If you love something and cannot live without it, the price may not matter to you. But no one likes the feeling of buyers remorse. Especially after such a large purchase as buying a home. A good way to avoid buyers remorse it to avoid overpaying. Getting a good price on a home also means that you can move on and sell in a few years if it turns out not to be a good fit.
8 Tips to Avoid Overpaying for Your Home
1. Work with an agent – A buyer agent is an expert in home prices in your local area. Make sure you choose a buyer agent that does a lot of work in your immediate area. Working with a local buyer agent doesn’t cost you anything as a buyer, their commission is paid by the seller and their advice is invaluable.
2. Look at the comps – In real estate comps are other houses in your area with similar specifications that have sold recently. Looking at comparable sales will give you an idea of a fair price for the home you are interested in. Comps are an important tool in real estate buying but there are other things to consider as well.
3. Ask around and investigate – Talking to neighbors and locals in the area where you are buying a home is a great tool to determine value. Talking to city hall, the police department, school staff and neighbors can give great insight on the town. An area with a strong community and services will often have a better resale value.
4. Make sure your purchase includes an appraisal – When you make an offer on a house it will usually includes an appraisal contingency. This is a requirement by lenders but it is also a very valuable tool for buyers. If the appraisal comes in below the sale price you will have to consider if you still want to buy the home and it may make it harder to get loan approval depending on the down payment you have.
5. Avoid a bidding war – If you are concerned about overpaying for a home make sure that you don’t get caught up in a bidding war. A bidding war can drive up the price on a home. It’s often worth it if you’re trying to buy the home of your dreams but in many cases walking away is a smarter choice.
6. Shop in the off season – Spring is well known as the hottest season in real estate. Buying a home after the spring market has died down or during the winter months can allow you to get a better deal on a property.
7. Compare mortgage lenders – Comparing mortgage lenders is an important step in the real estate buying process. Some people only talk to one lender. Your mortgage is a place where you can cut down the amount you pay for the house over the life of the loan so it’s important to shop rates and closing costs between at least two lenders. Looking at a bank loan as well as a mortgage lender like Title Mortgage Solution will give you a good idea of what your options are.
8. Be realistic about what ‘fair price’ means to you – A fair price for a home is what you are comfortable paying for a home that you love. Settling for a less expensive house that you don’t like as much because it’s a good deal isn’t always the smartest decision. Price is relative to the value the property holds for you. Focus on that and you will make a good real estate decision.
At Title Mortgage Solution we strongly encourage buyers to do their research when it comes to lenders. Even if you pay a little more for a house you love, we might be able to help you save with a competitive interest rate and loan terms. Apply today!