One of your biggest household expenses is property related and buying a house can be one of the biggest decisions you make in your life. That mortgage can hang around for a long time! Getting a great deal at the beginning can cut years off your mortgage paying life so getting it right it vritical. Check out these 17 bright ideas to save money on property:
Use a buyer’s agent. They are skilled at negotiating a great deal, saving you time and a lot of money. Many good buyers agents ability to negotiate should save you tens of thousands of dollars hence the cost of hiring one could be a return on investment.
Target Old Listings: A property that has been sitting on the market for over 30 days can give a buyer power. Most vendors or sellers are more open to negotiation as their expectation has had time to adjust to the market.
Cheaper stamp duty: Reduce your stamp duty bill buy purchasing vacant land or property that is under construction. This can save you tens of thousands of dollars.
Find negotiable property sellers: Target listings that have a poor advertising campaign. Look for poor quality photos and listings that are positioned at the back of the search results.
Diamond in the rough. Most of the market competes for manicured real estate, houses that need no maintenance because they’re in great condition. As a result, these homes sell for more and leave many disappointed under bidders. To save money, choose a property that needs some light cosmetic work.
Understand market value: the best way to understand what a house is worth is by studying the whole sales process. Start from the initial listing, inspect the property and monitor the sale. Then compare this to similar properties in the area. After a few months, you will quickly learn what something is truly worth.
Don’t share you maximum budget with anyone. Real estate agents are professionals at emptying buyer’s pockets. You will never get a great deal on property if you tell the gate keeper how far you can go during a negotiation.
Use a mortgage broker: Brokers have access to hundreds of different loan products from many banks, offering their clients the best deal. They also know banks that have a higher chance of approving a risky applicant.
Avoid a property lemon: Building inspectors can help you pick out a dud property that needs tens of thousands of dollars in repairs.
Make friends with real estate agents: Estate agents are a wealth of knowledge, they can quickly tell you about the pros and cons of an area and a property.
Think out side of the square: Off market listings or silent listings are a great way to find property with low levels of buyer competition. Speak to a buyer’s agent or real estate agent on how to target this type of listing.
Hire a conveyancer rather than a property lawyer. You will need legal representation to settle on a property. You can save yourself thousands of dollars by using a conveyancer instead of a lawyer. The end result will be the same except more dollars will be left in your bank account.
How to get a lower offer across the line. When negotiating, find out what a property seller needs for settlement terms. Some sellers could accept low-ball offers by extending a settlement by 12 months rather than the normal 60 days.
Only deal with a decision maker: You can encounter many real estate agents during one properties selling campaign. You should only deal with the agent that has a relationship with the vendor(s). This agent will have the most influence on which offer should be accepted. All your networking efforts could be wasted with an agent that has no influence on the decision maker.
How to make a stronger offer: When submitting your offer, don’t use a subject-to-finance clause. Not using this clause will give you an advantage with competing with buyers that use this clause. Just make certain your finances are in check before doing this.
Dedication: To buy a house sooner rather than later, dedicate your time, money and efforts to becoming a real estate guru. Learn the pros and cons of an area, the common property and how much they sell for.
Don’t ride the real estate roller coaster: Don’t let your emotions take over, treat it like business and make clear calculated decisions.
- About The Author..
Mark Ribarsky, a Bachelor of Business, is the founder of Wise Real Estate Advice (https://wiserealestateadvice.com.au) & Property Managers Melb (https://www.propertymanagersmelb.com.au/). He is an experienced residential property developer, a fully licensed real estate agent, a buyer’s agent and property manager. All financial advice is general in nature and does not constitute specific financial advice. Please contact your financial adviser for specific advice specific to your circumstances.