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

FSBO or For Sale By Owner remains a popular marketing alternative for people who are buying or selling a home. Sellers like them because they can cut out the realtor’s commission, thereby saving them thousands of dollars while buyer’s like them because they usually can find a home at a good price.

However, just because a home is listed FSBO doesn’t make it a good deal. In fact, there are some things both the seller and buyer can do to help close a deal quickly and at a price acceptable to both parties. Read on and we’ll examine how a seller and a buyer can make FSBO work for them:

If You Are The Seller

Secure Your Home’s Market Value — Prior to putting your home on the market, you’ll need to get it professionally appraised. Hire an appraiser who can help you determine a price for your home, the same price that a realtor would recommend your home be listed for.

Get Ready For Show — Assess the interior and exterior of your home and spruce it up as needed. Remove excess furniture, touch up the walls with paint, clear the clutter off of the kitchen counter, plant new flowers, and trim shrubbery. You may need to tackle additional improvement projects when the home inspection report is completed; anticipate what needs to be done before the home sells now to avoid rushing around later.

Start Marketing — Selling FSBO means a big time commitment, something that should be considered before doing it yourself. List your home in Craigslist and find a good FSBO site to feature your home. You’ll need a For Sale and information holder to place in front of your house, with plenty of pamphlets or sheets listing your home’s many features. Price your home at our below its appraised amount, but no lower than 5% lower or you cancel out the reason for not using a realtor in the first place.

If You Are The Buyer

Ask For A Copy Of The Appraisal — Dealing directly with the owner puts you at a good advantage, allowing you to ask the seller questions directly. Secure a copy of the seller’s appraisal and do your own market analysis on the neighborhood to confirm that the house is being sold for its appraised price.

Make An Offer — Most FSBO homes are placed on the market for the same price a realtor would list the home for. This means that the seller has some latitude when it comes to price. You probably can’t shave a full 5-6% off of the price of the home, otherwise the seller basically loses the money they would have paid in commission to you. On the other hand, if the home has been on the market for several months, offering 3% below the appraised value of the home can be a fair middle ground for both parties.

Get An Inspection — An independent inspection (that you pay for) from a trained home inspector can be the most valuable investment you make. Once you have the completed report in hand, ask the homeowner to handle whatever items should be addressed. The homeowner could counter and slash his price and ask your to handle repairs or simply refuse to address major problems. Estimate the cost of these repairs and subtract them from your final offer.

Toward Completing A Satisfactory Transaction

Once an agreed upon price has been reached and repairs made, then you’re ready to set a closing date. As a seller, your organization skills have paid off; as a buyer, your diligence has been rewarded resulting in a home at an attractive price.

Tags: FSBO, home appraisal, home buy, home inspection, home sell, home valuation, neighborhood report, real estate, realtor

If you’re planning to move, hopefully you are well along the way toward putting your plans in place. If not, you’ll find that the days leading up to the Big Move will be stressful ones, certain to add tension to what already is a very stressful time in your life.

On the other hand, if you’re like me, you’d much rather have your move go as smoothly as possible — without all of the aggravation that comes with scrambling to make everything happen quickly at the very last moment.

Can you get rid of stress completely? Only if you are comatose! Seriously, you can minimize the aggravation by ensuring that you develop a plan and put it place ahead of time. The following practical tips will help you do just that, IF you’re willing to put them in motion:

Get Your Moving Boxes Now — Some of the best boxes for moving are those copier paper cartons at your workplace. Sturdy and durable, they can handle most anything, are stackable, and easy to seal up. Just don’t grab them at the last moment — they go fast and often never make it to the company dumpster.

For Special Boxes Visit Your Big Box Retailer — Plenty of stores can sell you large packing boxes, but the best deals are usually found through your warehouse club or big box hardware chain. Look for special boxes for mirrors, paintings, glass, clothes, and other items. Buy in bulk; save money!

Pack What You Don’t Need Now — If you know that there are some items you definitely won’t need until after you make your move, then pack these items now. Lots of seasonal and holiday stuff can be packed and ready to go. Clear out your attic, garage, basement, or shed of all unnecessary stuff — sell off what you don’t need and pack the rest. Label everything clearly!

Get Top Notch Supplies — Besides using sturdy boxes, get packing tape and a thick black marker to label everything. Write on the top and on the sides the room where the box is to be placed. Use bubble wrap and newspapers to pad the contents.

Stuff You Need Now — As you near the moving date, set aside personal items and clothing you’ll need for the days leading up to and through the move. You’ll bring these things with you or, if you are flying to your new home, you can pack these on the date of your move and send them ahead of you via parcel post.

Stress is the part of every life change, but you can minimize its effects by planning way in advance to ensure a good move.

Further Reading

Getting Ready For Your Big Move

Home Buying 7-Step Plan, Step 6

Moving At Year End: Tips To Ease The Crunch

7 Steps For Buying Your Next Home

Tags: Home Buying, moving, real estate, realtor, selling