These days getting a great deal on a house seems like it’s getting harder and harder. Prices are going up and inventory seems to be going down, it seems like sellers have the upper hand. It’s getting more rare to find buyers getting a great price in a desireable neighboorhood for under asking price. In an attempt to get a better deal you may be tempted to cut some corners while looking for that bargain. I’ve outlined a few ways to show how bargain hunting for a home can backfire.
Tempted to work alone?
Trying to buy a home without representation can cost you big time! It’s important to know that buyers agents get paid by the seller. The typical seller agreement makes provisions for bot the buyers and sellers agent commission. Another reason not to go it alone is that real estate agents have access to real time information on comparable sales in the area. They’ll be able to make sure you’re getting the best deal possible with the most up to date numbers.
Don’t make big comprimises just to try and get in on a good deal.
Sometimes getting a good deal isn’t as good as you think. Over the long term, buying a home that doesn’t meet your list of must-haves can cost you more. If you’re considering buying that home that’s another 30-40 minutes drive time to work to save a few bucks, you might want to think again. The long commutes will take their toll over time adding hours of dreaded windshield time to your week. Time that you could be enjoying with family or friends. Be cautious to do your best to stick to your list of must haves. As markets heat up and inventory shrinks it can be tempting to make comprimises on things that normally could be deal killers.
Making a lowball offer on a home that’s been sitting on the market.
Just because a house has been sitting on the market for a few weeks doesn’t mean it’s an open invitation to make crazy lowball offers. The longer listing period doesn’t necessarily signal that the sellers will be desperate for any offer and take it. If you really like the home, it’s a good idea to not make a move that will lower your credibility in the sellers eyes. Sellers may not entertain your offers if you appear unrealistic.
Insisting on a long list of repairs.
If your home inspection reveals an major issues, of course buyers can ask that the repair be completed before closing. But, don’t assume a seller needs to make cosmetic changes or revamp the property to make a deal work. Asking for unreasonable changes or repairs to a property that is priced appropriately can frustrate sellers. If there are more reasonable offers being made, the sellers will obviously want to work with those.
Losing out on a home or two can be a frustrating experience. In a market like the one we’re in now, you have to be patient and open minded.
One of the best ways to make sure you don’t miss any opportunities is to get your financing figured out ahead of time. A solid pre-approval is key to writing a great offer. If you have any questions about what programs are available to help you achieve your housing goals give Bamboo Mortgage Services a call.