Four Ways to Get a Good Deal on Your Home Purchase

Four Ways to Get a Good Deal on Your Home Purchase

Have you been searching for a home but you are not exactly sure what a fair price is to pay? With these suggestions and tips, you can be certain that you are not overpaying.

Everybody is looking for a good deal. When it comes to buying a home, whether it is your first or your tenth home, you want to get it at a fair price. And if you get it at a bargain price, that’s even better! But how do you know if you are getting a fair deal on the home you are considering purchasing? Here are four ways you can ensure you are getting a good deal on your next home purchase.

1.     Find Information about Recently Sold Homes that are Comparable

When comparing comparable homes, it is important to look at several factors. The location is definitely one of the main factors in determining a home price. Square footage, features and condition are also important to consider. Start looking for the homes surrounding the one you want to buy and find out what they have been selling for (if any of them have sold recently). The homes you research should also be similar to the one you are considering if you want to get a fairly accurate estimate on how much you should expect to pay.

2.     Look at the Similar Homes that Didn’t Sell

It’s just as important to look at the similar homes in the area that haven’t sold as it is to look at the homes that did sell. If there are homes that have been taken off the market because they simply didn’t sell, it could be because they are priced too high. Is the home you are considering in a similar price range? If so, you could be paying too much. Also, if there are several vacant homes that are similar to the one you are buying, the prices should be relatively lower because of the larger inventory of available homes.

3.     Negotiate with the Homeowner

Don’t be afraid to make a lowball offer.  In a soft market especially, lowball offers can get the seller to negotiate and to indicate how low they are willing to go.  Realtors and agents exist to refuse lowball offers for their clients and to prevent their clients from being upset by an offer.  When an actual owner is selling their home, they don’t have to worry about the realtor’s commission and other costs that are typically associated with selling a home. However, this could work against you, too. Without the guidance of a local real estate agent, the home seller may have their home priced higher than it should be. This is where your research about the surrounding homes can help you when negotiating a fair deal.

4.     Look for Appreciation and Depreciation Statistics for the Area

If you are moving into a home where the community or neighborhood has held its value well in a declining home price environment nationally, you may be more comfortable with a price that is similar to last year’s.  However, if the neighborhood’s homes have decided over the last several years, sellers may want out before running the risk that next year’s prices will be still lower. If you see local businesses closing down or dilapidated building in the community, it is probably an good sign that you may be able to negotiate a lower price. 

With a little extra work, you can determine a fair buying price for nearly any home that you are considering purchasing. If done properly, you can save thousands of dollars on your purchase.

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Image: Image courtesy of phanlop88 at FreeDigitalPhotos.net

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