Everyone wants to save money. After all, who doesn’t mind having a couple of extra bucks left over from their budget? It can be especially gratifying when you’re in the middle of a costly home purchase or sale.
Want to lessen your expenses? Here are a couple of things you can do to save money from your real estate transaction.
- Conduct due diligence
Whether you are buying or selling a property, don’t get into any agreements before you have all the information you need. Exercise due diligence and do your homework regarding the property involved. If possible, try to learn more about the condition and value of the house through your own means. This can shave a couple of dollars off your total expenses.
Nowadays, conducting real estate research is extremely easy. You can find most of the information you need on various Telluride CO real estate websites and online forums, such as TellurideAffiliates.com (this website!) There are also numerous articles online from reliable sources that give tips on a wide variety of real estate matters.
- Use free real estate listing websites
Nowadays, it does not matter if you choose to have a paid listing or sell your property through a free real estate listing website. These free services make their money from advertising, meaning they don’t need to charge you a penny. They more or less offer the same experience, anyway.
You can also try to your own website if you are able to promote it. Website builders such as Wix and Weebly are among the most popular, mostly because they are so easy to use, even if you have little to no knowledge on website design.
- Take advantage of tax credit certificates
If you are buying a home for the first time, a mortgage credit certificate (MCC) can help you save a significant amount of money. Offered by the Colorado Housing and Finance Authority, the MCC slashes the federal income tax that you would accrue on the property.
The MCC program allows you to acquire a $2000 credit per annum against your federal tax liability. If your loan has a duration of 30 years, this means a total savings of up to $60,000. Read more about the state’s MCC program here.
- Save up to make a 20 percent down payment
The top reason why we encourage home buyers to put 20 percent down on a house is so that they can avoid getting a private mortgage insurance (PMI). This is required by lenders if you can only afford to pay less than 20 percent for the down payment.
Private mortgage insurance costs can add up to a total of $2,000 a year if you acquired a $200,000 loan. You pay the insurance monthly on top of the mortgage amortization you need to make. This can strain your budget, especially if you choose to get an adjustable-rate mortgage.
Learn more about Telluride, CO real estate
Feel free to get in touch with our team at 970.728.0213.