Let’s go ahead and state the obvious- there’s no way you’re buying a new home for a $1. Even the extremely wealthy know how much of a commitment it is plunk down a chunk of change on a luxurious installation. They know the total value of the house is followed immediately by the mortgage, interest rates, and utilities.
If you are lucky to come across a property you love that is well below your price range, consider the finer details first. The last thing you want to take the plunge and belly flop on the shallow end. Is there something you need to know about that property? Are there extra costs involved? To find out, here are some way you can score the best deal on your new home.
Before you start leafing through classified ads, you should get pre-approved for a home purchase. Loan pre-approval is the first step towards understanding what you will owe for the property.
A lender will review your financial information to determine how money you are entitled to. As long as there are no hidden costs to your loan, you’ll be able to set a realistic price range. Try to avoid making big purchases beforehand. Any credit card debt you amass could jeopardize your chances of getting a solid loan.
Buy During Less Busy Seasons
Timing is everything. In regards to the housing market, the right time is always when there are less buyers.
Spring and summer are prime house hunting seasons. You’ll face the most competition from travelling home buyers. Checking late in those months will give you a smaller inventory of available homes. Your likely to net a few listings from desperate sellers during holiday seasons. Some of the properties you’re bound to find could end up being workable.
Find Out Why The House is for Sale
You might find the perfect home at an affordable price, but something’s not right about it. If there’s no such thing as a free lunch, then the same goes for cheap houses.
Make sure the property doesn’t lie in an area known for flooding, landslides, or other hazards. If the seller is in a hurry to get rid of the house, inquire as to why. Ask the realtor for the history behind the property’s sale. Get a second opinion from another realtor to find out what the home is worth.
A Quick Close
The moment the right house appears on the market is when you make your opening bid. The seller might consider this a starting bid, but a specific number could bring both parties closer to a sale.
This strategy is successful when the home has been on the market for months. Shrewd sellers are unimpressed with round numbers. Average the price by square footage and compare the current asking price against homes that recently sold in the same neighborhood. You may end up with an estimate that is a few points below the final price. That alone might impress the seller.