If you're like most homebuyers, you have two primary considerations in mind when you start looking for a home.
First, you want to find a home that perfectly meets your must haves, needs, wants and desires. Secondly, you want to purchase this home for the lowest possible price without offending the home seller to the extent they are uncooperative and may even cause you some grief.
We have analyzed successful buyer processes and some common denominators emerged.
Although your Buyer’s Agents negotiating skills are important, there are three additional key factors that must come into play long before you ever submit an offer.
Make sure you know what you want. As simple as this sounds, many homebuyers don't have a firm idea of what they want before they go out searching for a home.
In fact, many times there are actually two homes competing for your attention: the one that meets your needs, and the one that fulfills your desires.
Obviously, your goal is to find one home that does both. But in the real world, this situation doesn't always happen. When you're looking at homes, you'll find that you fall in love with one home or another for entirely different reasons.
Is it better to buy the 4 bedroom home with room for your family to grow, or the one with the big eat-in kitchen for weekend family brunches?
What's more important a big backyard, or proximity to your child's school? Caution – some home buyers purchase a home for the wrong reasons, and then regret their decision when the home doesn't meet their needs.
By using our Market Watch System, our buyers are finding a lot of the "guesswork" of finding just the right home is removed.
This type of program will cross-match your criteria with ALL available homes on the MLS system and email you with all the fresh new listings on an ongoing basis.
To help you develop your home buying strategy, answer the following questions:
What I absolutely “Must Have” in my next home?
What I “Need” in my next home?
What I “Want in my next home?
There are four common strategies to recognize when you begin to view homes.
To understand how much to offer, it is important for you to know how sellers price their homes.
1. Clearly Overpriced
Every seller wants the most amount of money they can for their home, and Real Estate Agents know this. If more than one Listing Agent is competing for the listing, then an easy way to win the battle is to over inflate the value of the property. This is done far too often, with many homes that are priced 10-20% over their true market value.
In most cases, the market won't be fooled. As a result, this home could remain for sale on the market for 4-12 months, with many drawbacks. The home is likely to be labeled as a "troubled" house by other agents, leading to a lower than fair market price when an offer is finally made
Buyers say to themselves, "If no one else wanted to buy this home in the last 120 days, then I don't want it either...it must be a dog." These homes often expire (the listing runs out), forcing the seller to go through the listing process all over again.
2. Somewhat Overpriced
About 3/4 of the homes on the market are 5-10% overpriced. These homes will also sit on the market longer than they should.
There is usually one of two factors at play here:
Either the sellers believe in their heart that the home is really worth this much despite what the market has indicated.
OR they have left some room for negotiating.
3. Priced Correctly at Market Value
Some sellers understand that Real Estate is a system of supply and demand and will carefully and realistically price their homes based on a thorough analysis of other homes on the market. These competitively priced homes usually sell within a month or two, very close to the asking price.
4. Priced Below the Fair Market Value
Some sellers are motivated and want a quick sale. These homes attract multiple offers and sell fast, usually in a few days, at or above the asking price. If the property you are looking at falls in this category of having multiple offers, then we will give you coaching and construct the offer differently so you can have a chance of being successful .
When buying, we prepare a market evaluation of the home you are considering. By using comparable sales of all the similar homes sold in the last 2 months you will be empowered to know what to offer, what is too high and what is too low.
For a Free Buyer`s Consultation call us at 604-859-2341 or fill in the form below.