As a homebuyer, the secret behind getting a very good deal depends on how you can transact on the purchase price. The process of buying a house requires an investment of time as well as money. If you want to get a good deal, you need to do your homework very well. When you become a homeowner, the money you had put toward rent not only goes toward a mortgage but to insurance, repairs, maintenance and upgrades.

Negotiating the purchase price of a property down 5% from what the seller is asking and are able to get the loan you want at a quarter point below market rate. Sounds like a great deal. But not so much if the reason the seller is willing to decrease the price is that the property needs repairs or renovations. If you are saving $15,000 on the purchase price but you have to spend $25,000 gutting the kitchen, the home might not be much of a deal.

homeowner

Khalfani-Cox said, “You have to think of homeownership not just as a one-time event, but as a process over the life of you owning this asset that you’ll be able to manage it wisely and make smart choices with it,”

As a homeowner, you should not think, ‘Oh I got an interest rate of 3%, I got a good deal!’ or ‘The home is being offered for $300,000 and I got it for $280,000. I got a great deal

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In the context of owning your home, if you plan to live in the house for the next seven to 10 years or for the rest of your life knowing whether you got a good deal depends on how well you managed the overall homeownership process. A homeowner can expect to pay around 3% of the of the closing price per year on hidden costs, such as repairs and utilities, although your expenses will vary depending on your location and the size and quality of your home.

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Trying to get the best possible deal on a home, you need to think about long-term. In addition to the first price of each home, consider the investments you’d need to make years down the line. Being aware of the big picture now could help you save big now as well as later.

Culled from MSN | The biggest mistake homebuyers make when trying to get a good deal.

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