As the hot seller’s market continues, you may be considering putting your home up for sale. Over the past year, equities have been unpredictable, interest rates have continued at historical lows, and many businesses have gone under due to COVID-19. But one bright spot has been the escalating real estate arena.
Yet, while you could obtain a nice profit if your current home sells, you won’t likely want to pay a premium on the purchase of a new abode. With that in mind, how can you avoid overpaying for your next residence?
There are some strategies you can use, such as:
- Creating – and sticking with – a housing budget.
- Being prepared for a bidding war.
- Considering the cost of making updates to a home that doesn’t show well.
- Making your offer enticing in areas other besides just the sale price.
- Working with an experienced real estate professional who can guide you through the process.
Although it can be easy to let your emotions get in the way when you’ve found your “dream home,” it is absolutely essential to create and stick with a housing budget so you don’t overpay. Given the current seller’s market, it is also easy to get into a bidding war with other potential buyers. So, knowing where you need to bow out is critical.
In some cases, homes that are being offered as-is don’t show well. But that doesn’t mean these properties can’t be updated. Oftentimes, pictures of outdated homes are bypassed by other potential buyers. Therefore, you could earmark a certain amount for renovations.
There are also ways that you could make your offer more appealing to a seller – even if you don’t pay the highest price for their home. For instance, a quick closing date can get the seller out from under the carrying costs they are paying. You could also offer to pay for various items that need repair, rather than leaving this task to the seller.
Working with an experienced real estate professional is another plus. Not only can you put their negotiating skills to work for you, but because many agents know about unlisted properties, you may be able to make an offer on a home that nobody else knows about yet.
If you’d like more information on making offers in a seller’s market as well as an estimate of the value of your current home, please Contact Us. We look forward to hearing from you.