Conservative Think of Home Improvement And Tips

Tip #17 in our series of 70 ways to save money when buying a house is to never tell your agent the top price you will pay for a house.

In our last tip, I explained to you the importance of having your own real estate agent on your side. And if you are going to but property you should have an agent on your side, especially if it does not cost you anything.

But, your agent is human, and there is no way to tell if he/she has your best interest in mind. The higher the price of the house you buy, and the more you pay, the larger the commission for your agent. So if the agent was selfish, she would try to get you to pay as much as possible. She wants you to buy the most expensive house you looked at because if you buy it, it will be the largest commission for her.

By pushing you just a little bit towards the more expensive house, she will make a few hundred dollars more. Not bad for a few seconds of work.

Or say you are negotiating with the sellers, and your agent knows you can pay more than you are offering. Will she be able to go in to the sellers and really sell them on the offer? Probably not.

That is why I suggest you never tell your agent or any real estate agent how much you can pay for a property.

Your agent will ask you how much you can afford, but do not tell. Give a range. Tell him,

We would be comfortable paying between 225- 250 thousand for a house.

There is no telling if your agent will keep your information confidential. By law, they are supposed to, but it is very hard to prove, and you do not want to take that chance. By giving them a range they have all the information they need to do their job well. They can show you all the houses that meet your needs in the price range you gave him. Then, if the agent shows you a house that is above your price range, you might want to think about getting another agent.

After giving a solid range, there is no reason an agent should show you a house that is above your range, unless there were not enough homes in your range. But if you do some homework, you should easily be able to choose a range that you will be comfortable with and that has plenty of homes to choose from.

By keeping this information to your self you protect yourself from the human tendencies that get us all in trouble. Realtors are human, and you should remember this.

By giving your agent a range of prices of homes you want to see, you are making it easier on the realtor to narrow down homes to show you and you can save yourself a boatload of money at the same time. The best thing is, that you would never know if your realtor did something that made you pay more. Do not let the realtor screw it up for you. Keep this information to yourself.

Tip #23 in our series of 70 ways to save money when buying a house is to buy a home warranty.

Despite the love buyers show for their newfound properties, there could be things beneath the surface not foreseen or witnessed. From a cursory glance, homes may appear spotless with no maintenance required whatsoever, even on resale homes. The word of the seller may cloud enough judgment to avoid covering insurance costs on the home. There have been countless cases where a buyer moved into a home only to find pre-existing wear and tear on the home and leaks a couple of months later. For this reason, a home warranty should be considered.

In essence, a home warranty is a service agreement that protects your home’s major operations including its roof, water systems, structure, and appliances. They serve a dual purpose in the real estate game: for sellers to use them as a valuable marketing tool during their selling period and for buyers to rest easy knowing their potential home is secure. These plans can be geared towards any home from the spanking new to the 50 year old duplex. As long as your items are in decent working order and conditions arise after the issuance of the home warranty, you should be covered.

Many buyers make the mistake of interpreting home warranty plans as home insurance policies. They are both totally different things. Home insurance policies are plans providing coverage for burglary, theft, and natural disasters while home warranties cover breakdowns caused by wear and tear in addition to failed circuits, plumbing, or any other home malady. A home warranty is excellent for anyone that wants to gain a higher level of confidence when moving into a resold home. In addition, home warranties are touted by real estate experts as critical to after-sale problem prevention. Although buyers still have the right to file suit on sellers who fail to disclose construction and appliance problems, home warranties can lessen the blow.

Today’s home warranty policies usually have a standard 12 month term with the option for more. 6 months or more can be provided in seller coverage as well. In addition, many home warranty companies also offer complimentary inspections to ease the transition into the plan. When it comes to selecting a home warranty, make sure you compare multiple providers. Comparing means finding how which items are included in standard coverage, what items are parts of separate policies, the co-payment, and finding out the reputation/track record of each company. By shopping around, you are virtually ensured that you are getting the best coverage for a fair price.

As buyers, you can have the seller pay for your home warranty along with other concessions. This usually occurs when there has been concessions made by the buyer, such as paying for the house at slightly over market value or surrendering to owner financing. Check to see if you are eligible for a home warranty plan paid for by your seller today for better real estate terms.