Buying a home is an exciting time, but it can also be stressful and expensive. While a purchase this important is not the time to cut corners, you still need to find as many savings as you can. The trick is to cut the right costs without risking all the money you’re about to invest.
Keep reading and you’ll find valuable information on how you can reduce some of your bigger home buying expenses.
Work with an Online Real Estate Law Firm
Real estate transactions have to be signed by a lawyer in Ontario. A real estate lawyer takes care of all the legalities of buying a home, such as:
- Searching the title for any liens.
- Transferring mortgages.
- Drafting and reviewing agreements of purchase and sale.
Because a real estate lawyer’s fee is an expense that has to be paid, one of the easiest ways to save on closing day costs is to pay lower real estate legal fees. How? By using an online real estate lawyer.
They deliver the same quality service as brick-and-mortar law firms but at a much lower price, and they offer transparent flat-fee service. Many are also accessible outside of regular business hours, making the homebuying experience more convenient. Just be sure to do your research and check online reviews before you make a final decision.
Hire an Experienced Realtor
Many buyers think they can save money by not hiring a real estate agent. They mistakenly believe that they will automatically get a rebate on the price of the home for the value of the commission that was not given to a buying agent – this is not necessarily true.
In reality, the seller pays commission to the listing agent, who splits it with the buying agent. When a seller uses a listing agent, their agreement will likely either give the selling agent the full commission or give the discount to the seller if there is no buying agent. So in a seller’s market, there is no incentive for the seller to give the buyer a rebate.Â
Using an experienced real estate agent who:
- knows the market and how to value a home
- has access to all available listings
- is there to protect your interests and negotiate the priceÂ
will likely save you a lot more money than trying to buy a home by yourself. So not using a real estate agent as a buyer, especially when you’re not paying them, can actually cost you more money in the end.
Get Your Finances in Order
Because of the amount of money involved in buying a home, every percentage point in mortgage interest you can save reduces your costs significantly. Hold off for as long as you can to save up as much as possible for a down payment and to continue building your credit. Doing both will help you get a better rate.
You can improve your credit rating by:
- Paying your bills on time.
- Not using use all the credit available to you (i.e. don’t max out your line of credit and/or credit cards).
- Leaving your credit accounts open, even if you don’t use them.
When you are ready to buy, do your homework, shop around for the best mortgage rate, and use a lender you trust.
