Whether you are going to purchase designer dresses or a new car or a new home, no one ever like to be conned by a seller. There are several critical issues that can compel you to pay more than the actual price, whenever you opt for buying a house. But, along with the difficulties, there are also several ways by which you can get the best deal, trust me, these are tried-and-true strategies that’ll ease up your home buying problems.
Here are a few important tips to know the proper house value and avoid overpaying for your home:
1. Know about “fair price”
Before searching for the best deal, you must know what you mean by “fair price”. Sometimes it’s worth paying a bit more if you really think the house is matching your expectations. The house must perfectly fulfill your needs. But, if you don’t want to go to the home, just ask yourself - is it wise to lose the home for merely a few thousand dollars? The final decision will be yours as no one rather than you can actually evaluate the “fair price” for your dream home.
2. Compare with recently sold homes
The best way you can know the current value of your new house is to know the recently sold house prices in that area. These are popularly named as “comparable sales”. You can also look over the listing of other homes in that particular area. But, you will actually get the best data by evaluating similar homes, in that area, which are already sold.
3. Investigate yourself
Whenever you start doing your house-hunting, always start your search from search engine results. Why? Because you can get all the data you require regarding your new home. You’ll know all the issues if anything in the neighborhood affects your property value. As a buyer, you must do your own investigation by connecting to the local police department, the local tax department, nearby schools, your neighbors, groups, etc.
Hiring a good agent is also equally necessary. You must chat with your agent to get an idea about comparative market analysis. Your agent will give you the current situation of the market and in-depth knowledge about the home you intend to buy. The agent will let you know about the fair price, based on that you can decide whether or not to advance in the deal. If there’s a bidding war, your agent will guide you properly how to make a good strategy so that you can get the most benefit from the deal.
4. Compare your mortgage
It is a truth that most of us don’t shop for a mortgage. This fact is proven by a survey conducted by the Consumer Financial Protection Bureau. It’s a grave mistake every homebuyer does at least once. Different lenders charge different fees, different interest rates, different terms and conditions that sometimes make a big impact in your home buying decision.
5. Beware from a bidding war
If you know that you are in a seller’s market, then offering a price which is lower than the asking price will not help you to grab the deal. So, it is obvious you’ll be in the middle of a bidding war issue. So, it’s better for you to be pre-approved with a mortgage loan. It’ll help you to give a strong offer. But, you must know your affordability and leave the deal if the price goes out of your reach. There are always other homes that you can choose from the market. It doesn’t matter how you are buying a home; it's important to stay on the right track.