If you spend your spare time clipping coupons or searching for the best price for a product, it may pain you to think about paying full price for a house. However, there are a few ways you can save big, other than submitting a lowball offer.
“Price Reduced” Properties
Homes that have been lingering on the market for a while may start lowering their asking price. This tells you, the buyer, that they are willing to negotiate and you may be able to get the house for lower than their asking price. By teaming up with an S&D Real Estate Agent, you can be the first to know about price reductions in your preferred area. You can also check websites like Realtor.com to search for price reductions.
Sweeten the Deal
If you want to get a better price, try to better understand the seller. If they just recently got relocated for their job and need to move asap, you can offer to move up the closing date. On the other end of the spectrum, if they need to stay for a few more weeks because their new home hasn’t closed yet, in exchange for a price reduction, you can allow them to stay. You never know what will make the sellers jump on a lower offer so it is always a good idea to ask your Realtor to talk with the seller and find out what their situation is like.
Look for Potential
We all want the dream kitchen and open concept that HGTV showcases on all their shows. However, if you are a bargain hunter, you have better chances of getting a great deal on a home that needs some work. So, look for a house that scares away other buyers but, really, only needs cosmetic work. You would be amazed how different a space can be with just a few minor changes. For a relatively modest investment, you can repaint the walls and wooden cabinets, update the lighting and fixtures, replace the faucets, and redo the flooring. Plus, you don’t have to do it all at once. Working on one small project at a time will help save your bank account from the initial shock.
20% Down Payment
If you have the means to make a 20% down payment, do it! This is will save you a few hundred dollars a month because you won’t have to pay mortgage insurance. This will help keep your monthly payments down and save you money over the long run.
Shop Around for Mortgages
About 3-6 months before you really start looking for a place to call home, shop around for mortgages. You can compare rates and if you need to, spend time raising your credit score to get a better rate. A FICO score of 760 or above will allow you to access the best interest rates available. This will, in turn, save you, even more, money over the lifetime of your loan.
