Guest Post by: Joaquin Miranda with Homelight
It’s certainly not easy to find a great home for a good price these days, and many people are competing for the inventory that is available. However, when you are willing to be a savvy shopper, there are ways to get what you want for less as long as you’re willing to look at both the big picture and the details. It comes down to having a long-term mindset, a willingness to wait a bit, and a knowledgeable agent by your side.
Find Bargains When and Where Others Don’t Want to Look
If you shop in the highest demand neighborhood, for the nicest, newest, largest house, right when everyone else is shopping, it’s no surprise that you’re likely to find yourself in a bidding war. However, as a household you benefit when you choose to do one or more of the following, based on your priorities:
- Buy in the off-season, as much as possible, when there are fewer homes going on the market but there are also fewer buyers interested.
- Buy in up-and-coming neighborhoods rather than the already-en-vogue places.
- Buy a smaller home or a joined home, like a condominium or townhouse.
- Buy an older home or a home that needs some renovations that can be done over time.
Not every family is interested in every one of these bargain-finding opportunities, but if you are willing to concede one or more of these, you’ll see savings.
Optimize Your Loan’s Stats
Another area of saving is where you make sure your loan costs as little as possible. This involves working on your credit history/score all the time to qualify for the best possible rate, aiming for a 20% down payment to avoid the costs of PMI, and shopping multiple lenders to make sure you are getting the best interest rate and closing cost estimate that you can find. Not all of these are possible in every home purchase, but they are good aspirational goals, especially if you still have some time to save and improve credit.
For closing costs, you can sometimes find a deal on title services if you shop for quotes, and you might be able to bundle your home inspections if the home inspector is willing to offer a discount for multiple inspections at once.
Get a High-Performing Buyer’s Agent Who’ll Help You Save
A great buyer’s agent is there to understand when you have the leverage to really negotiate a home price, but they also are versatile. They can help if you know you are in a bidding war and try to only just barely out-bid the other party. Buyer’s agents also are going to try to get you to see homes quickly that are likely to fit your needs but also might otherwise be snapped up before you can decide. They also are strong negotiators on things like concessions related to repair needs, perhaps ones that show up on an inspection but which weren’t previously known.
Overall, you can’t transcend a difficult housing market, but you can be wise and save here and there to know that you’re locking in a strong mortgage on a high-value home that is right for your household.
