How to Get the Best Deal on a Home
Your house is probably the most expensive purchase that you will ever make. However, you can still shop around for deals and do your research to make sure you get the best possible price.
Know Other Prices
Before you make an offer on the house, see what else is on the market in the area. If the house you want is listed at $400,000, but other houses of the same style, upkeep, size and acreage in the area are closer to $300,000, you've just found a negotiation tool. You can also check to see what homes recently sold for, so that you have some real life statistics from which to work.
Appraisals and Inspections
Another tool to use for bargaining is to order an appraisal of the house. By doing so, you won't have to only compare the value of your potential home to other homes in the area. You'll actually be receiving a sold estimate from a professional for what the home is worth. You'll also want to have a home inspection done, as this can help in reducing the cost as well. For example, let's say that the inspector finds termite damage. You can use this as a point of negotiation. Since you'll eventually have to pay to keep the termites at bay, ask if the sellers will consider lowering the price.
Shop Around
While the cost is significantly impacted by the asking price, your monthly payments will be affected by the type of mortgage that you have. Make sure you shop around for mortgages instead of just going for the first one that you see. Different lenders have varying interest rates available. Many mortgages carry a life of 30 years on them, so the interest is really going to add up over that time span. After you buy the house, keep the concept of refinancing in your mind so that you can possibly go for a lower interest rate later on down the road.
Making Offers
Only you know exactly how much you're willing to spend on the home and how high of an offer you're willing to make. In most cases, it is often recommended that you make an offer for a price that is lower than the asking price. Remember, the seller is not going to want to lose money on the price that he or she paid for the home. However, it's also important to keep another fact in mind: The seller is most likely expecting that you will offer less than the asking price. Therefore, it is acceptable-and not a surprise at all-that you will place a bid that is lower than the stated amount.
You don't want to get swindled when you purchase your home, or you might always have bad memories of it. Be sure to consult with a real estate agent and real estate lawyer along the way to make sure that you're doing all that you need to. Following some advice will help you to secure the best deal possible on the house of your dreams.
Author Bio: Rob Alley earned a bachelors degree at Virginia Tech, in Blacksburg, VA in Biology. Rob Alley consults with homeowners regarding Real Estate transactions and speciliazes in listing and selling Central Virginia Real Estate covering the areas of Lynchburg, Charlottesville, Staunton and Louisa. Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
Charlottesville Real Estate Experts
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