Wednesday, 23 September 2020

How to Save Money on Your Next Family Home

 

Is it time to pack up and move the old homestead? Whether you are growing your family or merely need a change of scenery, you have many decisions to make. Considering that a home is the most significant financial decision many people make, expect to base judgments on economic factors. 

How can you save money on your next family home? The following eight tips can leave you with more cash in your wallet and less stress when you tuck yourself in at night.


1. Downsize

There are no two ways around it — the more space you have, the more your home will cost. This principle extends far beyond the initial purchase price. It costs anywhere from $2,000 to $3,000 more a year to heat every additional 1,000 square feet of footage. That figure doesn’t include water or other maintenance. 

It makes sense to buy the smallest comfortable abode if money drives your decision-making. If you feel cramped, look for acreage. They aren’t making more land, which means you won’t lose money on the investment — and you can build an addition or she-shed later. 


2.  Go Modular

Today’s modular homes offer considerable advantages over traditional site-built models, and the finished version is indistinguishable from the latter. Manufacturers assemble components in the factory, meaning that weather will not delay construction and increase costs. 

Unlike mobile homes, modular homes increase in value at the same rate as traditional builds — you won’t lose on your investment over time. You will get a speedier move-in date and greater energy efficiency, further decreasing costs. 


3. Location, Location, Location 

You probably know that finding a new home in New York or San Francisco will come with a hefty price tag. In general, you pay less per square foot the further you travel away from a metro center. This situation presents a non-dilemma if you work from home and prefer the serenity of the country. 

However, if you live for the hustle and bustle or have to commute, consider those factors. What’s the point of splurging on a McMansion that you never see because you spend all your time driving to and from work? 


4. Identify Your Priorities

Before you so much as type “Zillow” into your web browser’s address bar, sit down and write a list of needs and wants. Needs are those things that bear little compromise. If you always wanted hardwood flooring to make kitty-vomit cleanup a breeze, that’s your prerogative! 

Many homebuyers value features such as Energy Star appliances throughout —  you can save a bundle on utility bills. Outdoor living areas and garage storage are other must-haves for many purchasers. 


5. Then, Choose Quality 

Once you determine what you will not live without, save yourself money on your next family home by investing in quality. While doing so may cost you more upfront, it will save you considerable cash over the long haul. 

For example, you will pay $60 per square foot on average for marble countertops if you upgrade later. If you are building a new home, you may find that you can include them as an option and save yourself considerable cash. Whip out your calculator and see what you can save by wrapping desired features into your mortgage. 


6. Spruce Up Your Old Pad

As much as you don’t want to spend money on the old homestead when you plan to move, some details could result in more cash when you sell. Finishing your basement can have a return on investment (ROI) of 69% in some regions. 

You should touch up your exterior and interior paint at a minimum — it costs little but makes your home look newer. Stone veneers, garage doors and steel entryways also add to your property value. They might help your real estate agent add the “sold” sign to your listing more quickly. 


7. Consider a Fixer-Upper

If you are the handy sort, why not consider a fixer-upper? Maybe you hesitate because you have heard too many fix-and-flip horror stories. However, there’s a world of difference between real estate speculation and saving money on your next family home. 

Even if you worked construction for years, get a professional home inspection before signing. Maybe you can tackle an indoor plumbing overhaul, but fixing a cracked septic tank is beyond your skillset. You don’t want to bite off more than you can chew to have it cost thousands —realistically assess your abilities. 


8. Research Financial Aid Programs 

If you are buying your first home, your state may have programs offering anything from downpayment assistance to financial counseling. Look into these resources. 

Additionally, if you served in the military — thank you for your service — you can qualify for a VA loan. These instruments require zero money down. Some areas likewise provide incentives for professionals like teachers and police officers to move into disadvantaged neighborhoods.


Save Money on Your Next Family Home With These Tips 

When it comes time to buy your next family home, you want to save as much money as possible. The eight tips above can help you save ample cash for throwing a fabulous housewarming party. 

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