To Get The Best Deal Possible
When it comes to house marketing news, the media can sometimes give consumers confusing, conflicting information. Even though interest rates are at an all time low, potential Morris County homebuyers are having a hard time getting approved for a loan.
If you are in the market for a new home, below are a few tips to keep the information understandable so that you know what is fair in today’s market so you can get the best price.
Understand the “Comps” – Comps are comparable properties, homes that are similar in size, age and geographic location. Comps will drive appraisals and pricing, so knowing a neighborhood’s comps before you start to negotiate give you an advantage. You should also compare the comps for similar houses that are for sale, have recently sold and what hasn’t sold. If the home you have your eye on is similar to a large number of similar properties, then you may be able to get a better price if the seller wants to move quickly in a saturated market.
Understand the Market Conditions in Your Area – Don’t let national headlines determine what you understand about your particular area. You may live in a city that is thriving the area’s overall economic success will also drive home prices and value. New developments in retail or other business in the area may also be an indicator that the community is growing and will appreciate in overall value.
Don’t Forgo the FSBO – A FSBO is just a for sale by owner property and can save you 6% and up in seller’s commissions. FSBO’s can offer great deals, but make sure to check comps carefully, as individual sellers may be prone to set prices higher than fair market.
Listen to Your Realtor – Your realtor should have the experience to help you assess the deal and also has information at his or her fingertips that can help you establish the value of a home. Use your realtor to help you negotiate – you should always offer below list and gauge the seller’s willingness to negotiate by the response to the first written offer. Also, don’t be afraid to put your offer in writing – experienced sellers may not take a verbal offer seriously.
Get an Appraised Value and a Home Inspection-Your lender will require an official appraisal before finalizing the loan application. You may want to reconsider if your appraisal is less than the sale price. Your lender may not approve the purchase if there is a huge difference between the sale price and the appraised value. If the inspection shows that there is great need for repairs, you may have an opportunity to get the price lowered on the house.