6 Ways to Reduce Costs When Buying Your First Home

When it comes to decisions, there aren’t many as big as buying your first home. Once you’re on the ladder, you will (or rather, will have the ability to) just keep on walking up, up, up. But That first step is the highest, the one that requires the most work. And also arguably the costliest purchase, even if you eventually go on to own a more expensive piece of property. When you’re inexperienced and have no assets to back you up, the money factor becomes more important. There are ways to reduce these costs, however, as we’ll see below.

Where to Look

It’s not so much the property itself — as in, the four walls and the roof — that’ll determine how much you’ll pay. It’s where the house is located. When you’re just trying to buy your first home, it’s best not to look for your dream house, or even dream location, but at a property that is “good enough” (rather than “perfect”). You’ll have your eyes on that trendy neighbourhood, but is it really worth the hassle of struggling financially, when you may be able to comfortably afford a similar sized home in a more under the radar neighbourhood?

Work with an Expert

Some people want to cut their costs in every area. This is not a smart approach. While there are some services that you don’t need, there are others that are in your best interest — they’re the ones that can help save you money. When it comes to buying a home, this involves using an experienced real estate agent. They’ll be able to smoothen the process (and that shouldn’t be undervalued), but more importantly, help you to save money. They have an in-depth understanding of the market, how to get the best deal, and so on.

Shop Around

You (hopefully) already know that a home is, well, a long-term investment. While some costs, such as moving your goods to your new home, are a one-off, others will follow you around. It’s these costs that you need to work on keeping to a minimum. You’ll feel the weight of a high monthly cost more than anything else! As such, it’s important that you’re shopping around for the best deal. Mortgage rates can vary significantly between lenders. Take your time, do your research, and make sure you understand exactly what’s involved in the deal — there are some attractive looking offers that can end up costing more than you’d expect when spread over a long period.

Get Saving

You may be eager to get onto the property ladder as soon as possible, but it’s important that you’re not rushing into things before you’re ready. Everything will be much easier — and cheaper — if you take the time to save up as much money as possible before buying a property. You’ll be eligible for better mortgage deals, for starters, but you’ll also have money that can be used for all the various expenditures connected to moving. Some people get an expensive mortgage AND a loan to deal with the costs of bringing the home up to speed and so on, which will obviously cost more money.

When to Buy

When you’re parting with such a large amount of cash, and making such a commitment, then any advantage you can get is worthwhile pursuing. Did you know, for example, that certain months can reduce the cost of buying a house by, on average, 5-7%? Most new home listings appear in the spring and summer, which make them higher, but prices begin to drop once winter arrives. If you don’t mind which time of the year you move, then look at putting offers in when the weather is chilly. Plus, by moving in the winter, you’ll be able to get the property in order in time for summer. Nice!

Stay Patient

The reason why people end up spending more money on their home — and, in fact, in general — than they’d like is because they rush into things. If you can have an inch of patience, you’ll find you’ll be better equipped to override the temptation to just make a purchase because you’re tired of looking. So learn the art of patience — your bank balance and future you will thank you!

Conclusion
There’s no getting around the fact that buying a house is expensive. It’s just how it is! But it doesn’t have to be quite as expensive as you might think. Take the tips above, and you’ll be on your way to getting the best deal possible.