Thursday 30 May 2019

5 Money Saving Tips When Buying A House

House shopping can be an exciting time for families, but also an incredibly expensive and time consuming one. If you're selling your home, it could take upwards of 6 to 12 months in some markets just to sell your old house. While the cost of buying a home might be more reasonable than renting in the long-term, it's still likely to be one of the most expensive purchases you make in your life. Use these tips to help make the right choice of home for you and your family, and to save a bit of money in the process.

Talk To Your Agent

The first and potentially most obvious way to save on your home is to work with your real estate agent closely. Your realtor is an expert in the housing market; that's why people hire them to navigate real estate. 78% of recent buyers found their real estate agent to be a very useful information source, especially when looking for a good deal on their home. Find a real estate agent you can trust and work closely with them to find the best properties for a more affordable price.

Look For Repairs

While this might seem counter-intuitive, looking for repairs in your future home might end up being a way to save. Depending on the extent of the repairs needed and the price of the home, you may be able to talk the overall price down. Better yet, you might be able to have the seller tackle some of the simpler repairs for you, like the water heater, for example. A standard water heater only lasts 10 to 15 years before corrosion attacks the tank walls.

Second Homes And Vacation Homes

If this isn't your first home purchase, consider whether you really want to own this property or if you'd be better off renting. 42% of vacation home buyers plan on using their property for vacations or as a family retreat. Depending on the circumstances, you might save money by choosing to rent.

Plan For The Future

While your home might suit your needs today, what about five years from now, or ten? When you're buying a home you're investing for the future and your future living needs. Consider where you might be several years into the future when you're looking for your home to make sure your home will fit your needs then as well as now. This is especially important when you're considering the size of your future home.

Save For A Larger Down Payment

While there are a few programs in place that allow you to put down a smaller initial payment on your house, it's best to take some time to save up for the full 20%. You'll reduce how much you ultimately end up paying due to reduced interest payments, private mortgage insurance, and other hidden fees. It might take a bit more time to save, but it will be worth the wait for sure.

While buying a home will still be expensive, there are a few ways you can reduce the financial strain it will put on you and your family. That way, you'll be able to settle into your new home without worrying too much about the associated costs.

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