×

Warning

JUser: :_load: Unable to load user with ID: 725563

How to Get Your Dream Home at the Best Possible Price

Written by Posted On Tuesday, 10 October 2017 14:48

Many people don't see buying a house as a possibility, especially due to the terrifying cost of owning one. Regardless of this discouraging factor however, here are 5 ways to get your dream home at the best possible price:

1. Research on recently sold comparable properties

You've gone house hunting and you've found what you want, the next step should be finding out the prices of comparable properties recently sold.

Comparable properties are those similar in condition, size and neighbourhood, to the one you found.

This research will help you compare and contrast, asking questions like: is the home considerably less expensive than larger properties? Or is it more expensive than smaller properties?

This way you're able to get a better deal, even when the market is tight.

2. Market conditions and appreciation rates

There are times when home prices fluctuate, making the properties somewhat overpriced in the seller's market and underpriced in the buyer's market.

To get the best possible price, you have to consider market conditions as everything greatly depends on the real estate boom and bust curve.

3. For-Sale-by-Owner properties

Another way to get your dream home at a good price is through the purchase of a for-sale-by-owner (FSBO) property.

This way you get a discount as there is no seller's agent commission, which is usually around 6% on average.

Although on certain occasions the property may be overpriced because the seller did not get appropriate agent's guidance in setting a reasonable price. But that is most unlikely so you're good to go.

4. Expected depreciation for the area

The future prospects of a particular area can greatly impact its price.

Let’s say you were interested in Henderson real estate, for example, and on visiting your preferred area you notice that big new companies are beginning to move in, or there's an ongoing plan to put up a major commercial structure in the area. Be absolutely sure that the prices of properties in that area will go up.

But if you notice that business isn't really going on well and major stores are closing down with companies moving out, then home prices will definitely come down. You can then go for the kill.

5. Negotiation

You'll never get a fair deal if you just accept whatever price they put on the house.

Some sellers would rather take the risk to list their property for higher prices – way more than they are expected to earn – because they believe the buyer would beat the price down anyway.

This is where your negotiation skills become useful. Sometimes you should name a price below the listed price, and see the seller's reaction.

If he takes it without any argument, then you know you're not getting the best price, so you beat it down appropriately till you get a fair deal.

However, here's a fair warning: if you have checked out every other available house around and fallen in love with the one you’re negotiating, do not totally express your emotions as the seller might take advantage of it and refuse to lower the price.

Also, offering lesser than the list price might increase your risk of being outbidden by another buyer, so be careful.

Everyone keeps complaining that purchasing a home is expensive. Yet, people get into new homes almost every day. The major key is to understand how homes are priced and use it to your own advantage.

With the tips above, you'll be able to get a great offer on any home in the market.

Rate this item
(0 votes)

Martina Angel is a writer and real estate agent. She is especially interested in the purchase, ownership, management, rental and sale of real estate for profit. She also volunteers for local water conservation charities in her free time.

Agent Resource

Limited time offer - 50% off - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.