If you are buying a home, odds are that you want to find the best deal possible. How can you do that?
First, it’s important to know your goals. Do you want to keep as much cash in your pocket as possible? Do you want a lower monthly payment? Do you want to pay the house off as soon as possible? Or is the goal to pick up additional items, like the playset in the backyard, the golf cart, or the fridge?
Once you know your goals, you need to figure out what the market is doing. What defines a good deal here in Edmond? Right now in the $200,000 to $300,000 price range, homes are selling for 98.5% of the asking price. That means that the average buyer is getting a 1.5% discount off the listing price.
Since that is the case, if you get 3% off the listing price, then you get twice the discount the average buyer is seeing in our market.
Now it’s time to find a home that lines up with your goals. We use a couple of strategies to identify homes that will be a “good deal.”
1. Look for a well-priced home that is new to the market. You have to be ready to go and have all your ducks in a row. Make sure you have a pre-approval letter or proof of funds letter. You have to decide quickly if you want to make an offer on the home. The key here is to make your offer and lock the property up before there are multiple offers on the property; that is what will keep the sales price low.
2. Look for a house that has been on the market for a long time and gone through several price reductions.The seller might have overpriced the home to try and get more money, but that failed. Now that the home has been on the market for five months, buyers think, “This looks like a good house at a good price, but it’s been on the market awhile. What’s wrong with it?” More than likely, there is nothing wrong with the home; the seller just made a pricing error. As a buyer, you can take advantage of that situation.
3. Look at vacant homes. Whether the seller has to sell or can hold onto the property for a long time doesn’t matter. There are still costs such as taxes, utilities, and insurance payments that the seller will not be able to recover. As a result, vacant properties will have a more motivated seller.
If you have any other questions about finding the best deal in today’s market, just give us a call or send us an email. My team and I would be happy to help you!