5 Money Saving Tips when Buying a House – Guest Post
Buying a house can be a fun but challenging and time-consuming task. There will be a lot of time spent in sight-seeing and visiting different prospect locations before landing to the perfect and ideal site. This process entails financial resources. Thus, it is something that you must take great precaution in. This article gives you five helpful tips on how you can save money when considering buying a house.
1. Avoid the Sales Agent
One of the major real estate agent disadvantages is that they are the extra middle man in a real estate deal. Real-estate companies give commissions to their Sales Agents and this cost can be passed on to you. As nice as they may be and as informative as they may seem, their duty is to see that the seller gets the best deal possible with their add-on percentage. So as much as possible, go directly to the owner of the house you want to purchase.
It’s best to buy your empire from someone you know—and in cash—so that you can have a higher chance of availing discount. Then you can save as much as $5000 to $7000.
2. Location Research
Go house shopping but as a first step, figure out what kind of home you might like and which amenities are most important for you. Secondly, estimate your price range and look at houses which match to your budget. This is to prevent yourself from falling in love with a home that is too expensive, which you will later regret.
You may visit the neighborhood several times to know how the surrounding environment can be in the morning or in the evening, to know how good or bad it will be to live there and to verify about the security concerns. If you feel that it has bad points but somehow can be overcome, highlight those points to the seller. Use them as your power to haggle. Compare and contrast payment terms. Think twice and take the best deal.
The rule is: the larger the lot of the house you buy, the lesser the cost. For example, a 300 square meter house and lot will cost $200 per square meter versus that of a 700 square meter house and lot which will only cost $180 per square meter. In addition, the trick here is that the larger area you buy, the more negotiating power you’ll have.
3. Bulk Buying
If you’re not rushing to reach a sale, research for the resale value of the houses in the perimeter after 5-20 years from the current year. You can make it as your real estate investment.
4. Foreclosed Properties
Check out foreclosed properties on your desired location. These properties cost relatively lower but are usually for bidding. Do your homework. Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5% less than the asking price, you should make a bid that’s about eight to 10% lower than what the seller is asking.
5. Going Green
US government implemented tax breaks for those households who chose to go green. Go for a house with Green Innovations Installed. This will lessen the cost of your monthly/yearly tax payments.
Buying a house can be costly but with extended effort you can trim down your expenses. Study the local laws and aim for the houses that you can afford. Then sign the agreement paper according to local rules and regulations. Terms and conditions of the agreement vary from state to state depending on local custom. Keep the original documents with you. Read the documents carefully; get clear all your doubts. Pay in advance (and better in cash), and the remaining amount as per your signed agreement. Don’t pay full amount until you get satisfied. Buy only what you can.
Jessica Francisco is a cheerful 25-year-old with an odd sense of fun. The least of her broad range of hobbies include swimming, hiking and listening to the music of Michael Jackson. Jessica is also one of the editors of Luke Roxas.