Buying a new home is a big decision, a big change, and like most things that fall under those two categories, people want to do it “right”. When it comes to real estate, that usually means you’ve purchased a home and saved as much money as possible in the process. Or – in other words – got a “good deal”. You can’t undo a signature when you close a deal on a new home, so the pressure is on a little bit during the preparation and process leading up to that moment. No matter where you stand financially, however, the truth is nobody wants to feel ripped off – and you don’t have to. Below are ways to make sure you close a deal on a house, save as much money as possible, and feel like you did everything right.
Prepare Yourself Factually and Financially
As the buyer, it is truly on you more than anyone else to find out as much as you can about the locations you are interested in, and a lot of the information you acquire needs to answer the questions that are most in line with your values. There are the basics, of course – find out about schools, crime level, points of interest, zoning information, and transportation, for instance – but also, really “dig in” to how the property fits in with your finances and assets at this time. Identify and clear up debts as is needed and get pre-approved for financing if that is what you need – prior to searching for your dream home.
If you are going the route of having your purchase financed with a mortgage lender, you need to make sure you are fully approved for financing – not just pre-qualified, but fully approved – before you begin to make offers on any home. If you can help it, don’t just go to one bank and accept whatever is available there (which, a lot of times, may seem clear at first blush, but what banks they say they could offer and what they actually offer may be vastly different). Do a little bank shopping instead and make an informed decision.
To make yourself more appealing to lenders, it’s very similar to asking for a loan in any case – banks want to see that you have income, your credit is solid, you can afford a down payment, and that they can trust you despite any outstanding debt you have when approaching them. Addressing your debt profile as a priority upfront will make all of the pieces fall into place much more easily, quickly, and in your favor.
Base Your Offer on Analysis – Not the Seller’s Asking Price
When you are purchasing a home, you aren’t only purchasing the home but also the location. That being said, it’s important to have information about the location as mentioned above, but also what exactly is going on in the real estate market in that location. For instance, if you are trying to buy a home in Miami, undergo comparative market analysis for similar homes in Miami so that you are fully equipped to make an offer that is entirely appropriate for the area – which may not be the seller’s asking price. Your buyers’ agent can run a comparative market analysis for you and give you the necessary information. That being said, if you are on a budget and really want to save money buying a home, consider using beycome – for a minimal flat fee, you can have many features including comparative market analysis done for you, and when you close on a house, you can pocket the commission on the sale (that would normally go to an agent).
Have The Home Inspected – And Expect The Unexpected
So you’ve addressed your finances, been approved for financing, ventured out into the world of real estate to find your new home that fits into your budget – next thing, make sure the home has a full home inspection prior to closing. This sort of goes without saying, as any mess-ups in a home that you know about will add to your negotiation power and take a little bit of that power from the seller.
That being said, even with the most thorough home inspection, there is for sure a known magic in the combination of a new home and a new inhabitant or inhabitants – and for whatever reason – upon moving in, something always breaks. Budget this into your savings, however much you can – know you did the best you possibly could by getting the inspection, but stay prepared and just take it as a rite of passage.