No one wants to be on the bad side of a real estate deal. As a buyer, you’d want to secure a home that aligns nicely with your wishlist without breaking the bank. On the other hand, the best deal for another person may be the higher-priced home with all the bells and whistles.
Regardless of your views, take note of these helpful tips on how to get a good deal on a house.
- Examine the market in-depth
- Looking into recently sold comparable properties (also known as “comps”). The final sale price of similar homes will help you determine if your list price is competitive.
- Checking out comps that remain unsold for months or went off market. Stagnant listings are stagnant for a reason: buyers refuse to bite because of price and real or perceived issues. If these unsold homes have a lot of similarities with the home you’re selling, price or location may be at issue. Consult your Realtor to strategize remedies.
- Analyzing past pricing trends. Work with your agent to look up the numbers dating back to a few years. Then, identify the points where demand spiked or waned. If you’re seeing familiar market conditions during your current home search, you’ll be in a good position to gauge if a property is priced too high or just right.
- Proceed carefully with FSBO homesThe term “for sale by owner”, or FSBO, refers to a person who sells a house without an agent. While it’s okay to take such listings seriously, it’s wise to proceed with caution. Check FSBO asking prices against the comps of the area. Negotiate to prevailing rates or lower since the seller has no agent to collect commissions. Discuss with your agent before making an offer.
- Look into distressed or auctioned propertiesYou can find great deals on homes that list below the current market rate. Distressed properties or homes on the brink of foreclosure are an option. Look at the condition of the home and assess the price of repairs and refurbishment against its price tag.
Browse properties that are bank-owned or on the way to being auctioned off. Explore sites like Zillow.com and Auction.com to find properties in foreclosure if you want to know more about this option.
- Identify your must-haves and nice-to-havesIn some situations, getting the best deal may involve selecting a higher-priced home with all the bells and whistles. Or, your best deal may be an affordable home with all your non-negotiables.
Whatever you consider your perfect real estate deal, you won’t get there without listing down your must-haves and nice-to-haves. Think carefully about your priorities (e.g., number of rooms, neighborhood, school district, proximity to parks, and so on). Everything else that’s not on your priority list is optional.
Your up-to-date knowledge of home statistics and prevailing trends in a given area will give you a better perspective on price. Get as much market information by:
Working with a real estate agent is the best way to get your hands on market information unavailable to most. Plus, an agent will be ready to bring up details that could inform your real estate strategy.
If you’re exploring the vast Los Angeles real estate market, let the seasoned agents from The Lux Group assist you as you embark on your real estate journey. Call 310.853.1000 or contact us here to get started.