How to Save Money Buying or Selling
When it comes to buying or selling a home, it's often a huge expense and for for most of us, saving money is a top priority.
The first step in saving money during this process is to find a great realtor, that will work to get you the best deal possible, but I digress.
To keep things simple, I am going to break this article down into two segments:
1. Saving money while buying
2. Saving & making more money while selling
How To Save Money When You Buy A Home
Work on your credit prior to applying for a loan.
You can get approved for a mortgage with a credit score of 580, but if you can get your score to at least 670, you can often expect a better rate.
Find out if you qualify for first time buyer programs with your lender. These programs will give you money towards your down payment and closing costs.
There are a lot of great programs out there for first time buyers that can assist you with your down payment and closing costs.
Utilize zero down loan products like USDA & VA.
These loan products offer a 0% down payment option. You will still need to pay closing costs but that will not include any down payment.
Buy during the slow seasons of your market.
Buying during particular times and seasons can give you an advantage when sellers may be more willing to take a price reduction or offer concessions.
Negotiate closing costs into your contract.
If the seller agrees, you could have a portion of your down payment/closing costs paid by the seller at closing. Depending on what loan type you use, there will be different limits to this amount.
Shop around for your mortgage to find the best rate and mortgage processing fees.
When you apply for a mortgage, you typically have a two week window to shop around for the best rate with it only affecting your credit once. Every company charges different amounts for loan processing, so it is good to check on this as well.
Be open to homes that may need cosmetic renovations.
Generally, homes that need improvements tend to sit on the market longer. If you find a home that needs minor improvements or renovations, they may be more open to price reductions or paying closing costs.
Bundle your inspections.
Most inspectors offer discounts when you bundle multiple inspections.
How To Save & Make More Money When Selling A Home
Fix things that could come up in the inspection report.
This may seem counterproductive, but it could save you money in the long run if these issues come up on the inspection report.
Make cost-effective upgrades.
Talk to your agent about what upgrades could provide you the highest return on investment and net you the most money out of your home sale.
Sell during peak times in your market.
Selling during the peak times in the market could result in multiple offers and net you the most money.
Negotiate the commission.
All Realtor® commissions are negotiable.
Sell As-Is.
Selling as is could save you money on repairs. (Keep in mind, this can cause you to take a hit on your selling price.)
Negotiate closing costs into the contract.
If your home is highly sought after, you could potentially secure a contract that is over asking and apply the difference to your closing costs.
Price your home at fair market value to encourage the most offers.
Pricing your home at fair market value will get the most eyes on it immediately and could produce multiple offers that sometimes go over asking price.
The best way to save and make most money is to discuss your situation with your agent so you can work together to create a plan to move forward. If you are thinking about a move, whether that is today or a year from now, it’s best practice to find an agent sooner than later so that you can plan together accordingly.