5 Insider Methods to Saving Money on Your Dream Home Purchase
August 26, 2013 No Comments
Buying your dream home requires a substantial investment and is probably the single biggest, most important decision that you’ll make in your lifetime. Because of that, it also requires the most due diligence, time, and effort to make sure you get what you pay for.
There are a few nifty and highly valuable secrets to buying your dream home at a price that won’t necessarily leave you up to your ears in debt. These tips are what the real estate agents, brokers, and other industry experts suggest you keep in mind in order to make your dream home more affordable.
1. Decide on what you really need
You need to consider what you actually need in your dream house, as opposed to all the things that you just want. Knowing the difference between the two will save you time and money. Of course, it wouldn’t be a dream home without a few of those “wants”, but keep it reasonable. You should start by hammering out a list of wants and needs. How many bedrooms do you need? Do you need a separate kitchen, or perhaps a three-car garage? Will you entertain enough times to justify a decked-out gaming room or is it just a future dust museum?
By constructing a thorough list of wants and needs before you get into this venture, you’ll have a better head on your shoulders when deciding on homes. Also keep in mind that if you can’t really afford something right now, there’s always 5 or 10 years down the road. For example, instead of getting an in-ground pool off the bat, just make sure you purchase a home with a large enough backyard so that you can add it in the future. This will let you get into your home with less debt and stress, and still allow you to save for fun additions in the future.
Also keep in mind that families tend to grow. That’s why it’s also important to have future plans in place. Maybe you’re not sure if you’re going to have more kids, but it never hurts to have a little extra space available since it’s a possibility.
2. Get pre-approved on your loan
Getting pre-approved is a great way to show sellers and real estate agents that not only are you a serious buyer, but you already have the funds for it and are ready to make a serious offer on the right place. Not only that, a pre-approval makes you instantly aware of how much money you can realistically borrow for your dream home.
Take note, however, that being pre-qualified for a loan is different from getting pre-approved. Before starting your home-shopping adventure, it’s always best to get pre-approved, as most agents and sellers won’t even give you the time of day if they don’t think you’re serious, especially in the current market, where homes are selling faster than they have in 5 years.
3. Narrow down your search
Now that you know your budget and have a clear vision of your wants and needs, it’s time to actually begin searching for the properties that lie within your reach. The good news is that thanks to the internet, you can simply log on to pretty much any local real estate company’s website and search for houses online. For example, if you’re interested in the best houses in Southern California, you might check here: http://www.taylormorrison.com/15-new-homes-US-CA-Southern-California-Division.aspx
This listing will also help save you time as it lists details all in one page, thus allowing you to dial in on the perfect list of homes for you to choose from.
4. Know the neighborhood
It always makes good sense to do your own research on the neighborhood where your potential new dream house sits. This gives you a good idea whether you’ll have all the amenities you need – schools, hospitals, commercial centers, etc. – nearby. Furthermore, it will give you a heads up on what a comparable house in your future neighborhood costs. You can save a lot if you’re willing to skip the high-end neighborhoods and are willing to venture out a bit. There are usually lots of good neighborhoods right outside of the posh ones that will allow you buy a bigger house and still enjoy the benefits of excellent school districts, entertainment and other necessities.
5. Get personal.
It doesn’t hurt to show a little personality when it comes to buying your dream home. What you shouldn’t forget is that selling a house can be quite an emotional experience for some people. Most of the time, home sellers would prefer a buyer who they feel will take care of their homes as much as they loved them over the years, and if you honestly love the home, don’t be afraid to show that a little – just don’t look desperate.
A personally-written letter along with your offer often goes a long way in helping them decide to give you the upper hand when it comes buying their home. It’s not unheard of that a seller will choose someone that feel the best about even if it’s not the highest offer.
These tips, when taken seriously, can and will help you make a better choice and save more money when it comes to buying your dream home.
Happy house hunting!
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