Ensure you don’t overpay for your home with these tips for getting the best price possible.
One thing’s in common for all home buyers: everyone wants to get the best price possible. Getting ripped off is not fun, even if you plan on spending a few extra bucks so the house is entirely up to your standards.
No matter the condition of the housing market, it’s important that you pay fair price. But how can you know whether you’re getting a good deal or not? Here are eight tips on getting the best price possible on a Milwaukee home!
1. Look at Recently Sold Properties
Try looking at comparable properties in the area. This includes all houses with similar sizes, conditions, and amenities. They all should have more or less the same price. If there aren’t comparable houses, the property you’re looking at should be more expensive than smaller houses, but less expensive than larger ones.
2. Do Research on Market Condition
Have the selling prices gone up or down in the latest months? The real estate market isn’t static, but rather fluid. In a seller’s market, it’s normal for properties to be somewhat overpriced, while the opposite happens in the buyer’s market. Mortgage interest rates also affect this, as well as the job market.
3. Don’t Compare with FSBO Properties
For sale by owner (FSBO) properties tend to be discounted because there’s no need for the seller to pay the seller’s agent commission. Also, people who list houses on their own might not have a good idea of how to value their property accordingly. They might not be adequate for comparison, as they aren’t representing the best price of that property.
4. Be Wary of Appreciation
The future prospects for the area you’ve chosen might impact the price. For example, positive development can increase the home price. The same goes for new road plans or future schools. However, if the stores are closing down, this will lower the home price, as the area is losing its value.
5. Consult with a Professional
Another way for you to get the best price is to consult with a professional, such as your real estate agent or a reliable real estate investor, such as Sparks Property Investors LLC. These people have to know the condition of the market and average prices, so they might be able to point you in the right direction.
6. Does the Price Feel Fair to You?
If you’re not satisfied with the property, the price will likely never feel fair, even if you negotiate for the lower price. However, if you truly love the home, chances are you won’t mind paying a few extra bucks for it.
7. Try to Negotiate
Some people list properties at a higher price because they expect you to negotiate. It’s not a shame to try to bargain for the lower price. Some sellers even want to start a bidding war, trying to see for what price they can sell their old home. When it comes to getting the best price possible, you should always test the waters and see all your options. This is the only way you might end with a fair deal.
8. Get an Inspection and an Appraisal
Once you’re under contract, the lender will get an appraisal of the property to confirm the lending amount. This is the best way to ensure you’re buying at the best price possible. In fact, if the appraisal comes with a much lower price, you might not even get your loan. Similarly, an inspection of the house can help you get the best price, as it will inform you if anything is wrong with the property.