How to Recognize a Good Deal When Purchasing a New House

Tips in Determining Good House Deals

Home prizes can become so crazy if you do not know how to deal with them. When planning to buy a house in the new city you are moving in, there are a number of things that you should bear in mind. Getting a house is not about buying whatever house that comes up on the listing first or whatever has been shoved to you by a real estate agent. When you make decisions like this, think of the monthly cost that you are going to shoulder later on. Please take note that monthly cost for the house will include your taxes, insurance, maintenance, mortgage and many more. If you are a regular employee who does not have much, those payables are too much so there is the need to be careful in making decisions because after all getting a house is a form of expenses no matter what.

Comparable properties

One element of a good deal for a new house is this. How can you know if you are getting a good price if there are no comparisons? The agent you hired should be able to give you comparisons of real estate properties in the area, says Kristina Morales, the leading Realtor in Orange County. However, comparing properties should be done carefully; in short, there is the need to compare apples to apples, not apples to oranges.

In order to correctly compare properties, (1) ask your agent to search sold prices of properties in the area, (2) contrast deals with houses with the same transaction types, and (3) the comparable properties should be the same in terms of specs like location, bathrooms, number of bedrooms, condition and many more.

Double checking the ratio of LP to SP

Doing the math is really essential in order to make a good deal. According to experts, LP:SP is essential so that you can determine whether the price is accurate based on the type of a market you are in. In a depressed market, it is usual to see home prices that are slightly lower to their assigned listing price. For more information regarding LP:SP ratio, ask your agents for more detailed information.

Affordability

A good deal is simply measured by asking the question “can you be able to afford it?” If no then it is not a good deal for you. However, the reason you are working with a professional real estate agent is to be able to negotiate the price. To avoid spending over the limit, know your financial limit first before checking out the market. Second, make sure to always consult your mortgage regarding the monthly and down payment cost. If you cannot really shoulder it then consider other type of deals.

Home prizes can go up on a yearly basis. With a good agent who is really familiar with the movement in the market and the local area where you are getting a new house, you can be able to cut down some costs. As much as you can, get a real estate agent who is always affiliated to NAR or National Association of Realtors; agents who are under the belt of NAR are usually trusted because they really help their clients get affordable yet high quality houses.