For most people, buying a home in New Jersey is the largest purchase they’ll ever make. Many people have to scrimp and save for years in order to afford it, as well as working hard to establish the credit needed to get a mortgage loan. And that’s why so many people believe buying a home is out of reach of their budget. If you’re among them, don’t despair though. You can afford it you implement these 5 ways to maximize your budget when buying a home in New Jersey.
1. Calculate Current Expenses and Cost of Home Ownership
First, in order to maximize your budget when buying a home in New Jersey, take the time to tally up all your current expenses. This will allow you to know exactly how much money you have to work with and help you maximize your budget. Be sure to factor in such things as:
- Rent or house payment
- Insurance
- School loans
- Auto loans
- Food
- Entertainment
- Personal expenses (clothing, toiletries, etc.)
Then your next step in preparation for buying a home in New Jersey should be to calculate the cost of homeownership. This goes well beyond your monthly mortgage payment, so be sure to include in your calculations:
- Down payment
- Private mortgage insurance
- Utilities
- Maintenance and repair
- Homeowners insurance
- Closing costs
- Property taxes
- HOA fees
2. Set a Firm Price Limit
Another important step toward maximizing your budget when buying a home in New Jersey involves setting a firm price limit. Certainly, you want to get the most and best home you can, but you don’t want to buy more home than you can afford.
Calculating your current expenses and cost of homeownership will put you in an excellent position to know exactly what you can afford and what your price limit should be. Keep in mind, that pre-approval (which experts highly recommend) will let you know how much a lender will lend you, but it doesn’t always tell you what you can actually afford.
3. Bid on Houses Not Selling
Now we come to how you can maximize your budget when making offers. Although many buyers steer clear of homes that have been on the market for some time, that’s not always the best course when buying a home in New Jersey.
Yes, often a house doesn’t sell and remains on the market because there are problems with the house. Many times, though, it is often owing to fairly minor things – things that put other buyers off, but that could result in a good deal for you. For example, maybe the curb appeal isn’t up to snuff, or maybe there are too many houses on the market. So don’t rule such homes out.
If a home has been on the market for a while, the seller is usually pretty motivated and will likely be willing to lower the price. If a home’s asking price is out of your price range, it may very well fall within your budget after it has languished on the market for some time.
Even if the seller won’t lower the price, you can still maximize your budget in such a case. For you may be able to get contingencies and concessions that can make it a good deal. Instead of reducing the price, the seller may be willing to repair the roof or replace the carpet.
But you do need to tread carefully here, so be sure to consult your local agent about the best course. To find out more, just call 855-966-DEAL.
4. Eschew Bidding Wars
Almost all real estate pros agree that if you want to maximize your budget when buying a home in New Jersey, you should avoid getting into a bidding war. Typically, competing with other buyers means that you will have to increase your offer.
You may still be able to stay within your budget, but bidding wars usually get out of hand fast. So before competing with buyers, remember your price limit and talk to your New Jersey agent.
5. Work with a Good LOCAL Agent
Maybe the best thing you can do to maximize your budget when buying a home in New Jersey is to work with a good local agent. Your New Jersey real estate agent will have a thorough understanding of the local market and all its peculiarities and so can help you maximize a limited budget. Our agents are ready to help. Send us a message or give us a call today at 855-966-DEAL.