Are you a bargain hunter? Do you love scouring the ads each week to see what special deals await you? Or maybe you spend your lunch break or Saturday clipping coupons or checking the online discounts. You can find a deal on just about anything.
Unfortunately, Modesto house hunting isn’t exactly like bargain hunting. There are no coupons for a 3 bedroom 2 bath ranch on a corner lot. But there are some strategies that you can use when shopping for a bargain house that can help you score the deal you are looking for.
The longer a Modesto house sits on the market, the more anxious a seller becomes.
If a house has been on the market for months, it could be for one of three reasons. First, the house needs a lot of work. Second, the seller isn’t actually motivated to sell. And thirdly, the house was overpriced from the start.
Look for these Modesto houses and you might just find yourself a seller that is more than willing to negotiate.
Experts say that you can save 20% to 25% when you purchase a fixer upper. The more work that needs to be completed, the cheaper the Modesto house will be. And the more skilled you are at that work, the more money you save while fixing it up.
Just be careful to account for all the expenses involved in rehabbing a house so you don’t end up blowing your budget and living in a partially completed house.
If a seller is moving because they have been transferred or they are anxious to get moved before school starts for their children, you may be able to entice them into a good deal. Offer a lower asking price, but be willing to work with their closing schedule to make the deal faster or slower. If the seller needs to be in the house after closing, then offer to let them rent the house for the number of days they need until they can be out.
If you are in the position to purchase the house with cash, many sellers are willing to accept a lower price. They like the idea of a “sure deal” that will not fall through due to problems with financing. This also allows the deal to close faster, which is a benefit to sellers that are in a hurry to move.
You spend more up front when you make a down payment, but it allows you to avoid paying private mortgage insurance. You need at least 20% equity in your house to avoid paying this insurance. If you are able to make the down payment, you will save month after month by having a lower mortgage payment.
Many Modesto homebuyers don’t realize that they can also shop around for a mortgage. If you are a bargain shopper that compares the prices of items between several stores, this will be exactly what you will want to do naturally anyway. Talk to several mortgage lenders to find the one that offers the best product for you at the best rate.