When you’re buying a house, knowledge is power. Getting information about the most effective tips, tactics and strategies that you can use to secure your dream home will significantly increase your chances of success.

And, believe me, you’ll want any advantage you can get your hands on in a market as competitive as the real estate one.

It might not seem like it at first glance, but there’s a lot of valuable house buying tips that you can actually glean from the used car market. Here are some of my favourites.

1. Haggle, haggle, haggle!

Haggling is probably one of the most important skills that you’ll learn from the used car market. After all, who hasn’t tried to shave off a few cheeky dollars off a used auto in their time?

For some people, haggling can seem pretty intimidating but it isn’t that difficult once you’ve got over your initial fears about it. You just need to understand the basics of the practice and to use your intuition.

Haggling is essentially price bargaining. The would-be buyer and the seller of the product debate the price until they settle on a mutually acceptable figure. In some cultures around the world, haggling is part and parcel of everyday transactions and is encouraged. In ours, not so much.

But you’re missing a trick if you don’t try, especially when it comes to the real estate market where prices are sky-high at the moment. Conversely, a degree of haggling is expected in the used car market so it’s actually the perfect place to pick up some experience of how to do it right!

2. Always check the repair history

If you don’t want to be landed with a rustbucket that needs repairing every five minutes, you’ll want to have a look at the service and maintenance history of any used car that you’re considering buying. This will give you some good insights into any particular problems that the car is liable to.

Checking the repair history is also essential when it comes to buying a property. Again, it can give you some important indications of risks associated with the home. Risks that could end up costing you a lot of money to rectify in the future if they become actual problems.

For example, if your property is near a river that has flooded in the past, that could indicate that it could be at particular risk of flooding again in the future. Likewise, if the property has been repaired for deep cracks in the walls, that could indicate an underlying problem with subsidence – a potentially costly issue to solve.

It can often pay to hire a builder or property expert to accompany you on any viewings who will be able to point out any symptoms of underlying problems with the property like damp and dry rot.

While it might seem like a costly luxury, having an experienced pair of eyes with you can save you from making a costly mistake.

3. Boost your credit score

Your credit score is really important when it comes to buying a used car, particularly if the car is still worth quite a lot.

A credit score is basically a measure of how good you are with debt. Finance lenders use your score to decide whether or not they want to lend money to you.

If you don’t have the immediate money to buy a used car, you’ll probably need to get a loan out. In fact, that’s the most common way that people end up paying for purchases like cars and houses. And if you need to get a loan out, you’ll need to have a decent credit score if you want good terms. If you’ve got a bad score, expect to be refused for finance or face worse terms.

According to Will Craig, CEO of LeaseFetcher, having a decent credit score is absolutely integral to getting a good mortgage on real estate. He says: “It’s surprising how many similarities there are between the used car market and the real estate market, especially when applying for finance. A good credit score shows a lender that you can be trusted. It’s a key determiner in how easy you’ll find it to apply for finance, regardless of whether that’s a loan or a mortgage.”

As for tips for improving your credit score, Will says that there a few measures you can take to improve your score with lenders. “Taking steps to eliminate any outstanding credit card balances is a good way to boost your score, as well as just making sure that you paying your bills on time. All of these things will help you maintain a good credit score overall.”

4. Pick the right time of year

Used car sales agents have sales targets that define the minimum number of units they’re expected to shift each week, month or quarter. That means that you can often pick up a really good deal on a used car by approaching a dealership at the right time in the year when they are struggling to close deals. Usually, this is towards the end of the quarter.

A similar timing quirk happens with the real estate industry.

You’ll usually find that the best time to buy a home is between December and May, which is the time of year that people traditionally put their homes up for sale. This isn’t gospel and can vary from year to year but, generally speaking, this period is a buyer’s market as opposed to a seller’s so you can pick up some good deals.

According to Elizabeth Weintraub of The Balance, “almost nobody looks at homes on Christmas Day. It doesn’t matter whether you are a Christian nor whether you celebrate that holiday, there are much lower numbers of buyers shopping for a home in December. But buying on or near Christmas Day is a smart move.”

So if you can prise yourself away from your Christmas dinner, you might just pick up a bargain!

5. Shop around!

It’s a tried-and-tested technique but shopping around is often the best way to make sure that you don’t get burned when you’re buying a car.

Once you know the average price a car is going for, you can start mentally labeling adverts as good, average and poor.

The same is true when it comes to property.

Susanna Haynie, real estate agent and brokerage owner of Colorado Real Estate agrees. She says: “This is my mantra for my buyers: Just like you go to 5 car lots and study for 2 months to buy a new car, also go to at least 3 different lenders and study their offers.”

About the Author

Tom Butcher is a freelance writer who recently escaped the world of print journalism. He covers a wide range of topics, including finance, business and motoring. You can follow his (new) Twitter feed here.

Sean Cooper is the bestselling author of the book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians, available now on Amazon and at Chapters, Indigo and major bookstores, and as an Audiobook on Amazon, Audible and iTunes.