of all existing listings that meet your requirements. More importantly, you will be automatically notified as soon as new listings that meet your requirements hit the market.
Seeing beyond old carpet, “unique” paint colors and outdated appliances
One of my FAVORITE things about working with buyers is helping you see BEYOND the things that need updating and repair to the vision of what could be. More importantly, I have the experience and knowledge to give you an estimated dollar amount that would be needed to make those changes. My husband and I are, by nature, fixer-uppers and d0-ers. We love everything about home repair and updating…and we do everything ourselves. If you want to know how to make something look phenomenal for cheap, you have met the right REALTOR®.
I bring this love of all things about making a house into a home to the buying process…to help you save money. Many buyers will pass by a house with enormous potential because they cannot see the vision or understand that a lot of these updates and repairs come at a minimal cost. That is their loss…and our gain! If you are up for a little elbow grease, you can save thousands of dollars when purchasing your home…and end up with a personalized, customized finished product that will make you proud.
Mortgage options that save
During the process of purchasing your home, I will do my very best to educate you on the mortgage options out in the market…especially things that are not loudly promoted or advertised. For example, did you know that making a split or half mortgage payment twice per month instead of once per month can save you tens of thousands of dollars and pay off your mortgage up to 5 years sooner?! Think about it…you will pay the exact same amount each month, but split the payment. For example, if your total mortgage payment is $1,600, you would pay $800 on the 1st of the month and $800 on the 15th of the month. Auto-withdrawal payments through most lenders make this easy and convenient. Secondly, if you can afford it, a 15-year mortgage is the best option, helping you quickly gain greater equity in your home and ultimately pay off your mortgage sooner. With interest rates so historically low, the difference in monthly payment amount between a 15-year mortgage and a 30-year mortgage is typically not as large as you would think. I would love to walk you through my complete list of tips and tricks to save the most money in your financing and home mortgage.
Understand how sellers set their asking price
As I have mentioned before, I have the heart of a teacher. I think it is important for sellers to understand how buyers look for homes and make decisions, and on the other hand, I think it is equally important for buyers to be knowledgable about how sellers set their asking price. This does not mean that I will ever divulge confidential information about a seller’s reason or motivation for moving, but rather inform my buyer about the fundamentals of how prices are set. Keep in mind that roughly 75% of all homes on the market are priced 5-10% above fair market value. Once we find a house that you love, I will provide you with detailed reports and information–including how long the house has been on the market, a market analysis to see what other comparable homes are selling for, and a detailed list of prospective repairs and update costs–which will all aid in negotiating the best price for you.