If there is one thing all homebuyers have in common: they don’t want to get ripped off. So question is, how do you know that you’re getting a fair deal before you make an offer?
- Compare Properties on Market
You can do home visits so you can get a true sense of their size, condition, location and other things you’re considering. You can also do this online if you don’t have the time to drive to different locations.
2. Recently Sold Properties
A comparable property is one that is almost similar in size, year built, condition and in the same neighborhood. You can gain valuable information by looking at how the property you’re interested in compares in price to these other properties. This process is also known as “comps”.
3. Choose your Realtor Carefully
People buy homes without a realtor all the time but for first time buyers, it makes a lot of sense in hiring a professional to guide you through the entire process. Many buyers decide on their choice of realtor by asking friends and family for recommendations, some check them online but no matter how you find potential realtors, it is important that you ask for references and feedback from past clients.
4. Set a budget and stick to it
Buying a house, especially for first timers is quite exciting and there is a natural and acceptable temptation to buy the biggest or most glamorous house you can find. But if you have a budget, try your best to stick to it because there is more than just the mortgage price you need to consider when buying a home.
5. Test the Waters
It is still possible to make an offer below list price even in a seller’s market. You can never tell when a seller is listing a property for the lowest price they’re willing to take or higher than they expect to earn. So it’s still best to try and check how the seller reacts.
6. Hire a Professional Inspector for an Appraisal
After you made an offer on the house and it has been accepted by the seller, the next step is to get the house inspected for possible repairs and it will tell you if you need to ask the seller for a discount as well.