4 Rules for Finding a Good Deal on a House

4 Rules for Finding a Good Deal on a House

Finding a good deal on a house in a competitive market is hard but it isn’t impossible.  It will take patience and some searching but it can be done, working with a good agent who knows your town can expedite the process.  If you are looking on your own then here are 4 rules for finding a good deal on a house.

  1. Be Prepared to Compromise

If you have a laundry list of features that you want in a home then you must be prepared to compromise, especially in a competitive market.  You may just find a house that has everything you want only it is priced well above what you can afford.  Decide what you can live with and what you can’t live without.  For instance having three bedrooms is a must but an island kitchen is a want.

  1. Don’t Get Emotionally Attached

You found a house that you absolutely adore and you have to have it.  Chances are good that so did the other prospective buyers, houses are staged to appeal to the broadest range of buyers possible.  In a highly competitive market a nice house can trigger a bidding war putting the house out of your price range.  Be prepared to walk away and keep looking.  While those buyers are fighting over that expensive house you can focus on finding a good deal.

  1. The Listing Price is not the Final Price

Real estate agents use pricing strategies to get their clients the best price possible and one of these strategies is to price the house very low.  They want to attract as many buyers as possible and start a bidding war.  It’s highly possible for houses to sell for thousands of dollars over the asking price in a competitive market.  If you see a listing that seems too good to be true then exercise caution.  Here is a look at pricing strategies that realtors use when pricing a house.

  1. Beware of Marketing

If two houses are for sale in the same neighborhood and one of them is getting all of the attention it doesn’t mean it is a better house.  Generally it means they have a more savvy real estate agent who is marketing the house aggressively.  Look for hidden gems, drive around the neighborhoods that you would like to buy in and look for other houses that are for sale as well.  You may find a hidden gem.

Buying a house is a big investment, it isn’t just where you are going to live for the next couple of years it is an investment.  Take your time and try and take the emotion out of the process focus on finding a good deal for you and your family.

Qualities to Look for in a Real Estate Agent

Qualities to Look for in a Real Estate Agent

Your home is the single biggest asset most people will ever own when it comes time for buying it or selling it you need to work with a real estate agent that you can trust.  If you’re buying your first home then you want to get the best price possible and if you’re selling then you also want the best price possible.  If you know the right qualities to look for in a real estate agent then you will find someone with the right skills to help you accomplish your real estate goals.

Integrity

Other skills can be learned but integrity is something different.  Integrity is based on your behaviour and you either have it or you don’t.  With potentially millions of dollars on the line, depending on your market and the transaction, on the line you want someone with a history of honesty.  You need your agent to tell you the truth about your home, the market and not just what you want to hear.  You need a realtor who represents you honestly and doesn’t lie or make false statements.

Loyalty

When it comes to serving the client a licensed real estate agent is obligated to put your interests first.  They have an obligation to protect your interests in regards to any offers and especially when it comes to personal information.  What that means in the real world is that they have to advise you on when the offer is good or bad.  They cannot reveal information about your situation that would affect the offers you receive on your home.  Their job is to market your house so you get the best price possible.

Negotiation Skills

This ties in nicely with the last point as well, real estate transactions are all about negotiations and negotiating is a skill.  They need to be able to listen and not just speak.  They need to convey to potential buyers the benefits that your house holds.  They need to know when and how to counter offer and when to recommend that you accept an offer.

Marketing Skills

You’re selling your house and marketing is absolutely everything.  Your real estate agent needs to know your market and how to get your house in front of potential buyers.  Marketing is more than taking a couple of pictures and listing on MLS, there needs to be everything from a pricing strategy to putting together an open house.