Buying a home for yourself is a roller coaster for people. Deciding on a reasonable price for it further adds to the dilemma. There is always a fear in the minds of buyers that they might be tricked into paying more than the market value or end up with a not-so-worthwhile property.
It is because of these confusions that most of the purchase decisions get postponed, and the buyers are kept waiting. While it is true that the prices of a property fluctuate from time to time, and there are peak and lean seasons of the real estate industry, there aren’t any sharp price falls or increments ever.
So, if you don’t wish to get ripped off and ensure that you get the right price, here are a few tips to help you make the best investment decision (of buying a home) of your life:
Look at the Recently Sold Properties
Before buying a property at a fair price, you should spend some time exploring properties of a similar size, condition, and neighborhood, and then comparing them with the property you are planning to invest in. Evaluate whether the prices are considerably less or somewhere around your budget figure. This process, referred to as CMA (Comparative Market Analysis), gives you a general sense of what is fair to offer as a sale price. You can source all the updated information from a trustworthy real estate agent in your city.
Reasons for the Unsold Equivalents
If the house you are eyeing is in any way similar to the properties that have been taken off the real estate market lately, you can presume that it happened because maybe they were overpriced. You can do that by checking out the unsold inventory index and understanding the existing supply and demand trend. That will also gauge the time duration for the properties to be sold at that given rate.
Calculate the Future Appreciations
Depending upon where the market in your region sits curve and where it is expected to curve in the future, the prices can vary. For instance, if there is a major tourist place or a corporate building anticipated in your neighborhood soon, paying a high price for it will be a fair deal. On the contrary, if roads, schools, gas stations, and similar other amenities are expected to shut down, it would not be worth the investment.
Ask for an Expert’s Opinion
Once you are under the contract, you can go ahead with the property’s inspection to ensure that you get what you paid for. You can contact a qualified home inspector and wait for a detailed home inspection report to determine the property’s actual condition. If the house requires any expensive repairs, you can ask the seller to fix them for you or discount the purchase price- either way, it is a win-win situation for you.
