“When you analyze those successful home buyers who have the experience to purchase the home they want for thousands of dollars below a seller’s asking price, some common denominators emerge.”
If you’re like most home buyers, you have two primary considerations in mind when you start looking for a home. First, you want to find a home that perfectly meets your needs and desires, and secondly, you want to purchase this home for the lowest possible price.
When you analyze those successful homebuyers who have been able to purchase the home they want for thousands of dollars below a seller’s asking price, some common denominators emerge. Although your agents negotiating skills are important, there are three additional key factors that must come into play long before you ever submit an offer.
SMART WAYS TO BUY YOUR NEW HOME
“Learn from the experience of successful homebuyers and get tips on how they were able to bargain and save money when they bought their dream home.”
Home buyers have two primary considerations when choosing and buying a new home. The first one is the price; all of us want value for our money to get the most out of every penny we spend. The second is the home should meet our needs and wants in a home.
Successful homebuyers are those who were able to get both…their dream home for less than its selling price. If we look closely at these successful homebuyers we can see that the true secret to their success did not only depend on their agent, but also because they did these three simple things that most other home buyers overlook. These three simple steps are outlined below.
Three things that will help you save a HUGE AMOUNT OF MONEY.
Make sure you know what you want. A simple maxim when buying anything is that “if you
don’t know what you want, how can you find what you truly need?” The first order of business
when you’ve decided that you want to buy a new house is to first know what are your criteria is
for choosing a new home.
Sometimes when you’re shopping for a new house, you find yourself liking two houses for
completely different reasons. One meets your needs while another meets your wants. We should target a home that meets both. But in reality, this does not always happen.
Perhaps you can’t decide if you’d rather go for the 3-bedroom house or the house with a large eat-in kitchen for those big Sunday family brunches. What about a large backyard versus a house that’s just 5-10 min away from your kid’s school? If you don’t know what you’re looking for in a new house you might end up buying the wrong one. No one wants to spend a lot of money on a new house only to regret it in the end.
Don’t Shop with stars in your eyes: The first and foremost thing to consider is that the house you’re considering meets all your needs. If you have a large family and you earn
a modest income then you should look for a house that provides a lot of space but does not come with a heavy price tag. Be optimistic but also realistic when it comes to financial considerations.
Find out if your agent offers a “Buyer Profile System” or “House-hunting Service,” this takes a load of your shoulders when it comes to figuring out how to match a house with your specific needs and wants. What this program does is it will search ALL homes listed for sale on the market and short list the ones that matches the criteria you specified for your new house. The list is updated as new homes are listed and others are sold. This will save you a lot of time sorting through hundreds of homes.
We can help you look for your next house, just fill out this form:
My new home NEEDS to have the following:
It would be WONDERFUL if my new home has the following:
How Sellers Set Their Asking Price
When it comes to figuring out how much to offer for a new home, you have to first consider how home sellers set the price for their house. Listed below are the most common strategies they use to set the price for their homes.
1. Clearly Overpriced:
Almost all sellers want to get the most money out of the sale of their house. Real estate agents are aware of this mentality and if you have more than one agent vying for the same house, this could start a bidding war for a seller’s home. So to assure they walk away with a lot of cash in their pockets most homes are overpriced as much as 10-20% over their real market value.
In the long run this strategy may not work out to your advantage. The outcome is that your house might be listed for sale in the market for a while, the result of which could be one or both of these drawbacks:
• Real estate agents might tag your home as a “troubled” house. This will lead to a lower than average share of the market price when a final offer is proposed for your home.
• Another problem could be that you might find yourself spending a lot of time keeping your house in “showing” condition to make it appealing to potential buyers. This could be a big problem when you get a lot of “we’ll think about it” answer from these buyers. If your home expires off the market, this might force you to start the listing process from the start again.
2. Somewhat Overpriced:
A quarter of the houses listed in the market are 5-10% overpriced. Some of these houses might stay in the market for longer periods than they really should. It’s understandable why home sellers prefer to use this tactic. After all when you put a house you’ve lived in for a while for sale,it’s difficult to think objectively, you don’t want something that carries a lot of emotional weight to be undervalued. Perhaps you’re leaving some space for negotiations since most buyers will ask for a lower price. Whatever the reason, if you’re not smart about this crucial part of the selling process it might end up costing you in terms of time and even the final price offered.
3. Priced Correctly at Market Value
Other home sellers know that the price of a house is affected by the law of supply and demand. Thus they will offer a price based on the actual MARKET VALUE of their home. When sellers make a careful analysis of their house compared to other houses with the same value, they can come up with a competitive price matrix for their home. Successfully justifying the price can help convince a potential buyer to buy your house, and not the previous one he visited.
4. Priced Below the Fair Market Value
A good strategy to use when you want to make a quick sale is to offer the house below its actual market value. There is a good chance this will get a lot of offers and sell faster. If executed correctly you might even close a sale above the asking price of the house. The goal is to start a bidding war among home buyers and get more offers. Just make sure that the real estate agent that suggested this method has your best interest in mind.