It’s very important that you know the difference between avoiding an impulse buy and jumping on a great deal. Knowing the difference could save you thousands of dollars in the end.
I found some great tips from Investopedia that will help guide you through the appropriate steps to take when looking to buy a home in this down market.
- Do Your Homework
Search the internet and local newspapers for listings. Inquire with a real estate
agent to help you narrow down your options. Your main goal is to get to know
the price range for the area you are looking to live in. Get a sense of what a
“low price” is for that neighborhood.
- Get Your Ducks in a Row
Make sure to get pre-approved for a mortgage before you even start the house hunt.
There’s no sense in falling in love with a property you can’t afford or
settling for something you THINK is all you can afford when really you can get
approved for more.
- Watch for Motivated Sellers
If the home has been on the market for awhile, chances are the seller is going to
want to get rid of the house as soon as possible. Upon finding a property in
this situation, ask the seller to cover closing costs or make some upgrades.
Never be afraid to offer lower than the listing price either.
- Negotiate with a Realtor
Be sure to ask your real estate agent to reduce the cost of the home. While houses
are selling at a slow pace, many realtors are struggling. Both agents and firms
may be more inclined to knock a percentage or two off their commission to close
- Make Sure you have a Clear Title
To avoid inheriting any liabilities, have a title insurance company perform a
title search to make sure there are no liens on the property and that it can be
- Avoid a Bidding War
Do not let your emotions get the best of you. We are in a down market, which is
all about getting a good deal, so if you are in a bidding war, set a price
limit and stick to it. There are plenty of homes out there!
- Don’t be Afraid to Walk Away
There are always many choices in a down market so keep that in mind. If you are not
getting the deal you feel you deserve, do not be afraid to walk away and look
at other homes out there.
I hope these tips help you in your home buying process! If you have any questions or are looking for advice, please feel free to contact me directly and I would be more than happy to help you!