Purchasing a home will likely be the biggest financial investment one makes in their lifetime. It’s also no surprise that it’s getting more costly as home prices rise (albeit at a slower pace) and interest rates go up. Buyers need to cut costs and save money when possible. With the right strategies, it is totally possible for buyers to cut costs when purchasing a home! Continue reading to find out how you can save money when buying a house in Boise and the surrounding area.
1. Ask for What You Want
Our first tip to you save money when buying a house in Boise is simple, but not always easy for many people to do– ask for the things you want.
For the last few years all over the nation, the real estate market has been a strong seller’s market. Because of this, sellers have been largely unwilling to make concessions and grant perks. Luckily for buyers, there is some evidence that the market is cooling a bit, and sellers have lost some of their leverage. With this change in the real estate climate, sellers are more willing to throw in some extras to sweeten the deal for you.
So when it comes time put in an offer, be sure to ask sellers for what you want! This typically involves requesting that they leave behind larger items like appliances. Don’t be afraid to ask the seller to leave behind things you may want like the refrigerator, washer and dryer, and patio furniture. If they agree to these terms, you won’t have to buy them when you move, saving you a sizable amount of money.
Not to mention, many sellers are downsizing and don’t want to have to move these items into their new space. With bidding wars less common, they may be willing to grant your requests. As the saying goes, you’ll never know if you don’t ask! It doesn’t hurt to try!
2. Improve Your Credit Score
Another way to save money when buying a house is by improving your credit score. This is a tried and true way of saving money in the long term in real estate. Equipped with a better credit score, you’ll receive a better rate and terms on your mortgage. Lenders offer better rates to borrowers who are more financially responsible and pose less financial risk.
Even just a percentage point or two can save you a ton of money over the life of your loan. So get to work now improving your credit score– it’s never too early (or too late) to improve your credit and financial hygiene!
To improve your score, you should certainly avoid taking out new lines of credit, this is a big “No” when looking to purchase a house. You can also pay down (or off) existing debt, and make payments on time. We also recommend checking your credit report for errors. Unfortunately, these are more common than you may think. If you come across any errors on your report, get them cleared up before applying for a mortgage as they may negatively affect your credit score.
3. Try to Pay 20% Down
While this may seem daunting for some, paying 20% down on your home can save you money in the long run. This allows you to save money when buying a house for a couple of reasons.
To begin, your monthly mortgage payments will be smaller, thus increasing your chances of paying off the loan early and saving a significant amount on interest. Additionally, a 20% down payment will allow you to access conventional loans, which typically have better terms than other loans like FHA loans. Lastly, you won’t have to pay for private mortgage insurance (PMI).
Even if paying 20% down isn’t feasible for you, paying as much down as possible will still save you some. For some guidance here, you can contact a Southey Real Estate at (208)340-3585. We are happy to walk through all financing options!
4. Buy During the Off Season
Historically, spring and early summer have been the hottest seasons in real estate. The weather is nice, people are house hunting, and sellers have it good. During colder months, though, buyers are far fewer, which means sellers may be willing to sell for less. This is especially the case if a seller couldn’t sell their house during the spring or has to list it during the winter which is when prices are typically lower. Buying during the winter just may allow you to get a deal and save money.
5. Consider a Fixer-Upper
The other option here to save money when buying a house is, of course, buying a fixer-upper. This has the potential to get you the best deal and save you the most money. But you do have to be willing to invest some money and/or sweat equity to make the needed repairs and upgrades. So if you take this route, you must make sure you know exactly what you’re getting into and whether the savings will outweigh the repair costs.
Work With an Experienced Boise agent!
These are some effective ways to save money when buying a house, but there are plenty more ways that an experienced Real Estate agent can facilitate. With home prices still rising, you need to be aware of all the strategies to save. An experienced Boise agent can help you do just that, especially by bringing their negotiating skills to get you the best deal possible. So if you’re considering buying a house in Boise and want to save money, contact us today at (208)340-3585.