You Need These Home Buying Tips To Avoid Losing Thousands of Dollars
Follow these tips for buying a house and you could save thousands of dollars on your purchase.
The last thing I want to see is someone’s money go down the drain, but, all too often, I hear about home buyers who have lost thousands because of a lack of good advice. The Faris Team’s clients always benefit from our money-saving tips when buying or selling a home, here are the top five home buying tips from our team:
1. Get a second mortgage quote
Time and time again I witness buyers who go with the first mortgage option that’s presented to them, without any investigation into other options. Mortgage brokers are a great resource for buyers because their job is to shop multiple banks in search of the right mortgage for you. There are times when your existing bank can still beat the rate a mortgage broker presents, so consult multiple sources before you lock into an agreement. Don’t forget to compare the terms of the mortgage; eager buyers sometimes get stuck with mortgage agreements that charge a large penalty if broken.
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2. Opt-out of your bank’s life insurance policy
Buyers can often secure a life insurance policy that offers more coverage for less money if they work with a financial advisor or insurance broker. As with shopping for a mortgage rate, don’t subscribe to the first insurance package presented to you.
3. Do a home inspection
Conducting a home inspection of the property you’d like to buy is essential. A qualified inspector can point out any major repairs you’ll need to factor into your budget, and can often foresee other challenges down the road. With a detailed inspection, you can decide if the work a home needs outweigh your desire to buy it, potentially saving you thousands in unwanted repairs.
Conducting a pre-home inspection is also a way to strengthen your offer if you’re in competition with other buyers. Spending a few hundred dollars up front means you no longer need to include a home inspection as a condition of your offer, and in the eyes of the seller, the fewer conditions, the better.
4. Get a Comparative Market Analysis (CMA)
A professional CMA will ensure that you do not overpay for a property. When you’re empowered with recent sale prices of homes similar to the one you’d like to buy, you’re better equipped to make a confident and fair offer. There’s nothing worse than taking a loss on your home when you go to sell because you overpaid.
5. Ask to split the difference
Even when a seller states they won’t budge any further, there is often still room to negotiate. Asking to split the difference is a strategy I’ve seen succeed many times. Meeting in the middle brings swift resolution to most matters, and saves buyers money on their bottom line.
Your Realtor® should be a wealth of information on strategies to help you achieve your real estate goals and save you money along the way. Do you have questions about these and other home buying tips? Are you considering buying a home? Let’s talk.
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