Buying a home is more than just finding the right location and floor plan. It’s also about getting a home that’s affordable. Negotiating a good price on a home can mean more equity, and a better investment.
Getting the lowest price and the best deal on a dream home really is possible, but there are some important things to consider on the journey to getting the right home for you. The more you know about how to get a good deal on a home, the greater the chance of finding that special home at an affordable price.
1) Know Your Purchasing Power
Purchasing power matters. Get with a mortgage broker or banker to become pre-approved to know your housing budget. Don’t waste your time looking at homes that are above that mortgage pre-approval. Focus on the homes that are at or below your housing budget.
As a matter of fact, searching out homes on the lower end of your budget can often be a good idea. Purchasing a home on the lower-end of your budget can leave room for upgrades or possible additions to the home. Which, in turn, will increase the value of the home.
2) Look at Homes That Have Been on The Market a Long Time
In looking for a home with the best value, expand your search to homes that have been on the market for a while. The seller may want to make a deal, and may be more likely to be flexible with the price or other terms. In some cases, the seller may be close to a foreclosure or short sale, which may increase the chances of negotiating the offer price to well below market value. Work with your agent to discover, if at all possible, what the sellers situation might be. Though understand that in most cases, the seller does not have to disclose their own financial situation to potential buyers.
Homes that have been on the market a while often have only cosmetic problems which might be turning other potential buyers off. Looking past the faded green carpet and the purple walls can often lead to getting a better price for the home as it has been on the market for a while.
3) Work With the Seller
By being flexible and working with the seller, through your agent, home buyers can often get a great price on a home. For example, some home sellers may need a longer period of time to vacate the home, or they may not be interested in making repairs but might be willing to reduce the price. While not every seller will be someone a buyer can work with, many sellers will consider most reasonable offers.
4) Get a Home Inspection
Any home a buyer is considering purchasing should be inspected by a reputable home inspector. By inspecting the home, the buyer reduces the risk of problems with the home in the future. An inspection can ensure most of the homes major systems are working properly, and can determine if any serious repairs are needed.
However, note that cosmetic issues, such as carpet, paint and flooring should not deter a potential buyer from purchasing the home. These items can usually be replaced or corrected after the home is purchased.
5) Understand if Paying Cash is Prudent
If you’re in a position to pay all cash for a home, it may be possible to get a better deal from some sellers. Not only is an all cash offer a great motivator to possibly get a lower price on the home, it also shows the seller that you are serious about buying. Paying all cash means the seller doesn’t have to worry about whether a mortgage will be approved, or whether the house will appraise for the value in order for a buyer to close on the loan. You may want to consult with a financial professional to see how this may affect you, and whether it is a good idea to pay all cash for a home.
Buying a home is a big decision, and it can be quite a process trying to find something that works for your finances. Following these tips can help you move forward with confidence.
The above post “5 Ways to Get a Great Deal on a Home” was provided by Kevin Guerrero of Keller Williams Clients’ Choice Realty. To find out more about Kevin and Keller Williams check out the ABOUT US page.
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