Posted On May 08, 2019
Buying a home is a big financial commitment, and it’s no secret that it gets expensive, between the down payment, closing costs, and other fees. When you are making this big of a purchase, you will probably be looking for ways to save. Apartment Therapy contributor, Kate Streit, interviewed real estate experts nationwide to compile this list of the top four things you should never skimp on when buying a home.
Electrical work – you need electricity for everything. Running your appliances, turning on the lights, and charging your phone. Faulty electrical work is not only inconvenient, it can be dangerous. Electrical fires or short circuits can cause irreparable damage to your home and anything that’s plugged in. If you are buying an older home, find out when the network and appliances were last upgraded. Even if everything passes inspection, it may be worth investing in rewiring or new appliances now to protect yourself later.
Location – it’s the one thing you can’t change about your home. The suburban sprawl might not be worth an hours long commute each day and the wear and tear on your vehicle (and yourself!). On the other hand, a city townhouse may not be able to accommodate your growing family or plans to eventually work from a home office. Choosing the right location the first time will save you the cost of moving again if the location does not suit your needs.
Homeowners insurance – what exactly does your policy cover? If you live in a flood zone, you’re going to need to take on an extra insurance policy. If your region was recently hit by a natural disaster or other weather-related activity, homeowners insurance may be more expensive. Audit your policy annually, drop what you don’t need and add what you’re missing, and be aware of what your policy does cover. Investing in adequate insurance coverage ahead of time can better prepare you for when disaster strikes.
Home inspection – a home inspection is not only a requirement, it can be the difference between a good and bad investment. If the home will need costly repairs, the inspector will let you know. Then, you can either reconsider the deal or renegotiate your offer. A new roof can cost anywhere from $8,000 to $16,000, depending on the location and the extent of the damage. Finding that out before the deal is finalized can save you thousands!
When you’re buying a home there are plenty of ways to save. Between down payment assistance programs, seller concessions, and other grants and offers, you could save plenty, without skimping on other necessities. Working with the right loan officer can help you save where it counts. Let me know if you have any questions about your upcoming home purchase.
Sources: Apartment Therapy