Whether you have just set your foot on the threshold of the real estate market, or if you’re an old hand at the real estate game — buying a home is always a challenging process. It is an emotional time packed with tough choices. And, each of the decisions you make has your hard-earned money riding on it.
While it is difficult to choose the right time and the right house for your family, it is equally hard to make sure that you don’t overpay for a house. Buyers have a tough time dealing with the torrent of emotions that come along with the home buying process, and they tend to make some bad choices like skipping on a home inspection or getting caught up in open house frenzy.
As a real estate agent who has already helped numerous home buyers find the perfect home for their family and save money on it, I’ve compiled a list of some handy tips that I use and advise my clients to follow through, too.
To Avoid Overpaying for a House- Do These Things:
1. Decide How Much You Are Willing to Pay for the Dream Home and Where to Draw the Line
I understand that this must be hard to hear, but let me break this to you. On your house hunt, you will most likely find a house that fits your needs –and one that fits your dreams. And more often than not, the dream home will cost more than you can afford (*sigh* blame Murphy’s Law and today’s seller’s market for driving prices up!).
Homeowners are often overcome with emotions during the process. And sometimes lean towards paying extra money to cinch that perfect home. While it may seem like a good option at the time, it may turn out to be a terrible one down the road.
Depending on the price range of your future home, you may have to pay more than the asking price to win the deal. Knowing this in advance, prepare yourself by looking for homes lower in the range. This way, you can still bid higher if necessary and still be in your target zone.
How to make sure that you don’t go downhill? Simple! Jot down your budget and the last amount that you would be willing to pay for a dream home in a notepad or a journal. When you have a clear number/ range in front of you, it will be much easier to stay on track and resist the temptation of over-extending your budget.
A professional realtor can let you know how homes in your price range are selling. Are they receiving 15-20 offers and going for $25,000 above asking price, etc. (yes, believe it or not, some are). If you are looking in that price range, we need to start lower, knowing what you are dealing with.
If you are a first-time buyer, this checklist would be quite handy for you!
2. Have a Winning Team Back Your Choices
You can be a tough soul, but the selection and stress of choosing the right mortgage and the hassle of negotiation will wear you down.
This is why you need a professional real estate agent on your side to back you up. And, save you time and energy by taking care of the most harrowing details. A good real estate agent is equipped with the knowledge and experience gained by helping numerous buyers and sellers. This is why so many buyers reach out to us when they need a professional at their disposal.
Keep in mind that most of the sellers that you would come across will have a real estate agent to make sure that they get the best deal. Get a pro on your side to even the scales, and then tip it in your favor– whether buying pre-owned or new construction Reach out to the Judi Wright Team if you need help in not overpaying for a house in Frisco, Dallas, Aubrey or Plano.
3. Head Over Heart—Think Like a Seller!
The best way to pay more on a house: Get emotionally attached to it.
I suggest to all my customers to think like a seller. Say, you find an amazing place with a pool, garden, and many other features. But, is it worth splurging extra thousands of dollars? This is a question that you need to answer logically. Refer to your budget and threshold, and if you cannot afford it, walk away.
Yes, it may seem like the hardest thing to do, letting your dream home slip right through your fingers. But, it may be better to walk away before the sale rather than after it is too late. Especially when buying in a Seller’s market. It is always better to step back and look at the home from a logical perspective. And, if you decide to pay more, at least you will know it wasn’t an emotional decision.
Think long term when buying a house. Weigh a home’s potential five, ten years down the road, and its use to your family. A reliable real estate agent will help to lead you towards the choice that is right for you. And, like all good partners, they will be the logical voice you need when caught up in emotions.
Need a logical voice on your side? Reach out to the Judi Wright Team today! We’ll be happy to help!
About the Judi Wright Team
Judi Wright/The Judi Wright Team is a real estate group specializing in the suburbs of Frisco, Plano, and surrounding areas. Named the “Best Realtor in Dallas,” by D Magazine eleven times and a Five Star Realtor with Texas Monthly, Judi is also a Company-Wide Top performer with Ebby Halliday and the #1 Top Small Group for Ebby Halliday Frisco.