Unexpected Ways To Save On A New Home Purchase or Home Renovation

Unexpected Ways To Save On A New Home Purchase or Home Renovation

09:40 26 July in Insurance

When it comes to life’s biggest financial decisions, saving even a few hundred dollars can be substantial. This is particularly true for those purchasing a new home or renovating their current one.

While most money-saving tactics may be obvious or commonly practiced, there are multiple unexpected ways to save on a home purchase or home renovation. Let’s explore.

New Home Purchase

Exhaust All Mortgage Options

It’s easy to simply go with your current bank, who already has all your financial information at their fingertips, or through the mortgage department of the realty company you worked with.

However, there is opportunity to save thousands on interest payments and up-front costs just by shopping around.

For example’s sake:

  • $250,000, 30-year, fixed-rate mortgage at 4.5% interest = $206,016 total interest paid on loan
  • $250,000, 30-year, fixed-rate mortgage at 4% interest = $179,674

We know what you are thinking. Won’t my credit score take a big hit with all these inquiries?

As long as you submit all your inquiries within a short amount of time, they will all count as one, instead of many.

Smaller Yard

Big yard = big fun, right? While a large yard may mean the perfect arena to deplete your kids’ energy levels, show off your mowing skills, and provide some growth opportunity, it also means bigger costs.

More area to mow, more materials to buy, and more time to invest. Hiring a mowing crew will put you back at least $200 a month and if you choose to mow yourself, you are not only losing money on gas, but you are losing valuable time as well.

Additionally, your water bill may see a spike due to the increased demands of properly watering such a large area.

Shorter Commute

One ongoing cost many don’t consider when buying is daily commute.

According to estimates on the cost of driving per mile, many homeowners could save thousands per year simply by living a few miles closer to their regular destinations. This figure includes things like gas, maintenance, insurance, depreciation, license, registration, and taxes.

Choosing a home in a neighborhood far from your office will cost you more than you realize in money, stress, and time. There’s also a correlation between commute time and happiness, so consider your commute carefully!

Home Renovations

Building Materials Outlet

Located in Eagan, Minnesota, Building Material Outlet is a candy store for home renovation.

With a massive selection of discount cabinetry, countertops, carpet, tile, hardwood flooring, doors, sinks, butcher block, windows, mouldings, plumbing, landscape material, and more,  you can save nearly 80% on material costs.

The best part? All material is simply surplus from national manufacturers and distributors, so not only are you purchasing high-quality product, you are also helping conserve the environment.

Plumbing

Many home renovations involve installation and movement of a new kitchen sink and/or toilet. Moreover, if you are conducting a renovation, it is likely that your home has some years to its name.

Keeping that in mind, this is the perfect opportunity to upgrade your pipes. While this may seem like a big cost now, it will save you money in the long run. Faulty plumbing is one of the biggest money pits in home ownership.

Youtube

Youtube is slowly becoming free online schooling. However, how often do you watch how-to videos on stuff you will never do?

Use Youtube to your advantage. Obviously, using these resources depends on the complexity and legality of the renovation, but for many renovation projects, you can learn all you need to on Youtube.

Plan In Advance

Thanks, Captain Obvious. While planning in advance may seem obvious, it is something homeowners don’t do properly and end up significantly underestimating costs and time required.

Take your time researching renovations similar to yours, making detailed notes on material needs, material costs, time estimations, and skills you will need to learn. Renovations can quickly become overwhelming, so prepare the best you can.

Among all else, securing the best possible homeowner’s insurance is crucial to your financial and emotional well-being. Contact an agent to discuss your needs and vision for the future.