Buying a home is expensive, but these 3 tips might help...
Look, buying a house will always be expensive. It’s probably the most costly purchase you’ll ever make - but that doesn’t mean you shouldn’t try to save as much money as possible when looking to buy!
Today, we’re bringing you three tips that’ll help you drop the cost of buying a house fairly significantly. Some of these tips require a bit of patience, but it’s well worth it.
Choose the perfect timing
The value of a house can go up or down due to a host of market conditions. Obviously, the current economic climate plays a significant role. With interest rates really high, buying a house now could end up being more costly as you pay more for the loan. So, waiting until things start to look a bit better may help you save loads of money. Of course, using this time to improve your personal situation can also be helpful, be that improving your credit standing via Checkmyfile or gathering just that little bit extra for a deposit; even a single pound could help slightly shift the odds in your favour.
Likewise, picking the right time during the year helps a lot. It’s discovered that summer and winter are the quietest times to buy a house. What does this mean? Fewer people are looking to buy, so there’s less demand and not as much competition. Sellers will be more eager to sell, and you have all the bargaining power. Thus, you can submit lower bids and have a higher chance of snagging a cheaper home.
Always get your own valuation
When sellers list their homes on the market, they set the price based on valuations from numerous estate agents. The question is, can you really trust these valuations? The estate agents will be working with the seller, so they’ll obviously want to get the highest price possible.
Instead, you should always hire someone to make a valuation on your behalf when buying. You can contact Dwellings Estate Agents to do this, ensuring you have a fair valuation from someone not hired by the seller. This could reveal the house is worth less than they’ve listed it for, putting the ball in your court. You can submit a much lower bid and say “Look, it’s valued at this, not what you’re asking”. The buyer is left either waiting it out or giving in and accepting the bid.
When combined with the perfect timing, this is the best way to secure a deal and save a fortune!
Save up for a larger deposit
We touched upon interest rates and mortgages earlier, but they can make a house more expensive than it needs to be. Remember, when you repay a mortgage, you are paying for the house and then interest on top of it.
So, the whole purchase will be cheaper if you have a smaller mortgage to deal with. Try to be patient and save up more money for a larger mortgage deposit. When buying a home, you may only need a 75% mortgage or an 80% one instead of a 95% or 90%. This makes a considerable difference as your mortgage repayments will cover a shorter period, so the overall interest you pay is lower.
See, there are ways to save money when buying a house - and these tips could help you save thousands of pounds. It’ll still be a big purchase, but it’s now more manageable.
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