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Top 5 Bargain-Hunting Tips

When your buying a new home of course you want to get the best deal.  So it’s natural to start thinking about where to cut and how to make a new plan of attack for that steal to become yours.  You may consider saving by not hiring an agent, scouring the market for FSBO’s or short sales, foreclosures and homes that are on the market way to long.  Before you start wasting all your time, there are several factors you need to consider to avoid the bargain-hunting backfire.

Hire An Agent

This might sound like a great way to save money.  To be blunt, it’s not.  The seller pays the buyer’s agent, so you are not saving anything (in the case there is not a buyer’s agent the listing agent gets to keep both shares in most cases.)  Not only are you not actually saving money, you are losing a great asset.  The agent is your key negotiator and knows the market, as well as where all the deals are.  When your looking for a value, your agent becomes invaluable.

True Bargains Are Hard To Find

Distressed homes will impact prices of other homes in the neighborhood because they typically sell at a discount of 17%.  While the prices may be dropped, do not expect them to sell as if they were.   On the other side, if a home has been on the market for a long time without a price reduction it’s an indication of a problem.  While the problem is typically not with the house you will probably find an unmotivated or unrealistic seller.  This will typically result in a long negotiation process that will probably not lead to bargain.  It’s important to remember that a bank foreclosure or bank-approved short sale could take months to close.

Bargain Homes Will Need Work

You may not be ready to buy “the money pit,” but that’s where a lot of the bargains are.  Sometimes a home will be marketed “as is,” which suggests that it needs a lot of work. Or, a home may be well maintained, but it’s so out of date it looks like a vintage sit-com set.  Be sure you get a home inspection and bids from contractors to know the true cost of what your buying.

Low-Ball Offers Will Not Cut it

Sellers don’t even waste their time with low-ball offers that they find insulting.  When you sell, you want the value to appreciate.  The seller does too.  They invested in the property and are looking to net as much as possible.  This sense of entitlement — that homes should only be sold at a profit – may cause them to overprice their homes or be less willing to negotiate. You’ll feel the same way when it comes time for you to sell your home, so make your offer reasonably and respectfully. Be open to compromise.

It’s Not A Bargain If You Can’t Live There

If the home doesn’t suit your family’s spacial needs or comfort than it’s not worth spending any money on it.  It takes time to build equity, so staying in a home for a short time and trying to sell right away will result in a monetary loss for your family.  It’s better to just wait for the bargain that fits your family than to try to fit into a house that doesn’t work.  Your home should meet your needs for a long time.

It’s important to remember that like all bargain hunting, it takes a while to find the diamond in the rough.  It takes a lot of searching, researching and negotiations.  Be sure you have an expert on your side to make it easier.  For more tips and assistance, call Helen today at 847.967.0022 or email helen@helenoliveri.com.

 

 

 

 

Helen OliveriTop 5 Bargain-Hunting Tips