How to Save Money When Buying a Home

Buying a home is a very emotional process for many people especially if it is a home that you intend to live in and raise your family in. Even if you’re not looking to live in the home but are buying it as an investment it can still get emotional if it’s your money on the line. Whether you are buying for yourself or for an investment you still want to get the most for your money. As we work closely with you on your next home purchase you may see us stress these points with you again for we feel that these are essential factors to getting the best price possible.

Understanding the market

It is impossible for a market to have a record year, year after year. These are the common trends that we see in all of the large cities that have experienced this kind of growth. There is a very stable market here in the valley and it is expected to stay that way. What does this mean? It means that the playing grounds are just about level when it comes to market value of a home and the negotiation process.

Get pre-approved

The first thing you want to find out is, how much of a home you can afford. To many buyers make the mistake of searching for a home before they even know if they can afford one or not. Get pre-approved! This will save you so much heartache and trouble. Speak with a lender and find out what exactly you can afford. If the interest rates are extremely high (they can change day to day) your payment goes p and your buying cost go down. Be wise and consult with a professional, they are usually great about getting the best available financing plan for your situation. To speak with one of our qualified loan specialist leave us a note.

Know what you want

One of the first things that you need to do is decide what it is that you are looking for in a home. What do you NEED in a home? What is it that you want in a home? It would be a great idea to to make a list of the features that you find necessary in the home you will buy. This is the need list. Then make a list of the features that appeal to you as a luxury. This is your want list. Mark the need list priority 1 and the want list priority 2.

You want your house to functional for your everyday use. It should meet your households’ lifestyle and needs, hence priority 1. Then you take out your want list and start checking off the luxuries. This will be a balancing act. We are not saying that you should focus on getting everything on your need list checked off before you glance at the want list but, don’t let the fancy hand rails and upgraded carpet cause you to overlook the functionality of the house for your needs. For the few out there that will be able to afford their wants and needs this obviously won’t apply as much.

House hunting

Real estate professionals provide services that make the house hunting process as simple and time efficient as possible. Instantly updated databases of all the homes currently on the market it makes it seemingly easy to find what you are looking for and weed out what you not. This service speaks volumes when you consider time is money and we all know money is important when buying a home.

It is important to note that it is not a wise decision to go looking at homes on your own. There is a rule of law amongst REALTORS® called procuring cause. Basically it sates that if we as the buyer’s agent are not the initial cause of the buyer finding the home and taking them to it, that buyer then becomes the client of the seller’s agent or the new home builder. This is, in most cases, when an individual goes to an open house or a new home development. In either case the buyer, most of the time unknowingly, gives up their rights of to be represented by the agent they wish to use.

Making the offer

The fun begins! So you have found the house that you are looking for. Now it is time to make the offer…

Most homes on the market are grossly over true market value with the exception of the few that are just above, right at, or just below market. When we have found you a home that you like the first thing we want to do is find out what category it is in: way above, just above, right at, or below market value. We will assist you in this. With our online database of all the homes currently on the market and those that have sold recently we will be able find how well the price of the home compares. After computing this information we will more accurately be able to assist you in what a reasonable price would be to offer.

Both, you as a homebuyer and your agents, know that it is important that we get the lowest price possible. With this being said, let’s not take that, as lets be greedy. In our experience we have found that when a buyer insults a homeowner with a ridiculously low offer the seller is much more inclined to reject the offer and kill the negotiations instead of countering. We always want to be reasonable in our offer. The comparative analysis that we will do on the home will give us great direction. Unless the home is either grossly overpriced or the home is in need of repair we usually want to make an offer close to the true market value.

Agents make offers on homes frequently. This is a great advantage to you as a client who is looking to buy.

NOTE: Information on this site is not guaranteed to be accurate. Some content is compiled from 3rd party sources. If you are aware of incorrect or outdated information, feel free to contact us.