Five Ways to Save Thousands of Dollars and Buy a Cheap Home
Posted in: Real Estate
Do you know how to find cheap homes? Although there are many different ways of finding cheap homes, there are just about five rules you need to master for this goal. Once you have mastered them you will be able to save yourself thousands of dollars from your next home purchase. Get Dave the Property Guy to assist you.
Head to the Cheap Towns
You can’t find a cheap home in an expensive city, so you need to head to the cheap towns. A cheap town doesn’t have to be dull and drab; there are lots of inexpensive cities with good schools, excellent recreation activities (such as movie theaters), shop, take long walks and all while living in a house that costs less than $50,000.
Of course, it is not easy to find good jobs in such towns. In fact, the bad job situation is one of the reasons why homes in such places are cheap. If you are not looking for a job, however, then you would fit perfectly in any of the cheap towns. For example, if you have just retired or you are a home based worker, then you will have no qualms about living in cheap towns. Just give them a wide berth if you are looking for a place with a high probability of finding a high-paying job.
Look for the Intrinsically Cheap Homes
Do you know that some homes are just cheap by design? Head to the cheaper parts of your town, or look for the home designed that are not too much in demand (they tend to be cheap). The problem with setting your mind on a specific part of town, or a particular home design, is that you won’t know whether or not there are cheaper alternatives.
This advice should not be misconstrued to mean that you have to live in a dangerous part of town, or a dilapidated house, if you want to save money on your house purchase. The thing to do is to set your priorities right so that you can dispense with what you do not need. Try it and you will be surprised at the amount of money you can save.
Negotiate for a Lower Price
Negotiation is another method via which you can buy a home at a cheap price. If negotiation does not come naturally to you then you should brush up on your negotiation skills. Read on negotiation techniques, practice these skills, and you will increase your chances of negotiating for a lower price.
Most sellers deliberately set their prices a little bit higher while in reality they would take less than the quoted price, which is why individuals with sharp negotiating skills always buy cheaper houses.
Choose Your Financing Carefully
Unless you are paying for your house on a cash basis (which is rare), the final amount paid for the house will be much higher than the stated price. This is so because you have to factor in the interest. Therefore, you can save thousands of dollars by choosing a financing term with a low interest rate. Other ways in which you can save money include avoiding mortgage insurance, saving on appraisals and avoiding or lowering loan fees.
Save Money on all the Steps
A home purchase process is comprised of different stages/steps, and each of them costs money. Therefore, you can save a lot of money (overall) by saving money on each of the steps. For example, you can opt for a walk-through inspection if you are reasonably certain the house is in a good condition. There are tips and tricks you can use to get low insurance, cheap appraisal rates or even save on the closing costs. In short, you shouldn’t just focus on a low price if you are looking for a cheap home. Visit http://davethepropertyguy.com