Managing The Costs Of Moving
By Cheryl Gochnauer
I am a habitual coupon-cutter. That means I apply the same penny-pinchingprinciples no matter what I've got my eye on, whether it is marked $10 or$100,000.
My family is in the process of moving into a new home. This is undeniablythe biggest big-ticket item we've ever purchased, but my guidelines remainthe same: Get the best deal on everything from the mortgage to the welcomemat. Here are some suggestions on managing the costs of moving.
TRY FSBO. By reading up on the subject and working closely with our titlecompany, Terry and I went the "for sale by owner" route and saved severalthousand dollars in commission fees. At the same time, we worked with anexcellent buyer's agent to find our new home (a no-cost convenience for us -sellers pay her fee). Even if you decide to list with a realtor, try tonegotiate a lower percentage. For instance, you might agree to do themarketing (running ads, showing your house, getting a contract) and pay therealtor half commission to handle the ensuing paperwork and closing.
BUY SMART. Is that fixer-upper really a good deal? Maybe. But figure ineverything you'll have to do to make it "perfect" (including your time).
Also, take a hard look at the neighborhood. Are homes still appreciating invalue? Remember that you'll be selling this house yourself someday. Choosewisely, and your house will make money for you. Choose poorly, and you'lltake a financial bath.
If you're buying new, try to get in on the first phase of a development. Asthe second and third phases are built, your home will automatically go up invalue. That's because building costs continue to rise, making it impossiblefor builders to recreate your home for the same price. This is an excellentway to build fast equity.
MORTGAGES. Contact several mortgage companies, comparing interest rates andclosing costs. When you find your best deal, call your favorite lender andask them to match or beat it.
FURNISHINGS. I spotted my dream refrigerator in the clearance aisle, but ithad a small dent in the side. The price was right, but before I settled forthe dent (even if it wouldn't show once it was installed), I wrote down themodel number and approached a competitor. Sure enough, they agreed to matchthe clearance price. I got the frig I wanted, brand-new and in the box forthe same price as the damaged one.
I am a big believer in supporting mom-and-pop businesses whenever possible.
So I shopped for several pieces of furniture at discount centers, againnoting model numbers and prices. Then I gave my hometown furniture storethe chance to match their prices. They did, plus threw in free delivery(which saved me another $150).
MOVERS. Packing requires you to go through your house and examine everysingle item. Is there a spot for it in the new place? Now is the time toget rid of the dead weight. Toss the junk. Have a garage sale. Give tocharities. Don't pay to move stuff you never use.
Rent a trailer and ask friends to help you load. If you use professionalmovers, call around for the best hourly deal. On moving day, make sure you've got everything boxed up and ready to go, so you aren't paying movers towatch you pack.
Moving is expensive, no doubt. But hold onto your frugal mindset as youmake your way through the process, and you may be surprised at how much youcan save.
(Comments? Contact
Cheryl@homebodies.org
or visit her website at
www.homebodies.org
where you can purchase an autographed copy of her new "Stay-at-Home Handbook: Advice on Parenting, Finances, Career, Surviving Each Day Much More." Copyright 2002 Homebodies.Org, LLC. Permission granted for use on DrLaura.com.)
