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How To Save Money Buying A House

Updated on September 3, 2012


Like anything else in life, home buying requires a bit of effort if you want to save money and if you want to get the best deals out there.

While there's no place in purchasing a home for outright fighting or quibbling, there are many ways that the savvy shopper can cinch a deal saving thousands of dollars just with a little strategy. 

Yes, I said strategy.  It makes sense when thinking about purchasing something that will probably be your biggest expenditure throughout your life that you end up "having the upper hand". 

Too many people today buy homes under pressure or pay thousands more than necessary because they simply don't understand the home buying game. 

Let's examine some ways you can save on buying a home and save BIG.


  • Negotiate your own loan beforehand. Get the best deal you can find and know how much your loan is going to cost you specifically. Bargain with lenders and financial institutions until you have the absolute best loan possible. Times are tough and banks and lenders still need sales too so hang tough and don't be afraid to walk away and look elsewhere.
  • Check out the locals. There are some areas of the country that offer local home buying incentives on things like property taxes. This is definitely a place-to-place offering and in order to determine if there are any local incentives, contact realtors in the area that you are considering buying in....or local government officials. Such an example exists in a county in Arkansas where the homeowner can file a 1-time application and money is deducted yearly from their property taxes....up to $350. Ask about any and all tax incentive programs in the areas you are considering buying in.
  • Timing is everything. Traditionally, spring is supposed to be the best time to buy because folks have money in their pockets from tax returns. However, with the market so set on its ear these days, I would say that just about any time would be the best time to buy. Get a feel for the circumstances no matter if you are buying a new home or an existing home. Is the seller motivated to sell and how badly? If you think the price is too high for your tastes, it probably is and don't be afraid to negotiate!
  • Knowledge is golden. Know what the homes in the area or like homes are selling for. You can easily check with realtors, in the newspapers or on-line to see what homes are selling for. Then don't let anyone try and tell you otherwise! Once you have the facts, you are invincible. Give a low ball figure when dealing with realtors. Don't actually tell them your ceiling for a home. Don't give away more than they need to know about anything. Realtors want to get the highest price they can get for the house and they don't care really if you can afford it or not. Too, their extra commission on another couple thousand is going to cost you loads per month on your mortgage payment!
  • Have a poker face. Make sure you never let on if you're dealing with a realtor which house you truly like best. Make happy noises about every house no matter what and don't jump up and down or clap your hands when you find "THE" house. Make it a game....make them drag out of you if you're interested and then give them a low ball offer.....say 10-15% lower than the asking price. That way, you have a negotiating cushion and you can only win.
  • It must stand up to inspection. Don't waive having someone professionally inspect the house of your dreams. For the money that it costs to actually have a professional go through the house, it could save you thousands of dollars down the road. If things are found that need fixing, don't buy until they’re fixed.....period. If the owner refuses to put on that new roof or shore up that deck that needs reinforcement, you weren't meant to have the house. Don't be suckered into buying a lemon! Most often if your inspection doesn't turn up things that are wrong, the final inspection will anyway.
  • Lost homes. If you can get a good deal on a foreclosure, that's one way to save big bucks. However, statistics show that many people are flat out angry when they lose their home and it is very common these days to find houses virtually trashed right before the new owner moves in. Foreclosures are homes sold "as is" so buyer beware on these deals. If the house is vacant, hopefully you will get away with a gem of a deal. However, if you take the plunge and then discover vandalism afterward, there really is nothing to be done about it except trying to pursue the perpetrators. The house, however, could end up being a stone around your neck to repair.

These are just a few ideas on how to buy a home and keep it a happy experience. 

Most of all, do your homework and be ready for home ownership.  Owning a home is not just about the mortgage payment, property taxes, etc.  It's also about maintenance and keeping your home up to par so that one day, if you decide to resell it, you'll get the maximum money you can back out of it. 

Make a list of all the things in a home you absolutely have to have and then make another list of things that you'd like to have but are not necessities.  It is easy to see it on paper....the difference between want and need.

Whatever steps you take to buy a new home, just remember that you should be in the driver’s seat and should never let anyone hurry you into a quick sale or pressure you in any way.  If that is the flavor you're getting from the experience, RUN and don't look back. 

Whenever you decide to buy, take at least a day or so to think it over and decide if it's really something you want to do. 

Hindsight is always 20/20 and knowing that you made the right decision before considering it a mistake later is the goal!


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    • joym7 profile image

      Joy 3 years ago from United States

      Work on your credit score, it will be beneficial while buying home. It’s a kind of credit saving.