Money-Saving Tips During the Home-Buying Process
Buying a home is likely the largest financial transaction you will have during your lifetime. Most home owners purchase multiple homes during their lifetime. Whether it is your first time buying a home or your twelfth, address these 7 key steps to protect your wallet and to protect your overall investment:
- Understand the roles and duties of real estate agents! Do not assume the real estate professional is working for you. Most buyers do not know whether the agent who is showing them real estate is negotiating the best price for the seller or for the buyer. Be a wise and informed consumer and get this clarified before seeing any property!
- Don't disclose confidential and material information about your needs and financial abilities to sellers and their agents.
- Understand commissions; they are paid out of the money you bring to the closing table.
- Mortgage companies and appraisers protect and promote their own interests, not yours. Ask how much your loan will cost, per month. Discuss closing costs and fees and get them in writing. Your appraisal does not ensure that you are getting a good deal.
- Design a strategy for negotiation with sellers and their agents before you make an offer. Know your spending limits. Avoid being swept away by pressure from agents or competition with other buyers.
- Attend your property inspections. A good inspector will show you not only what is wrong with a property, but also how to care for it during your ownership.
- Buy with your overall financial picture in mind. Know what you can afford; differentiate between what you need and what you want. See a financial planner before buying.