You work hard for your money, so you definitely don’t want to overpay when you’re buying a new home. In fact, the number one fear we hear from home buyers, especially first-time buyers, is that they might overpay for their new home.
Before you put in an offer on any home, make sure you’re following these three key points:
1. First, make sure you are working with your own real estate agent who is representing you as a buyer. While it may seem convenient to work directly with the seller’s Realtor, realize that the seller’s agent is already contracted to work for the seller, not the buyer. Get your own agent to work 100% for you. This alone can help ensure you don’t overpay for your new home.
2. Next, use multiple tools to determine a home’s value. In addition to the comparable sales reports your agent will research for you, do your own research on home values. When you do, make sure you are comparing apples to apples. Find homes in your exact neighborhood that are similar in size, age, number of rooms, and extra features. Also, look at sold listings, not active listings. And if you use online home value estimators, realize that they are not always accurate. Therefore, use them as loose guidelines only and don’t get fixated on one high or low number.
3. Finally, stay in control of your emotions. Buying a home is an exciting and an emotional experience. So it’s easy to get sucked into a bidding war. Set your price limit for the home and be prepared to walk away if the bidding gets too high. The last thing you want is buyer’s remorse, especially for such a major purchase.
When you keep these three guidelines in mind, you can rest assured that you won’t overpay for your new home. Whether you’re looking for your first home or wanting to upsize or downsize, we can help! Contact us today!