So, you’ve been searching for months for your dream home, and you’ve finally found the perfect fit. It’s in the ideal location, has the exact number of bedrooms and baths that you require, and it even has a few bonus items that you didn’t have on your list – but that now make the package even that much more complete. Now you need to learn how not to overpay for the home you’ve fallen in love with.
Unfortunately, the asking price is just a tad bit above your budget. So, what should you do? Move forward with an offer, based on the seller’s asking price – knowing that you’ll end up paying more (much more, over time) than you had hoped? Or, do you go in with a lower offer, knowing that you could walk away with a rejection from the seller?
Tips for Not Paying More Than You Should On a Home – Even If You Absolutely Love It
The truth is that, even if you’ve fallen madly in love with a home, the very first step to buying a property without overpaying for it is to get pre-approved from a bank or other lender. This differs from just simply getting pre-qualified.
A pre-approval from a financial institution will provide you will several advantages – including knowing the maximum amount of home you will be able to buy. Even if you come in with an offer that is lower than another potential purchaser, thought, you could still end up with an accepted offer if the other offer did not come from someone who is pre-approved.
Knowing what other homes in the surrounding area are selling for can also be a plus in not overpaying. If you are working with a real estate agent, have them prepare for you a comparative market analysis, or CMA prior to making an offer on any property. The CMA will tell you the price of recent sales of nearby homes, as well as the asking price of listings that have recently expired.
Working with a buyer’s agent throughout the process can be helpful. Doing so can provide you with a negotiator who is on your side. For more information and tips about purchasing, or if you would like a free market analysis of your current home, Contact Us.