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.
- 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.
- 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.
- 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.
- 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.