If you are buying a home, there are a few things you must be careful about. While home inspection and areas are valid factors to keep in mind when buying a home, you must also know if you’re getting a good price on a home.
According to Bankrate, the homeownership rate in the United States was at 65.5% in 2021, with 38.3% being first-time buyers under the age of 35. Whether first-time or novice home buyers, they all have one thing in common; they don’t want to pay more for a house than what it’s worth.
Read below to find out how you can know if you’re getting a good price on a home and how Robert DeFalco Realty can help.
How to Know if You’re Getting a Good Price on a Home?
Getting a fair price on a home is essential, but how do you know if you’re getting a good price? The following tips can help save you from buyer’s remorse.
1. Check out Recently Sold Properties
The best way to know if you’re getting a good price is to compare the home to similar properties in the neighborhood that were sold recently.
Properties of the same size, most of the same furnishings, and conditions in the same neighborhood should be priced similarly or close to each other at the very least.
Similarly, you can also compare the property with better recently sold homes. Try to find out if the house is more or less expensive than bigger and nicer properties in the same area. If it’s more pricey, it’s a glaring red flag that the home is overpriced.
2. Check out Properties Still on the Market
Properties on the market offer a better pricing analysis since you can visit them. Check out the property’s size, furnishings, and amenities and compare them with the home you are buying.
Sellers know that the prices must be similar to similar properties on the market. Moreover, there is a bit of competition between similar properties on the market, so that you might get a better understanding.
3. Check out Unsold Properties
Houses do not sell for many reasons, primarily because they are too high. Often, these properties are pulled from the market to wait for an ideal time.
Compare the price of the home you are considering with unsold properties to see if they are priced less, the same, or more than the home you are buying.
4. Ask Your Real Estate Agent to Know if You’re Getting a Good Price
Comparing similar properties can be confusing, especially if you do not know how to proceed. In such cases, it’s always best to rely on your real estate agent.
Real estate agents have years of experience and can tell if the home is overpriced. Additionally, they are adept at comparative market analysis and can let you know if you’re getting a good price on a home.
Robert DeFalco Realty has well-trained and professional real estate agents who have spent years in the real estate business and can help you find the perfect home at the right price, so you don’t have to worry about overpaying.
5. What are the Market Conditions?
Home prices in real estate tend to vary depending on the market conditions. The homes are more expensive in a seller’s market than in a buyer’s market. Hence, you need to be aware of the market conditions to assess better the value of the homey you are buying.
Generally, homes are less expensive during winter than in spring or summer. This is because there are fewer buyers in the market. However, that is not always the case.
Since fewer buyers are in the market, there are also fewer homes for sale. Hence, it’s better to thoroughly assess the market conditions to determine the peak and average home prices.
6. Is it a Sale-by-Owner Property?
Generally, about eight to ten percent of home sellers do not employ real estate agents when selling a home. Such properties are for-sale-by-owner (FSBO) properties.
It would be best if you kept an eye out on such properties because they should cost less, as they do not account for a real estate agent’s commission, which is generally around 3%.
Another factor to consider is that these sellers might not have priced their homes right because they did not get professional help and guidance from a real estate agent.
They might not take into account the suggestions of a real estate agent because they did not like the estimated selling price they suggested. In either case, it would be best to be cautious.
7. Get an Appraisal
In most cases, home sellers would get an appraisal done once you are under contract. The appraisal is done mainly to ensure that they get their owed money in cases you stop making mortgage payments.
The best way to know if you’re getting a good price on a home is if the appraisal comes back less than what the offering price was. In such cases, your mortgage lender might not even let you purchase the property unless the price is lowered.
How Robert DeFalco Realty Can Help
Robert DeFalco Realty has more than 300 trained professionals and has been in the real estate business for over thirty years. The extensive training and experience these agents get allow them to help you buy a home at just the right price.
If you are unsure about the price of the home you are buying, call Robert DeFalco Realty at 718-987-7900 or fill out the form online.
Alternatively, you can visit them at any of their offices, and they will let you know if you’re getting a good price on a home.