How to Save Thousands When Buying a Home: A Smart Buyer's Guide

by Hal Blake

The Two Main Goals of Every Homebuyer

If you're like most homebuyers, you have two major concerns when you start your home search:

Finding a home that perfectly meets your needs and desires.
Purchasing that home for the lowest possible price.

At Your Home Sold Guaranteed Realty Advisors we are experts on the home buying process and can guide buyers with a step-by-step purchase plan. A little preparation and expert realtor advice can save you thousands of dollars. Here’s what you need to know before you start house hunting.

Step 1: Know Exactly What You Want

Many first-time homebuyers don’t take the time to clearly define their priorities before they start looking. As a result, they get caught up in the excitement of house hunting and make emotional decisions that may not align with their long-term needs.

Needs vs. Wants: Understanding the Difference

When you search for a home, you’ll often be torn between two types of properties:

The one that meets your needs (essential features like location, size, or number of bedrooms).
The one that fulfills your desires (luxury upgrades, stylish features, or that "dream home" feeling).

It’s easy to fall for a home because of its beautiful kitchen or spacious backyard, but if it doesn’t meet your core needs, you may end up regretting the purchase.

A Simple Exercise to Define Your Priorities

Before you start your home search, take a few minutes to fill out this form:

What I Absolutely NEED in My Next Home	What I Would Absolutely LOVE in My Next Home
1. Minimum 3 bedrooms	1. Walk-in closet
2. Good school district	2. Big backyard
3. Garage	3. Updated kitchen
4. Short commute	4. Home office

This simple step will help you stay focused and avoid making emotional buying decisions that don’t align with your long-term homeownership goals.

Step 2: Understand How Sellers Set Their Asking Price

To negotiate effectively, you need to understand how sellers price their homes in the real estate market. Here are the four most common pricing strategies you'll encounter:

1. Clearly Overpriced Homes (10-20% Over Market Value)

Some sellers overprice their homes because they overestimate their home’s value or because their real estate agent is trying to win their listing.

These homes tend to sit on the market for months. Eventually, sellers either reduce the price or accept a low offer, but in the meantime, their listing becomes stale, making it even harder to sell.

Tip: Be cautious when considering a home that has been on the market for a long time. It may be overpriced or have hidden issues.

2. Somewhat Overpriced Homes (5-10% Over Market Value)

About 75% of homes fall into this category. Sellers often price slightly high to leave room for negotiation.

What does this mean for you?

These homes may still be a good deal if you negotiate effectively.
If a home you love is in this range, your real estate agent can help you determine a reasonable purchase offer.

3. Correctly Priced at Market Value

Some sellers work with experienced agents who analyze comparable home sales (comps) and price their homes accurately. These homes usually sell quickly and close at or near the asking price.

Tip: If you find a fairly priced home in a competitive real estate market, don’t wait too long to make an offer—you might lose out to another buyer.

4. Priced Below Market Value (Bargain Listings)

Sellers who need to sell quickly may list their home below market value. These homes attract multiple offers and often sell above the asking price.

How to spot a bargain:

Check if the home has been on the market for only a few days.
If it’s underpriced compared to similar homes, expect competition.
Be ready to act fast if you’re interested.

Step 3: Get Pre-Approved Before You Start Looking

Many buyers assume they can start looking at homes before talking to a lender. Big mistake!

Getting pre-approved for a mortgage gives you a clear understanding of:
✅ How much house you can afford
✅ Your estimated monthly mortgage payment
✅ The type of home loan you qualify for

Additionally, sellers are more likely to accept your offer if you’re pre-approved, especially in a competitive housing market.

Bonus Tip: Compare mortgage rates from multiple lenders to ensure you're getting the best deal. The right financing can save you thousands over the life of your home mortgage.

Step 4: Work with an Agent Who Offers a Home-Buying Program

Our agents not only show you homes—they help you find the best real estate deals with our VIP Buyer Program.

Ask your agent if they offer:

Access to off market/Unlisted homes. Omes not easily found online
✅ A Buyer Profile System – Matches your home search criteria with available homes, so you don’t waste time looking at houses that don’t fit.
✅ A House Hunting Service – Sends you alerts about new home listings before they hit public websites.

These services can give you a competitive advantage in fast-moving real estate markets.

Step 5: Negotiate Like a Pro

Once you’ve found the right home, the next step is negotiating the best price.

Key Strategies to Save Money:

Don’t reveal how much you love the house. Sellers are less likely to negotiate if they know you’re emotionally attached.
Ask for seller concessions. You may be able to negotiate for the seller to cover closing costs or include appliances.
Be prepared to walk away. The best way to get a deal is to be willing to say no.

Bonus Tip: Always schedule a home inspection before finalizing your home purchase to uncover any potential issues that could cost you money down the line.

Buy Smart, Save Big

By taking a strategic approach—knowing what you need, understanding property pricing, getting mortgage pre-approval, and mastering real estate negotiation tactics—you can save thousands of dollars on your home purchase.

If you're a first-time homebuyer, be sure to work with an experienced real estate agent who can guide you through the process, help you navigate home loan options, and find the best home for your budget.

FAQs About Saving Money When Buying a Home

1. How much below the asking price should I offer?

It depends on the home’s market value. If it’s correctly priced, a lowball offer may not work. If it’s overpriced, you can offer 5-10% below the asking price.