If you are like most homebuyers, you likely want to find the home that suits your needs best, purchased for the best possible price. You want to find the home of your dreams, within your means!
The report, “How Homebuyers Can Save Thousands of Dollars”, found below, can help you achieve both of your goals. Industry analysts have determined a few underlying factors in the home buying experiences of people who bought a home they love for thousands of dollars below the asking price.
Negotiating skills are important, as are 3 money savings steps. Read on to learn about these important tips as well as additional information on how an asking price is set and the ramifications of pricing too high or too low.
HOW HOMEBUYERS CAN SAVE THOUSANDS OF DOLLARS
Most homebuyers have two important goals when house hunting: finding a home that best suits their needs and purchasing this ideal home for the lowest price possible.
If you consider the circumstances under which people purchased the home of their dreams for thousands of dollars below the seller’s asking price, some common approaches are revealed. The ability to negotiate is important, as are 3 additional factors. Read this report prior to submitting an offer to maximize your ability to save thousands of dollars.
Additionally, you will learn four strategies for determining a listing price.
Essential Steps to Saving Thousands of Dollars
- Ensure that you understand what you want.
Though this may seem straightforward, too many buyers do not have a clear idea of what they want before beginning their house hunt. Furthermore, when you are looking at homes, two kinds of homes vie for your attention: the home that meets your desires, and the one that fulfills your needs. Of course, you want a home that meets both your desires and your goals. However, in reality, you may not find a home so ideal.
You might find that you will like different homes for completely different reasons. The differences in the homes that appeal to you will illuminate some important questions. You might find yourself asking which features are more alluring: four bedrooms or a large kitchen? What do you value more, being close to a school or having a large backyard? Despite asking these questions, far too many people purchase a home for the wrong reasons and ultimately regret their purchase when their new home fails to meet their needs.
- Be realistic, and focus on your needs first.
Ideally, you will find a home that satisfies your needs and also meets your desires. However, if you do not find this ideal situation, be sure to find a home that meets your needs, first and foremost. You will be more pleased with your purchase. The challenge is to understand the difference between the two sets of requirements prior to looking at homes. Once you can clarify between your wants and needs, you are less likely to be swayed by a home that is what you desire.
- Your agent can help you find a home based on your criteria.
Your search criteria, whatever these might be, can be cross referenced with available homes as they come onto the market. A real estate agent can ensure that you are looking at appropriate homes and are not distracted by an exciting, but impractical, option.
How an Asking Price is Set by a Seller
To best understand a good price to offer for a home, it is wise to learn how sellers arrive at a certain asking price. Below are four typical strategies that will become familiar once you embark upon your house hunt.
- Definitely Overpriced
Of course, every seller wants to make as much money as possible on the sale of their home. Real estates agents are fully aware of this desire. Often, to win a battle of competing agents, the value of a home will be reported by an agent as an overinflated value. As a result, too often homes are priced 10-20% higher than the actual market value of the home.
Overpricing a home is not in the seller’s best interest because the market cannot be forced to accept the price. Indeed, an overpriced home could sit, unsold, on the market for months. As a result, a seller may face many drawbacks:
- The home might be considered “troubled” by another agent, who then presents an offer on behalf of their client which is actually lower than the fair market value
- The seller faces the inconvenience of repeatedly showing the property with no result
- The listing might expire and to attempt to sell once again, the seller will have to endure the listing process once more
Approximately three quarters of homes available on the market are overpriced by 5-10%. Because they are overpriced, these properties might remain on the market longer than expected, and longer than is deserved. One of two factors typically causes an asking pricing that is too high: the seller believes the home is worth the asking price, though the market disagrees (we cannot forget how emotionally tied we can be to our properties) or the seller may have deemed this strategy promising for negotiation. Regardless of the reason, this strategy could jeopardize the sale of a home and extend the time it spends languishing on the market.
Sellers do sometimes recognize that real estate must conform to the economic laws of supply and demand that rule a capitalist state. Such sellers will price their homes upon conducting an analysis of comparable homes on the market. A home that is then competitively priced will typically be sold near to the asking price and within a reasonable time frame.
Some sellers must sell their homes quickly and so they price their property below the fair market value. A home that is underpriced can attract numerous offers and produce a quick sale, sometimes even within a few days and sometimes even at a price above the asking price. Though this method can produce a quick sale, be wary of an agent who recommends this method. Be sure that he or she has prioritized your best interests.
Please feel free to contact me so we can discuss how to save you thousands when you buy your home. It would be my pleasure to answer any questions you might have about the content relayed in this report.