A Buyer's Guide to Home Prices
Buying a home is a big deal... probably the biggest deal most of us will ever make. Being prepared, proactive, and creative pays off - financially and emotionally. Here are some pointers to help you get the best buy on the house you want.Buyer Be Aware
The more you know, the better you'll buy. Some basic homework on current market conditions will give you a sense of whether or not time is on your side and how much negotiating room you have. Your Realtor is an invaluable resource for local knowledge about the property market in general, the house you're interested in specifically, and prices of comparable homes that have sold recently.
Are property sales in the area brisk?
Then be prepared to act quickly and decisively. When you see what you want, get a realistic offer in fast. Desirable properties don't last long in a hot market.
Is the market slow?
You'll have the luxury of browsing leisurely, low-balling an offer, or negotiating more aggressively. You might ask the seller to throw in extras like lighting fixtures or pool-cleaning equipment.
Why is this house for sale? A divorce? Relocation? Job loss?
An owner who has to move will be more willing to drop the price and close the deal promptly.
Has the property been on the market long?
If so, it might be over-priced, or have unusual features with limited appeal. If you like its individuality, you're the one buyer they've been waiting for, and in a good position to negotiate.
Recognize Potential
Can you see what others can't?
If you can look beyond the dreary décor, imagine a window here, or a wall taken out there, you can get a good deal on a property with little sex appeal. Whatever you save on the purchase price you can put towards creating your personal Shangri-la. Get a professional's advice on what's cosmetic and what's structural to avoid major renovations.
Accept a small quirk.
If every other buyer wants a four-bedroom Colonial but you can live with a small study instead of an extra bedroom, you won't face much competition. If a small quirk fits your lifestyle, you'll have room to negotiate.
Keep Your Cool
Can you walk away?
Once you find "the perfect house," resist the temptation to let your heart rule your head when negotiations begin. Stay as detached and unemotional as possible (easier said than done) to get the best deal done.
What selling points can YOU offer?
Price isn't your only bargaining tool - play any other chips you might have that will make you a more appealing buyer. For example, if you can put down a significant deposit, your smaller mortgage will be quickly and easily approved, and the seller can be confident the deal will go through. If you're in no rush to move, you can let the sellers choose a closing date that suits them - often a big plus for families moving out of the school district.