Dorothy Robinson is a personal finance blogger and also a first-time homeowner. Before settling down in the suburbs of New York she experienced the true nature of how difficult buying a home can really be. When push came to shove and she began searching for reasonable mortgage rates, she realized that “fluctuating mortgage rates” are just three words that entice you to just settle with that current rate. At one point she found herself on the phone with three different brokers at the same time comparing each rate being offered. She would get a quote from one, see if the other could match, and propose a counteroffer. As it turns out, mortgage brokers can almost always somehow find a “better” deal. If you are like Dorothy, then here are some other strategies that you can use to find a great deal on a home.
Focus on the Necessities
When you begin to envision the house of your dreams, you might immediately become consumed by interior design. Meaning, that with the thought of your home slowly becoming a reality, you might envision all of the trivial additions rather than what you actually need to live comfortably. While house shopping, compare the prices of a house with three bedrooms to two bedrooms, or even one. Then, determine whether or not you actually are going to need the extra room. You can end up saving over $100,000 just by purchasing a house that has one less room.
Also, ask yourself whether or not you are willing to repair your new home back into tip-top shape. If it has significant damage, you’ll most likely have to hire a contractor to take care of it for you. And with damages being hidden at times, you could end up with more than you bargained for.
The price that is set on a home is usually what the owner believes its’ value is. While you can slightly haggle, it’s important that you don’t send a lowball offer to a house that you’re extremely interested in. They might take you as a joke with your initial offer and counter with something higher, or they might not even accept your offer at all. Find neutral ground where you can comfortably lower the price that shows that you’re willing to reason in good standing. You’ve heard the success stories where people have found their dream houses at a steal. It can happen and with the proper approach to the home buying process, it can happen to you too.
Kuba Jewgieniew is the CEO of Realty ONE Group, a full-service residential real-estate brokerage firm with 7,500+ associates, headquartered in Irvine, California.