subject: How to Buy Real Estate at the Lowest Price [print this page] How to Buy Real Estate at the Lowest Price
So, you've been out pounding the pavement for weeks now, trying to find your dream home. You've done plenty of research, and you think you are ready to place an offer on the house you have chosen. At this point, your only question is, "how much should I offer?" The fact is that it isn't only about how much you offer, but how you go about offering it that can make the difference.
Reasonable Market Value
Before you even begin to think of any dollar amounts, you need to do some research and gauge the actual market value of the home you are looking at. Your own real estate agent can perform a Comparable Market Analysis on the sale of homes in your selected neighborhood that are similar to the home you are looking into. A typical appraiser will only utilize the previous six months of sales data to find an appropriate appraised value, but that often isn't sufficient. It is much more beneficial to have a larger sample size, to gauge when the property values in the area are rising or falling. This will help you to be sure you are not just finding a great home for your family, but making a wise investment. A reasonable market value will be reached by your agent and you by comparing the current condition, amenities and location of similar houses that have recently sold, as well as analyzing the current listings of any other homes for sale in the immediate area.
Arriving at your Price
At this point, you will need to decide how much you would be willing to offer for the home. If you have decided you want this house so much that you are willing to cough up market value for it, tell your agent that in the beginning. A good agent will attempt to negotiate a sale price that is below market value on your behalf. This is because they want to do well by you, and hopefully gain you as a lifetime client. You have to be completely honest with them upfront, so they know exactly where you stand. How would it make you feel if you lost out on what you feel is your dream home because of a few dollars? If you are willing to pay over asking price, let your agent know that too. If you are hoping to get a great deal, yet have decided you want this home, one way or the other, make it known. The negotiating tactics your agent uses will depend heavily on the information you have given them.
