When planning to buy something, a natural tendency would be to look for low - priced items that will allow you to save money, especially for big purchases like a house. Instead of tapping the services of a real estate agent, some buyers do their own search in the market for homes that have long been advertised on the internet, short sales, foreclosures or For Sale by Owner (FSBOs). But bargain hunting does not always guarantee a best buy and may later on bring negative results. Here are some ways by which your choice for a cheaper house can backfire on you.
1. Low-ball offers don't work
The seller of the house you intend to buy will not waste time on offers that are insulting. Just as you would like your home to appreciate in value over time, so do the other sellers since they took a financial risk on the property and purchased it as an investment. Make a respectful and reasonable offer and be open for a compromise. You will feel the same way when the time comes for you to sell that house in the future.
2. You will end up spending more and saving less..or none at all.
About ninety percent of buyers get professional service from real estate agents. You wanted to save on your cost by skipping this process, but you will soon find yourself driving around or calling FSBO sellers who may not be always at home to answer your call. Before you know it, the property that you are watching has already been contracted to another buyer.
A home that is offered "as is "may suggest that it needs a lot of work, or may be well-kept but so outdated like a vintage home in a sit-com. If the purchase price and repairs are more or less the same as when you buy an updated home, then get on with the deal. If not, you might actually be ending up with a money pit.
3. True bargains are scarce
If a house has been listed for quite a long time without a price reduction, then there must be a good reason for it. Aside from houses that need major repair or updating , those that are offered for a low price are either located in remote or less desirable location, away from main tourist spots, agricultural lands that are of poor quality and values or where recession has hit the hardest.
4. It is not a bargain if it does not meet your needs.
You will only be able to consider your purchase a good buy if it provides your family's need for comfort, function, features and space. If it does not, you might end up selling that house to buy a more suitable abode for you and your loved ones.
