It's understandable normal to want to save money when buying something as large as a home. "You want to buy the best home in the best neighborhood at the best price", as Realty Times puts it. One may easily fall into the idea that the best way to achieve it is to look for a bargain and instead of hiring a real estate agent, you search the market for FSBOs, short sales, foreclosures, or homes that have been on the Internet far too long.
Realty Times has shared five things to always remember when bargain-hunting:
1. Low Balling Sellers Don't Work. Sellers don't want to waste their time on low ballers plus the fact that they find this very insulting since they have purchased the home as investments. The sellers also want a good net because they have taken a financial risk when they purchased that property. As a result the seller may be urged to overprice their home or be unwilling to negotiate. So you should make a reasonable offer and be prepared to compromise.
2. Other Buyers are Getting Professional Help. You may not be the only one interested in that particular property. Soon you may just find out that the homes you're watching are going under contract with other buyers.
3. True Bargains are Rare. "If a home has been on the market for a long time without a price reduction, there's usually a good reason" according to Realty Times. According to the National Association of Realtors, a distressed home can sometimes impact the prices of the other homes because they typically sell at a discount of 17 percent. If sellers are not in distress don't expect them to sell at a discount. Don't waste your time, instead move on to deal that you can actually make.
4. The Home Needs Work. A home marketed "as is," will usually suggests that it needs a lot of work, with this you could be looking at a "money pit". Unless you are willing to do the work or pay someone to do it, don't go for it.
5. It is Not a Bargain if it does Not Suit Your Needs. A home is a big investment so you have to choose wisely. It can only be considered a good buy if it suits your or your family's needs.
