5 Steps That Will Save You Thousands When Buying a Home
Buying a home is one of the most expensive purchases you’ll ever make, but there are some very simple tips that can help you save thousands of dollars while doing it.
These five strategies could help you to save thousands of dollars and create a smoother home buying experience:
- Get a second quote when obtaining a mortgage
- Opt out of your bank’s life insurance policy
- Do a home inspection
- Get a comparative market analysis
- When in negotiations to purchase, split the difference
1) Get a second quote when obtaining a mortgage
Mortgage brokers are a great resource to buyers because their job is to shop multiple banks to find the right mortgage plan for you. Remember to look for other options as well, rather than just selecting the first one that is presented to you. It is also important to compare the terms and conditions of the mortgage and consult multiple sources before you lock into an agreement – there could be a penalty if the mortgage is broken before your term is up. Download the #1 Canadian Mortgage app if you feel like shopping around for great rates before connecting with a mortgage professional.
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. When shopping for a good policy, don’t settle for the first insurance package presented to you.
3) Get a home inspection
Planning a home inspection on the property that you are planning on purchasing 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 needed on the home outweighs your desire to buy it, or whether your Realtor® can factor it into negotiations, saving you thousands in unwanted repairs. Conducting a pre-home inspection can really strengthen your offer, as you will no longer need to include a home inspection as a condition.
4) Have your Realtor® create a CMA (Comparative Market Analysis) on the property you are purchasing
A professional CMA will ensure you do not overpay for your property. When you are equipped with the recent sale prices of homes similar to the one you are planning on purchasing, you are empowered to make a confident and fair offer.
5) Ask to split the difference
There is often room to negotiate in an offer, and splitting the difference on a needed repair or adjustment can be an effective way to save the buyer money. Meeting in the middle brings a quick resolution to most challenges.
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