Buying a new house is indeed a joy. But it is also rife with challenges. Many a times you might find yourself stuck in dilemmas. After all, you are making a considerable investment into a commodity that will stay yours for years together. Why not make an informed choice?
Here are a few tips that will help you buy the right house at the right price.
1. Consider recently sold houses
If you need ways to determine the right price for your home, one useful trick is to consider the cost of recently sold houses. You take a comparable property with similar size, condition, amenities, and neighbourhood as an example. Through this method, you can draw an easy estimate of what should be the price of your house. It also gives you an insight into the gain value information of the house, like if it is less expensive than more extensive and better properties, or more costly than small and less attractive properties.
In this process, your real estate agent can prove to be of great help. Hiring a reputable real estate agent can get you accurate and up-to-date information on comparable properties.
2. Check out unsold properties
One popular trick to check out the best possible price for the home you are about to buy is to check out the unsold properties, preferably of a similar kind. If the house you are planning to buy is found to be priced similar to the homes that were taken off the market because no one would buy them, the logical conclusion is that the house in question may be overpriced. It is rational thinking that if there are similar properties available in the market for sale, then the price of the home should be similar or lower.
3. Read up on Market Condition and Appreciations
Are the property prices skyrocketing? Or have they stayed the same for many years? If you are looking to make a conscious choice about the cost of the estate before you buy it, learning about the market condition and appreciation is a must. Usually in a seller’s market properties tend to be somewhat overpriced always. On the other hand, in a buyer’s market, the prices are underpriced. However, all of this depends upon where the market currently sits on the real estate boom-and-bust curve.
Property may not be overpriced even in a seller’s market because the market is on the upswing and not near its peak. And it may be overpriced in a buyer’s market if the prices recently began to decline. So, it is important to read up on the current market condition.
4.Explore the expected appreciation
Another factor useful to deciphering the fair price of a house is the prospects of the chosen neighbourhood. This can have a significant impact on your worth as well. In case positive development is planned in the area, like a significant mall under construction, a large company is expected to move into the area, or an extension of light rail to the neighbourhood is expected, the future prospects of your new house looks good. Not just the significant changes, but even small developments such as new industrial plants to be added, more roads, or a new school in the area, can also be good signs.
On the other hand, if you find the grocery stores and gas stations closing down in the area, roads not adequately maintained, lack of residents, and prices of the houses are comparatively lower, you might want to reconsider buying that home. The development of new places can go either way; you have to consider even the smallest details to get a fair price.
5. Get an appraisal and an inspection
You should seek help from professional real estate agents to determine the right value of the property. Thoroughly inspect the house and its amenities. This inspection gives you another opportunity to persuade the seller to lower the prices further. In case the house is in need of multiple expensive repairs, the home inspection would allow you to ask the seller to get them repaired or ask for a discounted price so that you can make the repairs yourself.
Buying a new house is a big decision. Make this a pleasant experience by following the above tips.
