Homes have to be one of the most expensive investments anyone can make in their lifetime. For this reason, buyers are constantly on the lookout for ways to save money and lessen the financial burden.
That being said, estate demand continues to rise as the pandemic eases. The costs of the average home will slowly rise despite the recent drop. Because of this, you might need to exert time and energy looking for a house that is not too expensive but suits your needs. However, it is not about working hard! It is about working smart, and in this article, we are going to share some vital tips to save money when buying a home in 2021:
1. Negotiate the price
You might automatically assume that the price you see on the listing is final. However, that is not true in most cases. Although many of these prices come from research and are meant to be attractive to buyers, there is always room to negotiate. If you are uneasy about negotiating, then hire a real estate agent to help you out. They will use whatever leverage they can to compromise towards a price favourable to both buyer and seller.
2. Consider the auction
Did you know that even auctions sell homes? They do, and many of the homes here are excellent bargains. They are a great place to save plenty of money, but the downfall is that you will not have as much time to look through the home thoroughly. We recommend doing a little more research about purchasing homes at auctions if you are interested in trying it out.
3. Pick the optimal mortgage
Just because you have managed to negotiate a home's price much lower does not mean your money-saving endeavours should end there. Even when you choose a mortgage, there are things you can keep in mind to help you save money.
For instance, you might want to look for mortgages with little to no immediate costs, such as little to no survey or application fees. Do note that some of these benefits may come with higher interest rates, so it is vital to carefully consider and compare each mortgage to pick the right one.
4. Look for fixed interest rates
Many people believe that interest rates will only go higher as time goes by. To ensure that you are not negatively affected by rising interest rates, we recommend looking for mortgages with fixed interest rates with terms as long as possible. For instance, you may find lenders offering fixed rates for as long as five years, while others may offer up to ten. In many cases, the longer, the better, but do compare the various mortgage solutions to see which one works best for you.
5. Hire a no sale, no fee solicitor
What happens if you have hired a solicitor that has failed to help you buy or sell a property? In many cases, you might have wasted your money. This is the reason we implore you to look for solicitors with a no sale, no fee policy.
If they fail to do what you expect them to do, you should not have to pay their fees. Note that this is not a guarantee that your solicitor will be successful, but at the very least, you would not lose money on legal fees if nothing happens. It is also important to note that such solicitors do not include third-party fees (such as searches) in their no sale, no fee policy.
6. Make sure fixtures are in writing
Make sure every part of the home is listed in writing, including the fixtures. This ensures that when the contract is closed, you can legally expect everything that has been listed down to be in the house.
Suppose there are missing fixtures or other problems that were supposed to be addressed in the sale. In that case, you can refer to the writing to be compensated for the ongoing situation.
7. Work with the right conveyancing solicitor
When we say "right," we are not telling you to go look for the cheapest conveyancing solicitor to save money. Remember, you get what you pay for, and for all intents and purposes, you do not want to be stingy with the solicitor. Otherwise, you might end up with delays, aborted purchases, and other costly issues—none of which will help you save money. As such, you need to take the time to find the right conveyancing solicitor for the job—one that you can afford that still meets your needs.
8. Work with a fixed-free conveyancer
The one mistake you do not want to make when working with a conveyancer is to work with one that racks up fees on an hourly basis. This is a great way to end up spending more money than necessary on the service.
To avoid this issue, work with a conveyancer with a fixed-free guarantee. This way, you would know exactly how much you will spend on such a service, allowing you to track and maintain your finances much more easily.
9. Pick a conveyancer with a search guarantee
If you are buying with the help of a lender, work with a conveyancer with a search guarantee. They can ensure that they will do a replacement search for free if your initial purchase falls through. This is important because searches can be quite costly, and you do not want to pay for something that proves unsuccessful.
To reduce the likelihood of a purchase falling through in the first place, work with a proactive solicitor.
There are plenty of other tips you can consider apart from those we have already shared to save money on your home purchase. Avoiding lender's buildings insurance, getting insurance quotes early, comparing survey fees, renegotiating costs, and more can help you save money.
Although such money saved from the various tactics may be tiny compared to the final cost, they will add up to a large amount of savings you can direct to other activities, such as renovations and repairs. That said, take your time when you buy a home. You may feel like you need to rush through the process, but taking it easy allows you to consider as many ways to save money as possible. Slow and steady also allows you to consider every option. Given that selling or buying a home can affect your finances in the long term, patience is a virtue.
Conveyancing Calculator offers instant online and fully-regulated residential conveyancing quotations in the UK to help buyers and sellers save money and successfully reach their financial goals. Use our calculator today and save your money when buying your home!