{"id":657,"date":"2016-01-18T10:10:05","date_gmt":"2016-01-18T18:10:05","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=657"},"modified":"2016-01-15T21:07:00","modified_gmt":"2016-01-16T05:07:00","slug":"7-strategies-to-avoid-overpaying-for-a-house","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2016\/01\/7-strategies-to-avoid-overpaying-for-a-house\/","title":{"rendered":"7 Strategies to Avoid Overpaying for A House"},"content":{"rendered":"<p style=\"text-align: justify;\">There are lots of potential complications that can cause you to overpay for a house, from being caught up in open-house frenzy to skipping a home inspection to \u201csave\u201d yourself money. But just as there are obstacles to getting the best deal, there are also tried-and-true strategies to get a fair price for a home, like getting a private showing of that home for sale in Philadelphia, PA, instead of (or in addition to) attending the open house.<br \/>\nHere are seven more tips to calculate accurate house value and avoid overpaying for your home.<\/p>\n<p style=\"text-align: justify;\"><strong>1. Define \u201cfair price\u201d<\/strong><br \/>\nBefore we get into the nitty-gritty of landing the best deal, it\u2019s fair to point out that sometimes it\u2019s worth paying a bit more if that means you can score a house that perfectly suits your needs. Ask yourself: Is it really worth losing your dream home over a few thousand dollars? It\u2019s a call only you can make, but the answer just might be no.<\/p>\n<p style=\"text-align: justify;\"><strong>2. Know the comps<\/strong><br \/>\nOne of the best ways to know the value of a home is to find out what similar homes in the area recently sold for, known as \u201ccomps,\u201d or \u201ccomparable sales.\u201d Looking at what other homes in the neighborhood are listed for helps too. But you usually get the most accurate picture of local home values by looking at the price someone actually paid. \u201cIdeally, you\u2019ll be able to find at least three comparable properties that have sold recently in the same neighborhood,\u201d says Sam Heskel, CEO of Nadlan Valuation, a New York, NY, appraisal company. A real estate agent should be able to track down this information for you.<\/p>\n<p style=\"text-align: justify;\"><strong>3. Include an appraisal contingency<\/strong><br \/>\nTypically, when you buy a house, you put in an offer, and if the seller accepts it, your lender orders an appraisal. But if the appraisal comes in lower than the price you agreed to pay, you\u2019ll have some decisions to make. And you\u2019ll have more options if you\u2019ve included an appraisal contingency in your contract. \u201cAn appraisal contingency typically stipulates that the appraisal must come in at 5% or 10% of the sale price, or sometimes even at or above the sale price,\u201d says Heskel. \u201cIf the bank\u2019s appraiser says you\u2019re overpaying by $20,000, why should you pay that price?\u201d You can try to negotiate with the seller to meet you in the middle, but as long as you can afford to come up with the difference \u2014 because your lender probably won\u2019t agree to lend more than a home is worth \u2014 it\u2019s your call to determine whether you\u2019re overpaying for the property.<\/p>\n<p style=\"text-align: justify;\"><strong>4. Be your own investigative journalist<\/strong><br \/>\nWhen you\u2019re house-hunting, Google can be your best friend. Why? Because you want to know before you buy whether something\u2019s going on in the neighborhood that could affect property values. Maybe a high-density development is coming, or an increase in homeowners\u2019 association or condo fees is on the horizon. \u201cBuyers should do their own legwork to talk to city hall, the police department, the tax department, schools, neighbors, neighborhood groups, etc.,\u201d says Stacey Alcorn, CEO of LAER Realty Partners in Massachusetts.<\/p>\n<p style=\"text-align: justify;\"><strong>5. Work with a buyer\u2019s agent<\/strong><br \/>\nYes, you can browse listings on Trulia, but don\u2019t let that keep you from hiring a real estate agent. A good agent will know of properties that are about to hit the market (or might sell before the MLS listing goes live!) plus have expansive knowledge of your market, which can be a huge help if they suggest neighborhoods you haven\u2019t considered that are a great fit for your needs.<br \/>\n\u201cIn today\u2019s market with tight inventory, almost half of my deals are completed and sold off-market before they even hit the open market,\u201d says Ryan Pertile, a Minneapolis, MN, agent. \u201cSo homebuyers need to find and hire a real estate expert in their desired neighborhood.\u201d<br \/>\nBesides providing you with a comparative market analysis, an in-depth look at house values, a rock star agent \u201cknows the current condition of the market and what is a fair price,\u201d says Phillia Kim Downs, a New York, NY, agent. \u201cBased on the length of time the property has been on the market, whether it\u2019s a buyer\u2019s or seller\u2019s market, and whether there\u2019s a bidding war, an agent should be able to guide you effectively with strategy to make sure you get the most bang for your buck.\u201d<\/p>\n<p style=\"text-align: justify;\"><strong>6. Comparison-shop for your mortgage<\/strong><br \/>\nYou probably comparison-shop before buying furniture or even gas for your car. But almost half of consumers don\u2019t shop around for their mortgage, according to the Consumer Financial Protection Bureau. And that\u2019s a mistake. Lenders charge different fees, and they offer various interest rates, sometimes varying by half a percent or more. That could affect your payment to the tune of $60 a month.<\/p>\n<p style=\"text-align: justify;\"><strong>7. Don\u2019t get sucked into a bidding war<\/strong><br \/>\nIf you know you\u2019re in a seller\u2019s market (little supply with lots of demand), making an offer that\u2019s below the asking price probably won\u2019t get you the house \u2014 and it might put you in a bidding war situation. Typically, it\u2019s better to be preapproved with a mortgage loan and make a strong offer right off the bat. Entering a bidding war can become emotional. \u201cIf you really, really want the property, your logical, rational perceptions can get influenced,\u201d says Downs. Know your limit, and walk away if the price goes higher. There are always other homes that come on the market.<\/p>\n<p><a href=\"http:\/\/www.msn.com\/en-us\/money\/realestate\/7-strategies-to-avoid-overpaying-for-a-house\/ar-BBocMWu\" target=\"_blank\">7 Strategies to Avoid Overpaying for A House<\/a> by Laura Agadoni | MSN Real Estate<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are lots of potential complications that can cause you to overpay for a house, from being caught up in open-house frenzy to skipping a home inspection to \u201csave\u201d yourself &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2016\/01\/7-strategies-to-avoid-overpaying-for-a-house\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-657","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>7 Strategies to Avoid Overpaying for A House &#8226; 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