When you are a house buyer, having the right information on the buying trade on your side can make a world of difference between a home you love and one you can’t wait to get rid of.
Learning the ins and outs of this cutthroat industry is a powerful weapon when it comes to buying the perfect home. In fact, it’s often what house buyers don’t think to learn about the industry that can make or break a deal. From how to win a bidding war to whether those renovations are a wise investment, these house buyers’ secrets are sure to shock even the most intrepid house buyers.
Buying Secret # 6: Bigger Isn’t Always Better
House buyers are drawn to the biggest, most beautiful house on the block. But bigger is most of the time not better when it comes to houses. There’s an old adage in real estate that says don’t buy the biggest, best house on the block. The biggest house only appeals to a lesser audience and you never want to limit potential house buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you.
If you pay $500,000 for a home and your neighbors pay $250,000 to $300,000, your appreciation might get limited. Sometimes it is best to buy the worst house on the block, for the worst house per square foot always trades for more than the larger house.
Buying Secret #5: Avoid Sleeper Costs
The difference between renting and owning is the sleeper costs. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities and homeowner-association dues.
Brandnew owners also need to be ready to pay for repairs, maintenance and possible property-tax increases. Make sure you budget for sleeper costs so you’ll be covered and won’t risk losing the house.
Buying Secret #4: You’re Buying a House – Not Dating It
Buying a house based on emotions is just going to break your heart. when you fall in love with something, you might just end up making pretty bad financial decisions. There’s a big difference between your emotions and your instincts. Going with your instincts means that you knowing that you’re getting a great house for a good value.
Going with your emotions is being obsessed with the paint color or the kitchen. It’s an investment, so stay firm and be wise.
Buying Secret #3: Give Your House a Physical
Would you buy a car without checking under the hood? Of course not. get a home inspector. It’ll cost you around $200 but could end up saving you thousands. A home inspector’s responsibility is to provide you with insights so that you can make a decision as to whether or not to buy.
It’s the best way to get an unbiased third-party opinion. If the inspector does find any issues with the home, you can use it as a bargaining tool for deducting the price of the home. It’s better to spend the money upfront on an inspector than to find out later you have to spend a fortune.
Buying Secret #2: The Secret Science of Bidding
Your initial bid should be based on two things: what you can afford (because you don’t want to outbid yourself), and what you really believe the house is worth. Make your initial bid something that’s fair and unbias and isn’t going to offend the seller.
A lot of individuals think they should go lower the first time they make a bid. It all depends on what the market is doing at the time. You need to check what other homes have gone for in that neighborhood and you want to get an average price per square foot. Sizing up a house on a price-per-square-foot basis is a great edge.
Also, see if the neighbors have plans to put up a new addition or a basketball court or tennis court, anything that might detract from the property’s value down the road.
Today, so many sellers are behind in their property taxes and if you have that valuable information it gives you the potential to negotiate a great deal. To get information about it, go to the county clerk’s office.
Sellers respect a bid that is an oddball number and is more often to take it more seriously. A nice round number sounds like every other bid out there. When you get more specific the sellers will think you’ve given the offer rightful thought.
Buying Secret #1: Stalk the Neighborhood
Before you purchase, get the lay of the land – drop by morning noon and night. Many homebuyers have become completely dissatisfied because they thought they got the perfect home, just to find out the neighborhood wasn’t for them.
Drive by the house at all hours of the day to see what’s going on in the neighborhood. Do your regular travel from the house to make sure it is something you can deal with every day. Find out how far it is to the nearest grocery store and other needs.
Even if you don’t have kids, research the schools because it contributes to the value of your home in a very big way. If you buy a house in a good school district versus bad school district even in the same town, the value can be affected as much as 20 per cent.