Saving money is never easy, but for first-time homebuyers, the challenges seem greater and more difficult to overcome. From down payments to home furnishings, buying a home certainly stresses the average budget. Luckily, saving money as a new homeowner isn’t difficult, at least for those willing to put forth minimal effort to keep more money in their bank accounts. First-time homeowners (and others) should try to work with the following ideas to reduce the expense of buying and moving into a new home.
Homeowners Insurance 101
There is no getting out of buying home insurance, but considering the financial benefits and protection it offers, why would you want to? It’s no secret that the added expense of homeowner’s insurance can be intimidating, but there are also many ways to cut those costs and find a policy that keeps your home safe without draining your wallet. First-time homeowners oftentimes enjoy discounts and deals that current customers do not.
First, determine the amount of coverage you need. Too much or too little coverage will cost you tremendously in the event you need to file a claim. Next, determine if you need add-on coverage, such as flood protection. Work with your budget. Finally, compare costs with several insurers to find the best-priced home insurance policy for your needs. Quotes are free and available upon request or via online comparison tools. Don’t hesitate to compare rates to find the best home insurance agency.
Be sure to take advantage of potential home insurance savings to further reduce the costs of your policy. These savings include:
- Using an insurance agent rather than a mortgage lender
- Not waiting until the last minute to buy a policy
- Taking advantage of money-saving discounts and deals such as multi-policy discounts, to take an additional 15% or more from your home insurance coverage costs
- Not purchasing a policy based solely on costs alone because this may cost you extra time and money in the long run. The most expensive policies are not always the best policies.
Learn more about the insurance company, their available policies, the claims process, experience, reputation, and other vital information to ensure you’re getting the best deal. Also, if you do your homeowner’s insurance research with the Webb Insurance Group, we will take care of all of that for you and make sure all of the above is included in the options we provide you.
Insulate the Home
Without insulation, heat, and air conditioning from an HVAC unit dwindle out of the home. If you’ve ever heard anyone say that you are ‘cooling or heating the outside,’ there could be more truth to this than you realize if the home lacks insulation. For a cost of just over $2,000, a homeowner can insulate the home and prevent energy leaks, drafts, and other cases of energy-loss. This effort results in savings typical of around 10% – 20% spent on energy every year.
Furthermore, A well-insulated home saves a homeowner approximately 10% – 15% in heating and cooling costs every year. You’ll have a nice chunk of change left over each month after installing insulation. Insulation also improves comfort in the home, a benefit for the entire household. On average, it costs just over $2,000 to insulate a home. You’ll earn this money back and more in one-two years.
Don’t Delay Repairs
Appliances wear out. Materials around the house wear out and break down. Leaks happen in fridges, water heaters, and of course, the plumbing system. When problems occur, pick up the phone to schedule a professional repair immediately or at your earliest convenience. Far too many homeowners mistakenly think that repairs aren’t that important or that the item will magically fix itself if it is ignored for long enough. The truth is, waiting to call a repairman is a mistake that not only causes additional hassles around the home, but it can actually make it more expensive when you finally make the call.
It is best to try and not be the hero of the story and fix things yourself unless you are truly qualified. Many DIY (do it yourself) repairs are totally possible, but it is essential to recognize when you are not fully capable and when you’ll need professional services. Preventative maintenance service aims to eliminate breakdowns. Whether it’s the plumbing, HVAC unit, roof or other major components, professionals offer preventative maintenance service for a small cost that minimizes breakdowns and repair costs over time. Once per year is all it takes to keep problems at bay – and save a considerable amount of money in the process.
Consider Buying a Multifamily Property
Although owning a multi-family property may not be everyone’s dream, it is a great way to accumulate money that can cover the mortgage and other expenses each month. Multi-family properties offer a home for you and your family as well as an income-producing property. Do the proper research and play your cards right and you’ll have the opportunity to earn substantial extra income each month or at least enough to cover your own living expenses.
Discounted home insurance rates for multi-family properties may cost only slightly more than home insurance for a single-family home. Request quotes and compare costs with a few providers to find the best policy and pricing. Don’t forget to ask for discounts when purchasing a home insurance policy to increase the savings that you’ll enjoy.
Your disposable income needs and amounts change after purchasing a home. You’ll soon learn this if you have not already. Homeowners encounter new expenses they didn’t incur as a renter, such as home insurance and repairs. It is always necessary to sit down and revisit your budget and make adjustments to ensure your household lives within its means.
As a first time homeowner, you should prioritize paying off the debts that you’ve accumulated. There are many different ways to begin this process. You can call creditors to find out if maybe they will settle for an amount less than what’s owed in exchange for a lump-sum payment. Many creditors offer this option for those willing to ask. Once you pay off debts, it increases your monthly budget amount and allows you to start planning for future endeavors that may require better credit.
There will always be simple ways to save money as a homeowner. The money-saving ideas in this blog post are just a few of the best ways to start your savings process. Each idea included on this list is simple enough for any new or prospective homeowner to implement into their lives at the beginning of their purchasing process to keep costs as low as possible. Of course, these ideas are a few among many ways to save money as a new homeowner. Never miss the opportunity to save more money!
*This content was not written by a licensed insurance agent.*