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

 

Join-us-on-Facebook

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

A few Real Estate thoughts from Bob Idakaar@www.BobsHomes.net

Winter is here in New Jersey; a month late… snow, bad roads, and a new Governor….So what does that have to do with Housing, Real Estate and the Spring Market?

The Real Estate forecast seems to teeter totter on events going on in the local news, weather, politics and of course national and world events.

The reason why just may be that consumer confidence is still shaky.

We all seem to need to point our fingers at something to blame for circumstance.

Well the simple truth is; We all still need a place to live.

Home ownership is still an ideal of the American Dream.

So as the economy slowly improves and interest rates stay stable

I see the Housing Market in New Jersey Improving.

Seems like from Morris County and East all the way to NYC will have the best uptick in sales and activity.

Time to move? Curious about what it takes to get a mortgage?

Wondering what your current home is worth ?

I also believe that Prices will improve and certainly stay strong all year.

Maybe it is time to relocate and find that right Realtor.

There are plenty of realtors out there ranging from no experience to competent experience.

I think it is a combination of both Experience, but they must have passion for their jobs and not do it for just making the dollar.

I am proud to say I serve my client and do my job as a service not just because

of a paycheck.

I am always just a call or email away.

I take the no pressure approach and ultimately help you make the best choice for YOU>

Please reach out via email BobIdakaar@att.net

or contact me through BobsHomes.net

Wishing you a healthy and wonderful blessed 2018!