The current housing market is a wonderful ally for home buyers, as home values drop and sellers are willing to negotiate. Home shoppers previously shut out of some local markets are discovering that the scales have tipped in their favor, potentially saving them tens of thousands of dollars over last year’s prices.

Still, there are other ways for buyers to save, even beyond the cost of the house itself. Lets take a look at the three areas where home buying costs can be trimmed:

At the point of sale — Maybe you aren’t aware of just how depressed the housing market is in the area that you live. It can be easy to miss especially if you live in a metropolitan area where some neighborhoods are experiencing steep declines in housing values while others are stable, even rising. Get with a realtor who can supply the information that you need for the area you are considering. She’ll be able to go over the buying and selling trends including how long homes are on the market, recent sales, etc.

At the point of financing — Competition is fierce in the mortgage industry, especially as the number of mortgage companies suffering from the sins of their past (i.e., interest free and other risky loans) continues to rise. Even mortgage companies who aren’t saddled with a lot of bad loans are finding that their customer base has shrunk with many laying off workers. The remaining companies all want your business and, if your credit score is at least 700, you are the catbird seat. Negotiate the lowest rate and fees possible and get that information in writing — brokers would love for you to pay more for your mortgage (higher commissions for them), but if your credit is excellent you can avoid the heavy fees and higher interest rates.

At the point of closing — Closing costs can easily add up to $5000 or more, making the day that you buy your home one filled with mixed emotions: on the one hand you’re happy to get the home, but on the other hand, your wallet just took a huge hit. Some mortgage companies are absorbing most if not all of the closing costs to entice you to their product which is fine but only if you aren’t getting hit with a higher interest rate and other fees. You can also ask the home’s seller to pay for some of these fees too, perhaps making closing day pain free from a financial vantage point.

Take Advantage of the Market While It Lasts

Not everyone is in a financial shape to buy a home now, but if you are you just could find yourself owning a home that will appreciate greatly once the market rebounds. Buy at a price below market value, secure the best loan available, and have someone else pay your closing costs, to save tens of thousands of dollars on the price of your new home. Current market conditions will change — waiting for prices to bottom out could mean that you will miss a perfect opportunity to jump in.

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Adv. — Once you buy your home, will you need to renovate it? If so, Let’s Renovate has lots of cool ideas and project information to ensure that your renovation goes according to plan. Stop by today to lay the foundation for your new home renovation project!

Tags: closing costs, Home Buying, home sell, mortgage broker, mortgage rates, new home, real estate agent, realtor

If you are planning a home improvement project, congratulations for taking on what can make for exciting changes to your home. You’ll come away from the project with an updated living area and likely have a home that has increased in value.

To save money and to come up with the best plan for the money, the following tips can help make your project a success:

Evaluate Your Needs — Before you do anything, what are your specific needs? Do you need a larger living room? A new kitchen? Do you want to add a deck? Enclose the garage? It is much cheaper to define your needs now then to update them again later on.

What Is Your Budget? — If you have $30,000 set aside for the project, will that amount cover all of your costs? Blueprints, licenses, contractor extras, and more can quickly skew your budget. If you need more flexibility, consider taking out a home equity loan or line of credit to pay for your improvements.

Finding A Contractor — Will you be doing the job yourself or using a contractor? Ask around to have friends recommend who they used; get references and compare at least three quotes. Make sure that the people entering your home to do the work are licensed and insured. If multiple contractors are being used will you pay each one or will the general contractor handle it for you?

Getting The Work Done — Depending on how large of a project you are undertaking, you may have to look for other living quarters while at least some of the home construction is being done. If electricity must be off for several days, can you stand living in your home when the outside temperatures are topping ninety degrees?

The Aftermath — When the project is finished, check carefully to make sure that your contractor hasn’t missed anything. Make your final payment and make sure that you have original guarantees in your hand. That newly installed electronic stove may be someone else’s responsibility to fix, not your contractor.

Lastly, enjoy your updated living quarters. The hardest part of the project is now done, relax and have fun!

Tags: contractor, equity loan, Home Construction, Home Improvement, line of credit, new home

Searching for a home can be nerve wracking, especially if you aren’t sure if the home you want is worth the price being asked or if you really should go ahead with the deal. Your real estate agent could be pressuring you to make a decision, one that can have ramifications that will impact you for several years to come.

Some buyers are skipping the usual home buying process and are dealing directly with the seller, particularly if the home is being sold FSBO. This method of home transaction has been growing rapidly especially as the internet proves to be an excellent source for bringing buyers and sellers together. Unfortunately, FSBO isn’t without some risks, particularly for the buyer or seller who doesn’t fully understand the legalities of a home transaction.

Another possibility for the home buyer is to choose a buyer’s agent. This agent isn’t working for the seller, rather she is working directly for you.

A buyer’s agent can still receive a commission from the seller of the home, but you can also pay the agent a fee for their services. This takes the pressure off of the agent who really must sell homes in order to make a living — if you don’t buy or aren’t rushed into making a decision, your fee will cover some of their expenses while allowing you to carefully weigh all options.

Though a buyer’s agent can work on your behalf, she isn’t all-powerful or all-knowledgeable. She cannot:

• Help you find a bargain, but she can help you get a fair price.

• Advise you on a mortgage or your personal finances even if trained in that area — you’re still responsible for getting the mortgage that is right for you and making monthly payments.

What a buyer’s agent can do is help you find a home at a fair price in the neighborhood you want. This may sound like an easy task, but if she must serve two masters — the buyer and the seller — then matters are complicated considerably.

Tags: buyers agent, home buy, home sell, new home, real estate agent, realtor