3 Simple Tips to Save Big on Your Next Home Purchase

When you’re planning to buy your next home, the last thing you want to worry about is overpaying, especially when the average cost of a new home today hovers around $310,000. But it’s not always easy to know exactly how much to offer on any given house; in fact, many first-time buyers make the mistake of offering too little and end up losing out on their dream homes because of it. To save yourself from that headache, review these three simple tips to save big on your next home purchase so you know exactly how much to offer!

1) Research your neighborhood

When you start looking for a new home, consider what’s going on in your neighborhood, or else you might have to look for the property estimator. If it’s in a rough area or there are homes around yours for sale or not selling quickly, that might be an indication that you should look elsewhere. Even if it seems like a good deal, with foreclosures and short sales bringing down prices across America, don’t be afraid to pay more if it means getting into a better neighborhood. A beautiful home is one thing; paying $200,000 less than you originally planned is another! Put some time into making sure your new home will fit into your life style and bring joy each day by being in an ideal location.

2) Consult your realtor

Selling your home can be a long, drawn-out process, which means you’ll probably be living there for quite some time as you continue to search for that perfect new home. As soon as you find a home in mind, it’s important to start looking into things like utility costs and property taxes—the last thing you want is an unpleasant surprise once escrow has begun. Also speak with your realtor; she will have experience selling homes in your area and knows what kind of value they’re generally expected to fetch. Keep these two things in mind during your house hunt and you can save hundreds or even thousands before negotiations have even begun. The numbers don’t lie: By now, you should know exactly how much home you can afford based on current interest rates and projected monthly payments. But it’s not always easy to know exactly how much to offer on any given house; in fact, many first-time buyers make the mistake of offering too little

3) Negotiate

Most people don’t negotiate when they buy or sell a home. They fall victim to sticker shock and just accept their offer as-is—or they work with a broker who, in most cases, doesn’t have access to any extra funds if you do decide you want your offer revised. When buying a home is one of your largest purchases (in most cases), it’s always smart to negotiate and see what kind of discounts are available. While some real estate markets are still considered sellers’ markets (and thus getting anything off an asking price is difficult), others are moving into buyer territory—and buyers can often get significant reductions in asking prices for their offers. So how much can you save?