It is human nature to constantly strive for the best possible deal on everything we buy. It doesn’t matter if we are buying something as small as groceries or as large as a piece of real estate we are often obsessed with getting the best deal. There is a big difference is getting a bargain and getting a good deal. If someone offers you a new tractor but you live in an apartment are you getting a good deal? It is important to keep this in mind when house shopping. Not every good bargain will fit what you are looking to do.
Set Your Budget
Most buyers start their home search by stating a ballpark price they are looking to spend. This is practical and necessary but price may not be the most important criteria in your home search. If your budget is $200,000 and you find a home listed for $190,000 but it doesn’t have the number of bedrooms or bathrooms you are looking for this will end up costing you more down the road. A good deal is only that when you get an item that fits what you really want below your expected price. By getting a property below your budget may appear to make sense if it doesn’t fit you and your family’s needs you will end up wanting to get out quickly after you get into the property.
If your new home is too small, too big, too far from work or isn’t the style you really wanted you will regret your purchase almost immediately. Saving is important for everyone but if there was one area where you should pay for what you really want it is in where you will live. This doesn’t mean you should overpay or go outside of your budget but you also shouldn’t be motivated solely by price. The reality is that the market has a way of sorting itself out and there are very few bargains out there. Any perceived bargain will come with a catch attached. The property will need work or have to be bought as is. These very well could be good deals but they will require some work on your end to get there.
Gone are the days where you can lowball a seller and hope to meet in the middle. If you want to try to get a bargain you need to have your offer be enticing enough to provide some benefit for the seller that nobody else will or can. This can mean a quick cash closing, closing without contingencies or providing some other tangible benefit. Without these all a lowball offer will do is slow down negotiations and put your offer on the backburner. If you really want the property you need to make a strong offer that you are willing to live with regardless of the outcome. Trying to get a bargain based on a lowball offer is not the way to create value.
There are many good deals out there for buyers in today’s market. Price is an important factor but far from the most important criteria. Getting a bargain may not always be the best deal for you.