It is now a common practice to see people buying houses, rather than building them. However, there is a sad trend gaining ground in the real estate industry — people often spend a lot than required in the process of buying a house. The reasons for this are so many. At times, it is due to lack of knowledge of the buyer; in some cases, it is due to simple mistakes made by the buyer, etc. This trend continues to gain ground, and it seems no one cares, or people have not been taken the right steps against the issue. One of the ways I feel I can help the situation is by providing useful tips on how to save money when buying a home.
- Research Recently Sold, Comparable Properties
Common among first-time buyers is a situation where they have no idea of how much to offer for a house. They often try to avoid under-pricing a house, and at the end of the day they end up overpaying. This also happens to a lot of multiple times buyers. When trying to buy a house, the first thing a buyer has to do is to have a good idea of how much a targeted house costs. If you do not have a good idea, I strongly recommend that you do not proceed with the transaction. Until you have an idea of what to offer, keep researching a fair price to pay for the house.
So how do you know a good price to offer a seller?
There are many ways to come up with an appropriate price to put down for a house. However, one of them which is also one of the best is, researching recently sold houses which are comparable. Look for recently sold houses which are comparable, and find how much they were sold for. When you come up some, you will definitely begin to develop a sense of how much is worth offering for the house you wish to buy. The more you are able to research deeply, the more you are helping yourself. It is also worthwhile to note that, it is a very bad idea to rush this exercise. Take as much of your time as you can.
- Look At Comparable That Were On The Market Recently, But Didn’t Sell
This second tip is related to the first, as it is also about having an idea of how much is worth offering for a house. The first tip, ‘Research Recently Sold, Comparable Properties,’ will help you develop an idea of how much should be paid. However, that is not all; you also need to know how much will be excessive to offer for a house. Knowing how much will be excessive, will help serve as a peg you should not cross. Having a peg can also go a long way to save you from overpaying.
Fortunately, knowing how much will be excessive is not as difficult as you would think. All you have to do is to look at comparables that were on the market recently but didn’t sell. When you take a look at the price tags of such houses, you will come to develop a sense of how much people feel too much for such houses.
- Strip Off Emotions
It is a good thing to have specifications and features for a house you wish to buy. However, a lot of people often make the mistake of developing emotions for houses that meet up with their expectations. When you come across a house that meets up, it is very important that you remind yourself of the fact that you may end up not buying the house as its price may not be okay. Thus, a strip of emotions in the process of buying a house.