8 Ways to Find a Better Deal on a Home
Whether you’re looking for properties to add to your investment portfolio or you’re just looking for a place you and your family can call home, you’re probably interested in finding the best possible deal on a property. With a better deal, you’ll pay less initially, you’ll have more flexibility for what you do with the property, and eventually, you’ll be able to obtain a higher profit.
So how can you find (and close) better deals?
How to Find a Better Deal on a Home
These are some of the best options for finding a better deal on a home:
Get a real estate license
One of your best options is to get a real estate license, especially if you’re interested in buying multiple properties over the course of many years. It takes a few hundred hours of studying and training, but once you’ve completed this coursework, you’ll be able to find much better deals, close your own offers, and learn what makes a deal “good” in the first place. If nothing else, it will give you the confidence you need to move forward with the deals you find most interesting.
Look at foreclosures and auctions
Though it’s not the right approach for everyone, you should consider looking at foreclosures and auctions in your area. You may even be able to get foreclosures before they’ve been foreclosed in processes known as pre-foreclosures. Properties put up for auction and those that have been foreclosed on tend to go for much lower prices; the only catch is, they also tend to be in poorer (or at least less reliable) condition. Be sure to carry out an inspection before finalizing the deal.
Open your mind to different neighborhoods
Many property buyers get stuck on the idea that they have to find a property in a specific neighborhood; this could be because they work close to this neighborhood, because they like the schools, or because they’re in love with the types of homes that are there. However, you can usually find much better deals if you’re open to searching in many different surrounding neighborhoods. Chances are, there are very similar areas nearby with lower prices—and if you don’t like the homes there as much initially, you can always close the gap with a home addition or renovation.
Shop for the best loan
While home price is a major considering factor, you can also score a better real estate deal by shopping around for a better loan. Review your options carefully and try to find a lender willing to offer you the lowest possible rate and terms.
Negotiate with the seller
This should go without saying, but be prepared to negotiate with your seller directly. You may be able to drive the price down lower, or push for the inclusion of extras. You may also be able to have them pay for additional costs, like closing costs, lowering the expenses you face.
Make offers on unlisted properties
If the listed prices of properties in an area are too high for your liking, you could consider making an offer on properties that are currently unlisted. Most homeowners won’t be willing to sell based on an improvised offer like this, but there’s a chance you could find a great deal this way—and you won’t have to face any competition if you follow through.
Get there fast
In highly competitive markets, it’s best to act fast. If you see a great home for a great price, don’t spend too long thinking about it. Try to put together an offer as soon as you can to appeal to the seller.
This may seem like contradictory advice, but remain patient. You don’t need to finalize a purchase immediately; if there aren’t any properties in your budget, or if you don’t see any good deals available, give it a few weeks and keep looking.
Dealing With Competitive Markets
In some cases, you may be stuck making bids on homes in a highly competitive market. In this situation, you may be dealing with very high asking prices, lots of competing buyers, and tough negotiations that keep pushing prices higher. There are some tactics you can use to dispel these negative effects, like making offers in cash or buying properties as is, but they almost always come with downsides as well. If your highest priority is to find a “good deal” on a property, you may consider leaving this highly competitive area and looking elsewhere.
Buying real estate is stressful and intimidating if you’re new to the process, but over time, as you gain experience, you’ll become more comfortable and more familiar with it. Learn from your time spent searching for a property, and be prepared to apply these lessons to your next purchase.