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Buying a home is an exciting and complex adventure. It can also be a very time-consuming and costly one if you're not familiar with all aspects of the process, and don't have all the best information and resources at hand.
Here's the question I hear all the time...Can you help me find a deal? The easy answer is "Of course I can". But...the real answer is, "It depends". My question to the potential buyer is "What is a deal to you?".
Everyone is looking for a deal, and everyone has a different perception of a deal. What you want to pay isn't usually realistic compared to the amount of money that will buy the house.
To get an idea of market value, which is the price the house should sell for, you need to gather comparable sales data. The easiest way to do that is a Comparable Market Analysis done by a REALTOR or Broker. The difficulty with a CMA is the number of foreclosures, short sales, and motivated sellers in this market. Appraisals are being scrutinized more than ever and being questioned by lenders to make sure they are accurate.
To get an accurate market value, we try to find 3-5 similar properties in the same neighborhood. If we break it down to the price per square foot we can make a good comparison to come up with a price expection. There's no way on earth we can sell anything for more than
its worth, and sellers, banks and the market in general keep prices in line, with a few exceptions of course.
Back to the original question...what's a deal? Does the list price matter? Not really. If you have a good buyers agent they will take you through the process of finding reasonable comparable properties and tell you what you should pay. Listing agents know this, but sellers don't always understand it, so they insist on a higher price. If you need to feel like you're getting a deal by paying a lot less than list price you should be looking at overpriced properties, make a lot of offers, and you'll be more satisfied when you get a deal. You'll probably have to settle for the features you end up with, rather than having a list of features and paying the price for getting what you want.
If you're looking for a huge discount you'll have to find motivated seller first, then make A LOT of offers, settle for the deal with very few features in your criteria.
You must balance the features, location and other details you want with getting the deal you're looking for.
Banks are usually the higher authority in this market, with short sales being so common. Banks order Broker Price Opinions or Appraisals to educate themselves on what they should sell properties for in their current condition. This is a grueling and time consuming process. If you're in a hurry stay away from short sales.
You're always welcome to contact me with questions, concerns, or anything at all. |
