Buying a home in today’s market can feel overwhelming — especially when interest rates are high. But what if you could use that to your advantage? According to Robert Palmer, CEO of LPT Realty, now is actually a great time to buy — not because rates are low, but because buyers finally have leverage.
With bidding wars easing up, buyers can negotiate more favorable terms and take strategic steps to reduce their monthly costs. Here are seven powerful strategies every homebuyer should know to navigate today’s market more affordably.
- Boost Your Credit Score Before Applying for a Mortgage
Even if you already have “good” credit, small tweaks can make a big difference in today’s rate-sensitive environment. Aim for a score of 740 or higher to access better rates and loan products.
Quick wins:
Monitor your actual FICO score (not “FAKO” scores from some credit apps).
Pay credit card balances before the statement date.
Request credit limit increases on existing cards to improve your utilization ratio.
Avoid new debt (like a car or furniture) before closing.
- Shop for Home Insurance Early — and Smartly
Don’t wait until the last minute to get insurance quotes. Costs can vary wildly depending on the home’s condition and features.
Pro tip: During the inspection period, request repairs that can lower insurance premiums — like replacing an aging roof or updating electrical wiring. Early engagement with your insurance agent gives you options: negotiate, walk away, or budget accurately.
- Request Past Utility Bills
A $300,000 home that’s energy-efficient may actually cost less per month than a $250,000 home with poor insulation and outdated systems.
Ask for 12 months of utility bills — not just electric, but also gas, water, and sewer. You’ll better understand your true monthly costs, and can negotiate upgrades (like new insulation or a more efficient HVAC system) if needed.
- Understand Fixed Costs You Can’t Change
Taxes, HOA dues, CDDs, and even flood insurance can add hundreds of dollars to your monthly budget.
Make sure you:
Review millage rates for the area.
Understand if the property has a homestead exemption (and whether you’ll qualify).
Identify if flood insurance is required — even homes not on the coast can be in flood zones.
- Explore the Best Mortgage Products for You
Not all loans are created equal. Shop around for mortgage lenders and compare conventional, FHA, VA, and even adjustable-rate mortgages (ARMs).
Key considerations:
ARMs may be suitable if you plan to refinance later or move within a few years.
Credit unions often offer competitive ARM rates.
VA loans (which are assumable!) can be a goldmine for eligible buyers.
- Negotiate Seller Contributions That Lower Monthly Costs
Instead of just asking for a price reduction, consider smarter ways to use seller credits:
2-1 Buydown: Temporarily lowers your rate for the first two years.
Permanent Buydown: Reduces your interest rate for the life of the loan.
Mortgage Insurance Buyout: If you’re putting down less than 20%, have the seller pay to eliminate PMI — potentially saving hundreds monthly.
- Negotiate for the Right Repairs — Not Just a Lower Price
What reduces your monthly payment more: $10,000 off the purchase price or a brand-new AC unit that saves $150/month on utilities? Often, the latter.
As a buyer, your negotiation power is back — use it wisely. Focus on items that impact your total monthly cost — like insurance, utilities, and financing — rather than the sales price alone.
Final Thoughts
The market may have shifted, but with smart strategies and the right agent by your side, you can still buy a home and keep your monthly payments in check. By focusing on total cost of ownership instead of just the purchase price, you’ll make smarter long-term decisions and be better prepared for future opportunities — like refinancing when rates drop.
Thinking about buying in today’s market? Let’s talk about how these seven strategies can work for you.
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