The costs of buying a home are high, but they can become insurmountable if you cut out necessary services to save money. Here are some things to think about before you choose your next home.
Homeowner’s Insurance – Lenders require just enough homeowner’s or hazard insurance to cover the mortgage in case of disaster. While it’s tempting to go for the minimum, consider getting a policy that provides full replacement value. According to Nationwide, you can lower your monthly payment by raising your deductible. Also, ask for discounts that will lower your premium, such as installing smoke detectors or wind-resistant shutters. Some insurers will lower costs if you insure your home and automobile with them together.
Inspections – Even with fairly new homes, there could be problems, so don’t waive your right for inspecting the property with a licensed inspector to save a few hundred dollars. The purpose of an inspection is two-fold, to determine what is or is not in working order and to determine the potential obsolescence of systems and appliances, due to age, poor maintenance or items not built to current codes.
For Sale by Owner – Your Berkshire Hathaway HomeServices network professional is licensed for your protection. They know how to protect your interests, including which fees are customary to pay, contingencies that allow you to walk away if the seller doesn’t perform or an inspection doesn’t pan out. Otherwise, you could overpay for the seller’s property, pay the seller’s portion of closing costs or make other costly mistakes.
