Buying a property is one of the most expensive purchases you’ll ever have to make, so you want to take all the right steps. In the home buying process, even small mistakes can be costly, so being fully prepared can make all the difference.
Here are several helpful tips that can help you save on your home purchase:
Buy a home at the end of the year
November and December are usually slow months for the real estate market. Not only are most buyers preoccupied with holiday festivities, but in colder climates, the weather isn’t really that ideal for house hunting.
This puts you in a prime spot if you’re willing to buy a home during the holidays. During this time, sellers are more likely to offer better deals and incentives. If you’re not in a hurry to buy a home, waiting until November or December may prove to be a wise decision.
Know exactly what you want
If you’re buying a newly built home, it means you’ll have to make a lot of decisions regarding different details. Do you want a fireplace in the master bedroom? An outdoor patio? Is it better to have carpet or wood floors? Will the house be energy efficient?
These are just some of the questions you’ll need to ask yourself. Building a new home often takes several months, so if ever you change your mind about a certain detail, it may cost you thousands of dollars.
Consider buying a fixer-upper
Are you willing to put in some work? Then consider looking for a fixer-upper. In case its owner isn’t interested in going through all the trouble of repairing and renovating, you may be in a great position to negotiate a significantly lower price.
Look for a bank-owned home
If you don’t mind overlooking roof damage, incomplete fixtures, or unsightly fixtures, you may want to consider purchasing a bank-owned home. Also known as foreclosed homes, these homes are properties that have been turned over to banks due to their previous owner’s lack of resources required to pay for the property. Be warned though – most foreclosed homes are neglected, which means you may need to spend for repairs and updates. But it might be worth it, considering some of these properties are sold for half their original price.
Look for homes sold directly by the owner
When viewing listings, be on the lookout for homes sold directly by the homeowner. Dealing with the homeowner directly means you don’t have to work with a selling agent. This can lead to a better deal, since the seller does not have to pay an agent’s commission fee, allowing you to negotiate for a lower price.
Search for relisted properties
Look for a home that has remained available for quite some time in the market, as there’s a good chance the seller will offer a low price for it. When looking at MLS listings, take note of the property’s “continuous days on market,” or CDOM. This value indicates the amount of days since the property was originally listed. Once you find a relisted house, contact the seller, and try to negotiate a deal.
Want to get started on this money-saving approach to buying a home? Call me at (760) 622 5087 or e-mail me here.