Are You A 
Savvy Homebuyer?

4 Tips On How To Save Money!

Let's be honest...  It costs a lot of money just to be alive in our modern day busy lives, never mind trying to also purchase a home.  

This will be one of the biggest decisions and largest investments you will make in your life, and you need to know every way you can save money.  

Here are some great ways to do just that!  

1.  Market Age:  "Market Age" is a term we realtors use to describe those listings that have been on the market for a while.  The one that just won't sell because the sellers will not budge on their price (or for any other reason), and now many buyers think something is wrong with that home.  Well, what if there is nothing wrong with the home and it is simply overpriced?  The ball is in now your court!  Even in a "seller's market" this still happens, and it is a great way you can gain leverage if you like the home.  

Advice:  Ask your Real Estate agent to run comparables for you to let you know what the "true" value is.

2.  Foreclosures:  I hesitate to offer advice on purchasing a foreclosure, because as the saying goes, "It is not for the faint of heart."  However, if you are willing to put in the work, sometimes you can find a great deal. When I say "work," I do not just mean physical labor.  Work also requires you to do research, and to hire a team of people who are going to be by your side.  Your realtor, your appraiser, your attorney (make sure the person is a real estate attorney), and a contractor who can give you a quote on labor and material costs.  

Advice:  Be sure your Real Estate agent has foreclosure experience, and be sure to research the foreclosure process locally.  Some states are "Strict Foreclosure" states, and some are "Judgment States."  

3.  Closing Costs:  Now this is my favorite one to discuss, because this is one of those costs that is loaded with complexity, and it confuses many people.  I could write an entire blog entry on what closing costs consist of, but I will save that one for later.  Closing costs can run anywhere between $5,000 - $10,000, or more! Wow!  That is a lot of money, and outside of your down payment, this is probably the one that will hurt the most!  But it doesn't have to be so painful!  Did you know that you can ask the seller to pay your closing costs for you?  Yes, that's right!  Every single last penny paid by the seller.  Ah, relief...  

Advice:  Hire an experienced agent who is excellent at negotiating, and who can persuade the listing agent why this is a great idea (It happens all of the time).  

4.  Home Inspections:  This is a great time to ask for things you want fixed.  You're already paying a significant amount of money, and you should feel relaxed and at ease after you close.  For example, you may find that the house has an aged roof that you would like replaced, and you just learned that it is going to cost $10,000.  Do you really want that hanging over your head?  No?  Well, this would be a perfect time to ask the seller to fix the roof.  Sometimes this works, sometimes the two parties end up splitting the cost. There are many ways you can negotiate repair items (be sure you hire an agent who knows how to do this well). 

Advice:  Have repairs priced out by two different professionals so you have evidence you can provide the seller when making your repair requests.  

Here's to spending less and gaining more!