Jim Valentine: Saving money in the right places

A real estate transactions has a wide variety of components, many of which come with a cost. Sometimes buyers and sellers get so excited about the idea of buying or selling that they forget to be prudent in their approach to agreeing to services that have costs related to them. Other times they are so cost conscious that they end up tripping over dollars to save a dime. Take some time along the way to evaluate your situation.

One of the most common areas that isn’t comparison shopped is the loan process. The most important thing about the loan is to have an excellent loan officer, but they must be backed up by reasonable fees. Some companies will end up charging as much a one-third more than their competition, and the buyers never know it. Not only is the one-third an unnecessary extra cost, it is a lot of money when you are dealing in thousands of dollars. Make sure you know all the “hidden” costs, the little things that pop up along the way.

Home warranty companies have different programs. Make sure you shop your program and compare what is offered at each level. They aren’t the same and the difference can be a bunch on the cost of the policy, or even more if things aren’t covered that you thought you had protection for.

Make sure you get a policy that fits your purchase, i.e. – you don’t need to insure the well pump when you are on city water, but you won’t want to forget it if you are on a well.

Real estate commissions are negotiable, but remember, “if you pay peanuts you get monkeys!” Don’t go for the discount brokerage just to save a buck. Quality is what you want and there is plenty of it in Northern Nevada where our standard of practice is high. If it takes you longer to sell, you sell for less than you could have, and you incur exposure to litigation or having to initiate negotiations detrimental to your position to get out of a jam … how much did you really save?

Fees are often lower these days anyway due to operation cost adjustments the agents are benefiting from and passing along, but don’t make your agent decision solely on a fee they discounted. If they can’t represent their own worth to you and protect their income/money, what do you think they will do when it comes to them representing you and your money?

Most buyers just call their insurance agent to get an insurance policy. What they aren’t thinking about is that insurance companies change their positions and sometimes they slow down their Nevada policy writing by raising their costs. In those situations they can be twice the cost of the others. You might have used that company for 30 years, but it might not be the right time to buy a policy from them now. Call around and get some quotes before you jump in and spend the money — you could save hundreds of dollars.

Can you go in to the escrow office to sign, or do they have to send a mobile notary to you? This is another potential $150, or so, that you can save. Close at the end of the month and you will save cash flow with the prorations at that time of the month. Time your closing so you don’t have to miss work to move. Look to other areas in the transaction where the timing of things can save you money. Most physical/pest inspectors will give you a $25-$50 discount if you pay at the time service is provided instead of having them bill escrow.

Don’t just focus on the price when you are buying or selling. There are many areas where you can save money that could potentially add up to a few thousand dollars just by being aware and prudent.

When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless!  Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. dpwtigers@hotmail.com