Home Ownership Costs

How can you lower your high home ownership costs?  Home ownership has the advantages of property value and of privacy; one of the downsides  though is that of home maintenance costs: failed heating and air conditioning, peeling paint, clogged sewer pipes, roof holes, basement flooding, and an endless list.  Read on for cost lowering tips!

-Obtain several bids for your home repair project(s).  Unfortunately most customers fail to look for more than one repair bid. One example is where the first two companies price the chimney repair at $3500; then by surprise the third company offers the same repair for $350! What’s was the difference?  The third company was client oriented in its approach.

-Negotiate  fees and or ask for a quote that is competitive. Don’t feel guilty of trying to obtain a cheaper quotation even if you may have already decided on the first quote. Don’t be too salty and bland in your approach, but if you try diplomacy you might just obtain a little lower rate.

-All home owners are vulnerable to scams for home improvement; especially the elderly;  always take your time on approving a home improvement and if they go to you or your parents you have to be especially careful on approving them.

-Do not make home renovation that may subtract from your real estate’s value; for example; adding swimming pools, bocce courts, or a rooftop turret for your telescope will detract from your house value; while adding kitchens, bathrooms, living space, etc., can actually add to our home value.

-Do  not purchase the best home in the neighborhood, because the highest priced home in the neighborhood doesn’t appreciate as much as the more modest houses. The priciest homes in the neighborhood do not obtain as much as a return as a more modest one will.

-When you buy a home; bargain hard for a lower price!  Rather than letting your emotional attachment lower your negotiating skill, remember that with today’s bad economy you as a potential buyer have a great amount of leverage when buying from a real estate sells person.

-Remember, closing costs are negotiable. In other words even though traditions dictate that the purchaser bears the brunt of these, as a savvy purchaser you are you may want  to get the seller to agree to some of the costs so that he can  sell the house in today’s tough market.

-Insist on interest on a deposit you make toward the purchase of a home.  Make sure that the person holding the deposit  is going to pay interest on it.

-Before you purchase a home hire a home inspector. If the seller will not permit you to inspect it walk away from the deal. Try to have the inspection made before the sell with the objective of lessening the price.

-Avoid buying a house when the housing market is overheated; in today’s economy you might be able to take advantage of the low selling market and may be able to obtain a lower price do to more limited demand, especially if you have a good income and good credit rating.

-It is mostly unfeasible to build your own home, It will cost you much more than  merely purchasing a home that has already been bought.

-Buy a multifamily house. Buying a duplex, a triple decker, etc., you can actually obtain enough rent to maintain the house.

-Move into a smaller home. A smaller home is more manageable, to own and maintain.

-Purchase a home in a less expensive neighborhood.

reference: 1001 Ways To Cut Your Expenses by Jonathan D. Pond