How's the bargain hunt going?
Buying a home may be the biggest purchase you ever make. It’s natural to want to try different ways to save some money. You want the best house, in the best neighborhood, at the best price. If you’re bargain hunting, scouring the internet for FSBOs and running the miles on your car , consider a few things:
Low balling doesn’t work. Put yourself in the shoes of a seller. They bought their home with the hope that it will appreciate in value over time, the same hope you have now. They want to net as much as possible, just as you hope to. They took financial risk, just as you will. There’s an art to submitting an offer–you want a seller to know you’re serious, well informed and viable. A low ball offer based on nothing is likely to insult a seller. Keep in mind what they need, and know what you need. Be open to comprise.
If you’re putting wear on your tires, driving neighborhoods and calling sellers when they aren’t home, because you think negotiating out of commissions will help you get a bargain, you aren’t in the game. Ninety-five percent of homebuyers are working with a real estate professional. You’ll notice that homes you’re watching are going under contract with other buyers. Get the help you need and deserve.
Sometimes a distressed home will impact the perceived prices of other homes. These homes are typically discounted about 17 percent. If the home you’re looking at isn’t in distress, don’t expect to negotiate as if it is. Be realistic of what you’re looking at.
If a home has been on the market for a long time, without a price reduction, there’s probably a reason. You’re dealing with an unmotivated, unrealistic, or upside-down seller who will waste your time with no result of a purchased home. Move on to a deal that will be worth your time.
You may come across a home marked “as is” during your search for the ultimate bargain. You could be looking at a money pit. Execute your due diligence. Get a home inspection and then get bids from contractors who can help you bring the home up to date. If the purchase price and repairs come to approximately the same price as an updated home in the same area, then go for it.