5 Ways to Get Big Discounts When Buying Property

When you are looking to buy property, there is a lot of research that goes into the process. One of the most common steps involved in buying real estate is getting the financing you need to seal the deal. But there are little tricks that your banker and your real estate agent won’t tell you that will help you to save money and get an even better deal.

Pay With Cash

Real Estate Cash

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The advantages to paying for a piece of property in cash are numerous. For one thing, you will not have to pay any interest or loan fees on your purchase, which will save you thousands of dollars. Another advantage to paying with cash is that you can usually negotiate a lower price with the seller. A seller is going to be much more willing to work with someone who has cash as opposed to someone who has to wait for lender approval.

Put More Money Down

Money Down on Real Estate

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The standard down payment that most bankers and real estate agents suggest is between 10 and 20 percent of the purchase price. The more cash that you put down on the transaction, the lower your interest rate will be. You will also find that the lender is much more willing to negotiate better terms with a buyer who is putting a lot of his own cash into the deal.

Improve Your Credit

Credit Score

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Prior to applying for a mortgage, you should request a free copy of your credit report from each of the three major reporting agencies. By federal law, they have to supply you with one full and free report every 12 months. Use the error reporting process outlined on the reports to get any of your information corrected to improve your score. If you start to pay your credit bills on time, then you will see your credit score improve as well. A better credit score means a lower mortgage interest rate, which lowers the total cost of your loan.

Avoid Real Estate Agents

Real Estate Agents

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Many real estate sellers are using kits to sell real estate on their own. As long as you have a qualified real estate attorney working for you to make sure that everything goes smoothly, then you can buy a home directly from the homeowner. The lack of a real estate agent’s commission gives the seller more room to negotiate, which in turn offers you the chance to get a lower price.

Foreclosures

Foreclosure

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The unfortunate financial circumstances of others can be an opportunity for you. Before you set out to buy a home, you should check out the foreclosures in your area. You can find websites that will allow you to locate local foreclosures. Just remember that foreclosures can be tricky and you should hire a good lawyer if you intend to make an offer that bypasses the auction process. If you go to an auction, remember that all auctions have to be paid in cash that day. Bring a general contractor to look over the property and make sure that you have the money on you.

Smart real estate buyers never pay full price for a piece of property. There are many ways to get discounts when buying a piece of property and you should educate yourself on them before signing a purchase agreement.

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