The hottest season is summertime both weather-wise and our real estate market. I've come up with 10 TIPS how to avoid purchasing an overpriced home.
1. WORK WITH A REAL ESTATE AGENT
We know the real estate market and we understand when a home is overpriced by doing our research, running sales comparables, and simply selling a lot of homes in the Gallatin Valley allows us to navigate the channels for you and with you confidently. Working with a Buyer's Agent is FREE for a buyer.
2. SELLER SITUATION
With assistance of your Buyer's Agent, you can navigate how long the property has been on the market and gather an understanding what type of situation the seller is in. "Are they looking to sell a home? Do they need to occupy the home after closing? Do they want to close by a certain date?" Knowing a seller's situation could HELP you avoid overpaying and possibly allow you to win out in a potential bidding war by being flexible for a seller and their transition.
3. OBTAIN A SALES VALUATION
With access to sold data in our MLS, we as Realtors can easily run a sales valuation on a property. There is zero cost to the report and we as much as you do want to ensure you do not overpay for a property. This report encompasses running comparables on like properties in nearby proximity. All you have to do is ASK!
4. SHORT TO LONG TERM PLAN
Know how long you want to be in the property for and that you should plan on keeping your home for a 3+ year plan. Understand your long term budget (having a Financial Adviser could be helpful) but also know that a fluctuation of a few thousand dollars on a purchase price will only minimally increase your monthly mortgage if any.
5. COST OF RENOVATING
Finding an available contractor in our valley to do a renovation project within a timely manner and within budget is no easy task. In addition to that, a contractor could have higher pricing depending on your home's location, extent of the project, etc. Be prepared for a bid to be over what you want to budget for. A turn-key property without renovation work could easily be about the same (lower priced home needing work).
6. WRITE A LETTER
Personalize your offer and write a letter to the seller describing who you are, why you like their property, and personalize your story as much as possible. If you can only afford "so much", allow a seller to understand your situation.
If you can budget for house projects to happen after closing, the homes needing a little TLC are the bread and butter of this market. You won't be overpaying if you know what you are willing to live with and without.
Of course, do get pre-qualified with a lender BEFORE shopping for homes. "What is your bottom line? What monthly payment do you not want to exceed?" If you are interested getting connected with one of our preferred lenders, simply click this link.
Do your homework to understand what certain finishing costs are on a basic level. A simple vanity replacement will not be a massive expense or changing out light fixtures is a relatively inexpensive expense and task. Some homes may have DIY projects that you want to stay away from depending on the quality of work...
10. AVOID FOR SALE BY OWNER PROPERTIES
For sale by owners may not have the same access to properly price a home on the market. Unless the for sale by owner is pricing the home under market, be extremely careful if you are going to purchase a for sale by owner property with financing. Should an appraisal run short of the purchase price, you could run into some trouble.
If you have any questions about the home buying process, simply send me a text or email me at 925-785-2596 or email me at Marisa@BuyBozemanHomes.com.
Marisa Owen - Realtor
Posted by Marisa Owen on