Working to Get a Good Deal on a Home Purchase

Is This Your Situation: Working to Get a Good Deal on a Home Purchase? Homebuyers want to shave off as much money from the sale price as possible, and home sellers want to squeeze every last dollar they can out of the deal. So how do you know whether you’re getting a good deal on a home in today’s market? Here are 6 factors you must consider to help you get a great deal on your new home.
Working to Get a Good Deal on a Home Purchase
Start with a CMA

CMA, which stands for Comparative Market Analysis, is your first step in determining whether or not you’re getting a good deal on a home. Take a look at homes similar to the one you’re interested in to get a sense for how much the one you are considering buying is worth. Make sure that the homes you look at are in the same neighborhood as the one you’re interested in and are in similar condition. Don’t compare it against a foreclosed home if the one you’re interested in isn’t in foreclosure (and vice versa).

If the home you’re after is priced at or below the market value of comparable homes, then you’re most likely getting a good deal. If it’s above that, then it’s not as much of a steal.

Is the seller throwing in any “extras”?

A good deal on a home comes in lots of shapes and sizes. See what the seller is willing to offer to sweeten the deal. If the seller has agreed to help pay for some or all of the closing costs, that should be factored into whether you’re getting a good deal. Are they offering an allowance to pay for repairs and/or upgrades to the home? That could save you money in renovation costs, if any are needed.

Do the math: What’s the LP to SP ratio?

Have your real estate agent help you calculate the LP:SP, which simply means the ratio between the listing price and the sale price. If you’re getting a good deal, the ratio will be more than one, meaning that you are purchasing the home for less than its listing price. However, if the ratio is less than one, try to negotiate a better deal with the seller.

Is it a seller’s or buyer’s market?

You must consider whether you are buying in a seller’s market (meaning that homes are selling for more than their listing prices) or a buyer’s market (homes are selling for less than their listing prices). If you’re buying in a buyer’s market, you’re in luck! You are more likely to find a bargain this way. However, if you’re house-hunting in a seller’s market, it will be trickier to get a good deal because sellers have the upper hand. In this case, any extras that the seller is willing to throw in will help make the deal more attractive to you.

What season are you buying in?

Keep in mind that the season you’re buying in has a huge effect on home prices. Summer is usually the most expensive time to buy. There tends to be a lot of inventory during the summer months, but competition drives the prices up. If you really want a deal, hold off buying until the fall or winter, when prices can drop dramatically.

Appreciation opportunities

Appreciation opportunities should also be factored into whether you’re getting a good deal. If you’re buying a home way below the asking price but it’s located in a depressed area with little development, your home won’t appreciate much over the years. However, if you find a more expensive home but the area is “up and coming” with lots of new development, it could be worth the higher asking price because the home will become more valuable in the years to come. Signs of appreciation opportunities include new developments such as malls, parks, bike paths and — sometimes — residential buildings.

To ensure you’re getting the best deal on a home, reach out to us today!

Benefits of Home Ownership

Home ownership has many advantages, both personal and financial, but buying a home is an important decision. Understanding the differences between renting and buying can help you decide if it is the right time to make the leap.

Benefits of Home Ownership:

  • Tax savings
    You may earn significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax as well as many states’ income tax if you itemize your deductions.
  • A stable monthly housing expense
    Your monthly housing loan or mortgage expense can remain the same for the life of your mortgage, depending on the type of loan you choose.
  • Equity
    You may build equity in your home over the life of your loan, which allows you to plan for future goals like your child’s education or your retirement.
  • Personal satisfaction
    Your home can be a great source of pride and satisfaction – giving you peace of mind that you’ve built a solid foundation on which to build your future.

Think you might be ready? Have more questions? Please don’t hesitate to contact me.

I look forward to hearing from you,

Sincerely,
Bob Idakaar

young bob idakaarBob Idakaar, GRI, Lifetime Achievement for Circle of Excellence, CRS,
Relocation & Senior Citizen Certified
bob@www.bobshomes.net
(973) 713-2377

 

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Weichert Realtors
973-539-8000 x 6677
20 Madison Ave
Morristown, NJ

Bobs Homes Home Improvements; Master Bedroom Suite ~

Home Improvements on Creating a Master Bedroom Suite ~

Creating a Wonderful Master Bedroom Suite…..

Creating a Master Bedroom Suite!

Going from “master bedroom” to “Master Bedroom Suite” has become one of the most popular home remodeling projects in recent years.

Here’s what to do, and what NOT to do, when taking on this booming bedroom project.

Most newer homes are built with master suites.Older homes require extra space for expanding and remodeling a master bedroom. If you have an older home and considering giving up an adjacent bedroom to find the space,  Remember that more bedrooms mean Higher Value of your home and think carefully before reducing the total number of bedrooms in your home.  “If you have a three-bedroom home and merge two of those rooms to create your master suite, you may severely limit the marketability and general appeal of the home,” says appraisal expert Dr. Donald Moliver, director of the Kislak Real Estate Institute at Monmouth University in West Long Branch, New Jersey. So, the What not to do is to not loose a bedroom to make your Mast Bedroom Suite bigger!

An addition has it’s reward by giving you more Square footage, but also costs more and takes more time.

You can expand your Castle or make better use of the space you already have to create your Master Bedroom Suite!

Your Master Bedroom Suite will consist of a Sparkling Bathroom, Great Closet space and Wonderful sleeping Space!

This Kind of Home Improvement adds Value to you and to your home!

Bob Idakaar of Bobs Homes whole hardheartedly agrees!

For all your Real Estate needs, please reach out to Bob Idakaar via email at Bob@BobsHomes.net or 973-713-2377

www.BobsHomes.net

Some ideas by Home improvement evangelist Tom Kraeutler     from the Money Pit