Buyers are always looking to get the best deal on a house and they should. This is a large investment. However in our current market where inventory levels are low and interest rates are hovering at all-time lows while rental prices continue to increase, sellers are not discounting their properties. I talk with a lot of first time home buyers who want to offer 10% or less on a property hoping the seller will take it. This is just not realistic. Sometimes these buyers have to learn the hard way. They make a low offer only to learn a better offer came in and the seller has chosen the other offer. This can be very disheartening especially if you really thought that was your dream home.
Buyers need to look at comparable homes (comps) in the area that have sold in the past 3-6 months. Based upon the size of the house, number of bedrooms and baths, and the amenities –granite counter tops, new flooring, storm shelter, etc determine if the value of the home is fair. They need to look at the location of the property and the neighborhood values overall not just the price per square foot. I always tell my clients nobody is really stealing anything in housing, what we want is a fair deal. Fair deals can and do happen every day by comparing comparable properties and making educated decisions.
Excerpt from a Zillow article I read:
If you are continuously on the hunt for a “deal,” this could be a red flag that you are not ready to buy. If you need to purchase a car, you likely research car prices online before heading to the dealership. You understand that the values range, and attempt to get your car as close to the lower end of the range as possible. If not, you won’t be buying a car.
Will you wait another year to see where prices are? Probably not. Instead, you make a car purchase based on the best deal you can negotiate at that time.
The same goes with home buying. Buyers who spend considerable time learning the market will have experiential knowledge of what they can get for their money and where. They have a realistic view of the market.
An experienced realtor will be able to guide the buyer in determining value. They may have knowledge about the community of upcoming developments that may impact values of certain areas. An example of a new park with community center being built that was discussed at a city planning meeting or a plan to widen a road that will impact the traffic. While realtors often have this type of information, I strongly suggest that the buyer do their due diligence to research and know what is going on in their community. This can make a huge difference when you go to sell.