Every homebuyer wants to get the best property in the best location for their money. Many buyers are more concerned with getting a good deal over getting the property they really want. The truth is that not every bargain ends up being a good deal. If the property does not fit your taste or is not in the right location even the best deal will not make sense for you. This is why in most cases it makes sense to go after the property you really want instead of a perceived bargain. Here are three examples of when a bargain may not be such a good deal.
Property needs too much work. If your down payment is stretching your savings thin you may not have much money left over after your purchase. If this is the case a property that needs excessive work does not make much sense for your current situation. Even if you can scrape some funds together to finish the property you may not do it in a way that makes sense. If you envision yourself in a property for the foreseeable future you want to do everything perfect. Simply getting the property done so you can live in it is not the plan. You may be able to get the seller to accept your well below asking price offer but than what. If the property needs excessive work and you don’t have the capital you are not really getting a good deal.
Property doesn’t fit your needs. How much are you really saving by getting a 10-20% reduction for a property you don’t really like? 10-20% off of the asking price is a huge drop. That being said if the property does not have the number of bedrooms, bathrooms or other amenities you want you will end up regretting your purchase. You should be happy and satisfied every day you walk into your home. Buying because you got such a good deal will not make you feel any better six months after the transaction. It is also better to buy the property you really want even it if is at a slightly higher cost to you.
Poor location. Where you live is almost as important as the property you buy. A bad location doesn’t necessarily mean a bad area but a poor location for your needs. Things like school systems, taxes, demographics and highway accessibility are important. Paying less for a property doesn’t mean your total mortgage payment will be lower if your property taxes are higher. You also need to consider your job commute, street activity and how well a property can retain its value. If all other things are equal a bargain in a poor location may be a good deal but you need to make sure everything else is equal.
Instead of obsessing about getting one over on the seller focus on buying a property you have no regrets buying. At the end of the day you cannot but a price tag on your happiness.