Thinking about how to get a fair price on a home? We’ll help by discussing few tips that will surely help you through the way.
Below are 3 tips for getting a fair price on a home:
Research Recently Sold, Comparable Properties
In this case, you can actually visit other homes and get a true sense of how their size, condition and amenities compare to the property you’re considering buying. Then you can compare prices and see what seems fair. Reasonable sellers know that they must price their properties similarly to market comparable if they want to be competitive. Source: Forbes
Consider Market Conditions and Appreciation Rates in the Area
Have prices been going up recently or going down? In a seller’s market, properties will probably be somewhat overpriced, and in a buyer’s market, properties are apt to be underpriced. It all depends on where the market currently sits on the real estate boom-and-bust curve. Even in a seller’s market, properties may not be overpriced if the market is on the upswing and not near its peak. Conversely, properties can be overpriced even in a buyer’s market if prices have only recently begun to decline. Of course, it can be difficult to see the peaks and valleys until they’re history. Also consider the impact of mortgage interest rates and the job market on the economy. (Knowing your mortgage choices is important. Source: Investopedia
Get an Appraised Value and a Home Inspection
Once you’re under contract, the lender will have an appraisal of the property done (usually at your expense) to protect its financial interests. The lender wants to make sure that if you stop making your mortgage payments, it’ll be able to get a reasonable amount of its money back when it forecloses on your home. If the appraisal comes in at considerably less than your offering price, you may not be getting a fair deal. In fact, the lender may not even let you purchase the home unless the seller is willing to bring the price down. A home inspection, which is completed after you’re under contract, will also give you a way to gauge your offering price. If the home needs many expensive repairs, you’ll want to ask the seller to make the repairs for you or discount the purchase price so you can make them yourself. Source: Number1agentsusa
The best way to get a good price on a home is to hire an experienced realtor who will help you through the process. If you want to know more about selling your home, please give us a call or contact us here.