Want to find out how to save money buying a house? We’ve got plenty of tips to help sweeten the deal!
Buying a house might be the single largest purchase you make in your whole life. Even though it’s a hefty expense, there are ways to make the financial impact a little easier to bear. In this post, we’ll reveal six top tips for how to save money buying a house. Let’s go!
1. Take Advantage of Government Incentives
If you’re a first-time home buyer, the government has some great incentives to help save you some money. One of the biggest opportunity for savings is the Land Transfer Tax (LTT) refund which offers first-time buyers up to $4,000 in credit.
There is also the Home Buyer’s Plan which gives first-time buyers the opportunity to use RRSP funds towards a down payment. Other credits include the First-Time Homebuyer’s Tax Credit and the GST/HST New Housing Rebate.
Your realtor and lawyer should be able to help advise you on what you’re eligible for. Don’t leave money on the table; be sure you apply for what’s yours.
2. Look for Motivated Sellers
Aside from credits and rebates, there are several tactics you can use to ensure you get the lowest sale price possible. One of these is to try to look at properties where the sellers are motivated to move sooner rather than later.
If the sellers want to get out as quickly as possible, you likely have a better chance of having a lower offer accepted. The most common reason for a rush sale is if a seller has already purchased another property and needs to close on their existing home for the sale to go through.
Look for houses that have been on the market for a long period of time, such as 30 days or more. Some will even have a specific close date, indicating that the sellers have already bought. In these cases, the seller may be more willing to negotiate on price.
3. Make Your Offer Clear of Conditions
Although they’re becoming a little less commonplace in today’s market, offers without conditions are often a great way to get a seller’s attention.
Sellers will give more value to offers that are clear of conditions since it minimizes the risk they take on when they accept. In fact, they may be prepared to accept a lower price if your offer is firm.
Bear in mind this tactic should only be used if your financing is firmly in place and you feel comfortable waiving typical conditions such as a home inspection.
4. Selecting Your Realtor Wisely
Some of the items on our how to save money buying a house can only really be taken advantage of if you’ve got the right realtor helping you. If you’re looking to save money, it’s probably not the best time to use your relative who just got their license.
In order to save money, you need an experienced local realtor who has a record of striking deals in your chosen area. Not only will they ensure you get the house you want, but they’ll also negotiate the best price on your behalf.
Do your research and evaluate realtors based on their experience in your area and with the type of property you’re looking to buy.
5. Buy the House that May Be Overlooked
In many neighbourhoods, you’ll often see a lot of updated homes and a slew of others that can only be termed “knock-downs”. But what about the ones in between? The ones that are outdated but have potential. Builders are unwilling to pay a premium for homes that don’t need extensive work. And many buyers are unable to see past the shabby décor.
These are often the homes for which you can get the best deal. If you can train yourself to see the character and potential in an outdated home, you might just uncover a hidden gem. With less competition from other buyers, you could find yourself saving lots of money on the sale price.
6. Look for Long-Term Cost Savings Too
So far we’ve discussed the sale price of a home and how to save on some of the additional costs. But it’s important to remember that upfront expenses are only one piece of the equation. You also need to think about the longer term and the costs associated with your mortgage payments.
While rates with various lenders may seem similar, these decimal figures translate to large amounts over time. Getting a good rate and choosing the right term can save you thousands in interest fees.
Use a mortgage broker to finance your home and get the best rate. Don’t be afraid to pit different brokers against each other to make sure you get the lowest rate possible. It may seem like an inconvenience but taking a few hours to negotiate now could save you big in the long run.
Although it’s usually a smart investment, there’s no doubt about it that buying a property is seriously hard on the wallet. However, there are ways to soften the blow. Follow our tips for how to save money buying a house and you’ll no doubt feel a lot more comfortable with your purchase.
Thinking of buying a home? Get in touch today!
Let us help by guiding you through the buying process and reviewing how we can best help with your search.