Discover a Smarter Way to Save on Your Home Purchase
When buying a home, your first instinct might be to negotiate the price down. However, there’s a smarter way to save money upfront. This strategy can provide you with more financial flexibility and instant savings.
The Secret to Saving Big When Buying a Home
Many homebuyers focus on negotiating the price, assuming it’s the best way to save. However, this might not be as effective as you think.
Price Negotiation vs. Seller Credits
Imagine purchasing a home listed at $500,000. You negotiate $20,000 off the price, bringing it down to $480,000. This reduces your mortgage by about $100 a month, but it would take you 16 years to realize the full $20,000 in savings.
Instead of negotiating the price, ask for seller credits. Seller credits cover part (or all) of your closing costs upfront, giving you immediate savings of $20,000.
Why Seller Credits Are Better:
- 💵 Instant Savings: Seller credits reduce your out-of-pocket expenses at closing.
- 🏠 More Flexibility: With lower upfront costs, you can keep more cash on hand for home improvements or investments.
- 📈 Better Financial Planning: By securing seller credits, you have more resources to handle unexpected expenses or make upgrades to your home.
Real-Life Example
John, a veteran, used a VA loan to buy his first home. Instead of negotiating the price, he asked the seller for a credit to cover his closing costs. John saved thousands of dollars upfront and avoided a down payment, thanks to his VA benefits.
Bottom Line
Next time you negotiate a home purchase, focus on seller credits instead of price reductions. It’s a smart way to save upfront, maintain financial flexibility, and reduce overall costs.
If you’re thinking about buying a home, let’s chat about how to maximize your savings and make the home buying process smoother.
