How to Save Money on Real Estate Transactions

 Posted on February 20, 2025 in Real Estate Law

In January 2025, home prices across Connecticut were up 10 percent over last year, with a median price of $415,800. There were 2,419 homes sold in January 2025, with the average number of days on the market at 51. The number of homes for sale fell by 14.7 percent.

As the largest purchase made by most people during their lifetimes, buying a home can be exciting and terrifying at the same time. It can also be full of unexpected costs. You may have saved for a long time to ensure you had a down payment when the perfect home came along. What you may not have expected is the many "extra" expenses associated with real estate transactions.

These include an array of closing costs, private mortgage insurance, and other expenses that can be decreased or eliminated. There are three phases in your home buying experience, and all three have associated costs that can be minimized. Speaking to a Stamford, CT real estate attorney can not only make the process go much more smoothly, but it can also save you money.  

Saving Money Pre-Purchase

While we are a DIY nation, having a realtor and a real estate attorney by your side as you look for the perfect home can save you money in the long run. Your realtor will have critical market knowledge and information regarding off-market properties and will understand the market’s ups and downs. This can make a significant difference in finding the best home and negotiating a reasonable price.

You should also learn as much as possible about Mortgage Credit Certificates, which can save you thousands of dollars by reducing the taxes you will owe for your new home. In some cases, Mortgage Credit Certificates could save you as much as $60,000 over the life of a 30-year home loan.

Saving Money During Closing

Closing costs can range from 2 percent to 5 percent of the home purchase price and include various fees and expenses. Many closing costs are negotiable and can include:

• Lenders often require appraisals to ensure the loan amount does not exceed the worth of the home.
•  Credit report fees are charged by the bank and are usually about $25.
• Loan origination fees are approximately 0.5 percent of the total loan amount.
• Title search and title insurance ensure that the property you are purchasing has a clear title.
• Attorney fees will vary, but buying a home without a knowledgeable real estate attorney brings its own set of potential problems.
• Property taxes may have to be reimbursed to the owners if they have paid the taxes ahead.
• Recording charges are fees paid to the County for recording all documents.
• Home inspection fees can range from $500 to $1,250.
• Homeowner’s insurance costs will depend on whether you have a large enough down payment to avoid having to have private mortgage insurance (PMI).
•  Escrow fees are for funds held by the title company until all the paperwork is signed.

Saving money on closing costs can include shopping around for the best mortgage deal to secure a lower interest rate, negotiating with the seller to share some of the closing costs, opting for a no-closing-cost mortgage (closing costs are covered for a higher interest rate), and requesting multiple quotes for home inspections and appraisals. You can also check into local government assistance programs that assist homebuyers with closing costs.  

Saving Money After Closing on Your Home

If you were required to obtain private mortgage insurance (PMI), it was likely because you had a low-down payment. PMI is very expensive, so dropping it as quickly as possible is worth your while. In some cases, obtaining an appraisal that shows 20 percent equity in your property can be enough to be allowed to drop PMI and secure less expensive insurance.

Contact a Fairfield County, CT Real Estate Lawyer

To ensure you do not inadvertently make a misstep during the purchase of your new home, speak to an experienced Stamford, CT real estate attorney from Law Offices of Daniel P. Weiner. Attorney Weiner has an in-depth knowledge of residential real estate transactions that will benefit you during your home purchase. Call 203-348-5846 to schedule your free consultation.