6 Tips for Saving Money on Real Estate

January 22nd, 2018 | Comments Off on 6 Tips for Saving Money on Real Estate |

saving money on real estateReal estate is often one of the biggest investments that you’ll make in your lifetime. But what if you’ve never purchased property before? How can you be sure that you’ve found a good home and gotten a fair deal? Here are just a few tips for saving some cash when you’re in the market for real estate.

1. Know Your Down Payment Options

The standard down payment for buying a house is 20 percent. However, there are mortgage plans that will let you whittle that number down to as little as 3.5 percent. It often comes with higher interest rates and more money spent overall, but if you’re desperate to get out of that one-bedroom apartment, it’s an option for saving money right now.

2. Decide If You’re Renting Or Buying

Are you looking to buy your own slice of real estate, or would you prefer renting one from a place like Invitation Homes? There’s no right or wrong answer here; it all depends on your personal plans and preferences. If you want to make an investment for the future, buy. If you just need a house while you’re waiting for a job transfer, rent.

3. Look for Hidden Costs

Were you aware that waterfront properties often require flood insurance? If you’re planning to live on the coast, you should take a look at FEMA’s flood maps. Houses that are in their “high-risk” areas have seen their insurance rates spike as much as 20 percent in the last year, and they might go even higher in the future. Look for these kinds of unexpected expenses before you close the deal on a new house.

4. Be Frank With Your Realtor

Don’t be embarrassed to tell your real estate agent that you’re on a budget. Not only will this prevent both of you from wasting time with houses and showings that are out of your price range, but it will also allow them to negotiate more effectively. If they get into a bidding war on your behalf, you’ll want them to know exactly how much money they have.

5. Improve Your Credit Score

This is a long-term goal, but if you already know that you won’t be able to move for a year or two, it’s something that you can do to increase your future prospects. Buyers with higher credit scores are offered much better loans and mortgages rates than those with low ones. In fact, buyers with poor credit scores can be turned away entirely unless they’re willing to drop a huge down payment on their dream home. Improve your credit score to improve your prospects.

6. Keep Renovations in Mind

Speaking of dream homes, you’ll probably want to do a bit of customizing after you finalize your real estate purchase, so factor that into your budget. You don’t want to wind up thousands of dollars in debt because you just couldn’t stand the plumbing in your new bathroom. Ask these questions and make these plans while you’re still in the budgeting and bargaining stage of house-hunting.

These are just a few ways to save money on real estate. Whether you’re browsing the catalogues of the Invitation Homes company or something else entirely, use these tips and tricks to have cash left over when you’re done.

David Allred is the author and creator of CFW. David has been teaching entrepreneur minded people how to earn a full time income working from the comfort of home for nearly a decade.

Think about it. Never miss your kids’ events, set your own schedule, choose your own income and enjoy a lifestyle and income which most people only drool over!

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