Buying a property can be quite exciting because yes, you are making a worthwhile investment and more so, you are becoming a property owner, amazing isn’t it?
Now one major problem people generally face when buying properties is buying a property at an overtly costly rate which is mostly caused by the irregularity of the market. Sometimes after purchasing something under negotiation, buyers do tend to feel they could have gone a bit lower with their price while sellers would feel they should have gone higher on the deal, this is called a buyer or sellers remorse and this article is here to enlighten you on knowing whether or not you are getting a good deal on the property you intend to buy.
To weigh how good of a deal the property you intend to buy is, you need to;
Understand your idea of a good deal
What does a good deal mean to you? Is a good deal getting your dream home at a price you can afford? Is it buying a home for a discount lesser than what is sold in the market? Is it getting it for a discount less than what the owner paid when he purchased it? Is it buying an expensive property with lots of amenities or is it getting a massive ROI on a property in a short time?
When it comes to understanding your idea of a good deal, it varies because what a particular buyer considers a deal breaker might not be for another because Real Estate is about choices and YOUR CHOICE is the deal.
So the first hint on knowing what a good deal is, is understanding what your idea of a good deal is because a good deal is basically what you make of it.
Research, Calculate and Understand Your Option
When buying a property, do a proper research and compare your prices to market standards by Understanding the market value of the actual property. To estimate the market value of a property, check out similar homes in the area which has recently been sold. It’s important to know that similarity is an important factor because the more similar, the more recent it is and the more easier it is to analyze and calculate.
When analyzing and calculating, always understand that houses can be different in terms of sizes and quality for instance. Sometimes buyers tend to make the mistake of comparing homes via foot and sizes, forgetting that a property could be 10 times smaller than a neighboring property but that doesn’t mean it would be worth 10 times less this might be due to the fact that it might be in better condition even though it is still in the same neighborhood.
This comparison and analysis works best with homes that are in very similar condition as well as neighborhoods.
When buying properties. It is important to understand market dynamics. The time frame is also a huge factor to consider. If you are looking to buy a home during winter, expect to get a better deal compared to summertime.
Is the property within your budget range?
You might get the best deal but it’s not enough if it’s beyond your personal budget. For cases like this, it is ultimately important to negotiate as well as ask yourself if it is in your budget range.
The best way to get the best deal is to be clear on max housing costs your finances can bear before entering the market to look for homes.
Also try being realistic when researching properties as to what kind is actually within your budget, this would help you find the best.
Most importantly take your time to negotiate as you might get the chance to get more value for your money than you think.