Whenever you're shopping for a house, you always want to spend as little as you can to get a residence and property that suit your needs. While being a careful negotiator is one way to accomplish this goal, there are some other strategies that you can think about that will provide you with much more value. While some of these ideas require a bit of work, you'll be left in a better financial situation than the average homeowner. Here are some different ways to get more value when you buy a new house.
Line Up A Renter
Getting a renter into the house as soon as you've completed the purchase and have performed any necessary renovations is an ideal way to add value. You can either rent the entire house to a someone or live in the house and rent out part of it. Obviously, some houses are more conducive to the latter scenario. For example, if there's a walkout basement and the basement has (or you can easily add) basic amenities that any renter would need, you could convert this space into a rental apartment and line up a tenant as quickly as you can.
Sever The Land
If you're buying a house that has a lot of land, it's smart to explore the idea of severing the land. While you'll want to thoroughly discuss this option with your real estate agent in advance of taking steps to buy the house, severing land is an effective way to add value to your new purchase. Severing means that you're dividing your lot into two or more lots and selling them. Doing so requires a bit of work and expenses due to surveying and permits, but can be profitable. For example, if you were to buy your house and its property for $200,000, perhaps you could sever a small lot out of the far side of your property for $30,000.
Split The Purchase
A big way to add value to your house purchase is to split the purchase with a trusted friend or even a family member such as a sibling or cousin. Perhaps you can afford to buy the house yourself, but doing so would be tight financially. By having a partner pay for half of the down payment and half of the mortgage, you'd end up with more money in your pocket — and still be a homeowner. Having a roommate has many advantages, too.Share