If you’re anything like me, the price you’re paying for your new house seems like a blessing one day & an absolute rip off the next. I think this is a fairly natural aspect of being human yet it’s also completely insane. This post will explain a few things you can do to help rest easy at night after going unconditional!
ABC – Always Be COMPARING
MLS is an amazing tool, what’s even better than it’s ability to make real estate shopping quick & simple, is it’s database of comparable sales. Do not just let your realtor tell you if the house is a good price based off comparables, ask for the comparables yourself! Then, ask for the neighborhood sales overall; then, ask for the neighborhood sales over the last 10 years. Once you have this data it’s time to seriously review it. From this you should be able to see the neighborhood specific rate of appreciation, as well as any anomalies in the sales data, such as a short term bump in average selling prices (this would be a sign of gentrification).
Know The Neighborhood
Okay, congratulations! You know everything about every house that has sold in the neighborhood in the last 10 years! But do you know anything about the neighborhoods future? What’s the crime rate? Has it been increasing or decreasing? Is there public transit coming through? What are the chances the road your house is on becomes more or less busy? These are all questions for your realtor & push him to back his answers with facts! You’re paying him around $10,000 do not be afraid to utilize him or her to their fullest!
Patience is Key
Realtors are great for a lot of really positive things, but they’re also good at creating a sense of urgency which may not properly reflect your own situation as a buyer. Understanding the real estate market takes time & if you’re going to get a good deal you may have to shop around for a while. The longer you look for a home the more likely #1 your initial offers will get reconsidered by once complacent – now nervous – sellers. #2 The longer you have time for the perfect house to come on the market. Don’t let yourself settle until you’ve really given it a good run, I would suggest 5 months in the winter & 3 months in the summer! Warning: Just because you should take your time it does not mean you shouldn’t have all your bank, insurance & law information prepared & waiting for when you do find that perfect house. Many times it’s the buyer prepared to go unconditional immediately who gets the best deal!
So basically, to find the best house you need research & patience! Sounds pretty easy until you actually have to apply it!
Please check out my business: www.homebuyersyeg.com