A common theme among home buyers today is the need to find a “deal” when buying a home. Almost every home buyer brings that up during our initial conversation. That desire is more apparent now than ever. That has to do with all of the pain in the current real estate market. There is pent up home buyer demand because many of them are afraid of buying today and having it worth less in the near future. Essentially, most or all home buyers are trying to buy at the bottom of the real estate market. Here are 5 tips to help you find a good value when making a home purchase in cash:
1) Realism – Everyone wants to steal a home but it does not happen as much as you think. I watch the real estate market every day, all day and see only a few a year. However, I do see good value purchased frequently. If you are looking for hard up seller to sell their for $500,000 for $400,000 then you will probably never buy. The real estate market is pretty efficient as all information is easily obtainable. However, you can expect to maybe buy that $500,000 home for $480,000.
2) Hire Good Help – Find a good realtor. It will not cost you anything as most real estate agents are paid by the seller. A home purchase will probably be your largest transaction ever. It is good to have smart and experienced people helping you out. A good real estate agent like I buy houses, all cash offer will help you get educated on the real estate market by sending you what homes are for sale, what has sold and what homes have expired or failed to sell.
3) Know the market – How are you going to know what a good deal is if you don’t know the real estate market? Before you can realize a great deal you need to know what things are selling for in your area. Have your Realtor send you what has recently sold in the area and neighborhoods that interest you. Become an expert in your neighborhoods. When something great comes on the market you will know it is great.
4) Preparation is needed – Get all of your ducks in a row ahead of time. You don’t want to find a deal and then lose it because you are not prepared. For example, get your financing or cash arranged. Lending guidelines have changed so get pre-approved for a mortgage. Waiting to do this until after you find a good value might cause you to lose it. Ready – aim – fire, not fire – ready – aim.
5) Be quick – If you are prepared, have good Realtor representation, know the real estate market well and a good deal comes up don’t be afraid to act quickly. Good deals don’t last long because the market is saturated with buyers looking for values. If you delay and procrastinate then you will miss out. It happens all of the time to buyers.
Become educated on the real estate market, hire good help, prepare, accept market realities and act swiftly and you stand a strong chance of buying at a great price.
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