Raise your hand if you want to overpay for a house? Anyone…? We thought so. Of course, you do not want to pay too much! But at the same time, putting in a competitive bid is critical in having your offer accepted. It’s a balancing act, to be sure. Getting a good deal on a house depends upon understanding the market, the house’s value, and whether it is priced accordingly.
Analyzing comparables. Looking at market conditions. Evaluating property conditions. Nailing down financial considerations. There is a lot to think about when buying a home… Good thing we’re here for you. Let’s find out how to know if a house is priced right.
The Price Is Right… Or Is It?
How do you know if a house is priced right? It requires a little bit of homework. But don’t worry – it’s manageable. Here’s what you want to do:
1. Check Comparables
This is one of those things that sounds impressive: “I’m going to check the comparables. I’m a savvy buyer; that’s what we do.” It’s also one of those things that are easy to do – if you know where to look. So, savvy buyer here’s where you look:
- MLS. You can’t access the MLS unless you are a licensed real estate agent, so make sure you have a great one on board. They can get the information you need to determine the value and figure out a bid.
- Public Records. The county in which you are searching for a home keeps records of sales. You will likely be able to search these online; if not, go to the county courthouse. (Be sure to call and ask if you need an appointment.)
- Online Resources. Utilize tools like Zillow, Trulia, Realtor, and Redfin to search comps.
What will the comps tell you? They tell you the price that homes sold for according to certain criteria, such as:
- Time frame (e.g., within the last three to six months)
- Number of bedrooms and bathrooms
- Condition of the home (e.g., recent renovations, updates, outdated features, etc.)
- Age of home
- Nearby amenities and features
- Price per square foot
Get a sense of the price at which properties for sale similar to those you have your eye on are going for. This will position you to put in an appropriate bid.
2. Check LP:SP
Because you need another acronym in your life… LP:SP is the list price to sale price ratio. Your real estate agent can give you the inside scoop on how much homes were listed for versus how much they sold for. This gives you a sense of your negotiating power given the current market.
3. Check the Long-Term Cost of Ownership
Is the price of a home too good to be true? Well, you could be getting a great deal… or you could be getting a money pit. When considering the big question – how to know if a house is priced right? – consider ongoing costs. How much are utilities going to cost month to month? Will you need a new roof in a year? Do you foresee needing major upgrades?
When you choose Synergy Homes, you can rest assured: your home will be strictly “plug and play.” That is, everything you need to live comfortably, and beautifully, will be integrated into your home. Our model homes are built to last – and to make you feel right at home.
4. Check Reality
Bottom line time: can you afford it? Negotiating a terrific deal is one thing: but if that “deal” does not fit into your budget – if it causes you to become overextended- it is no bargain. Many home buyers start with a “This Is It” price – but that figure creeps up as they continue their search.
Make sure you have a clear and accurate view of your finances, and then talk to your lender about the facts and figures behind your down payment, closing costs, monthly payments, and escrow taxes and insurance before you put in that offer.
5. Come Home
We know that getting a good deal on a house is essential, especially in today’s market. This is why choosing Synergy Homes is a no-brainer. Utilizing the most advanced techniques and strategies in the building industry, our homes are tailored to the needs of today’s buyers. With a tight thermal envelope, you are looking at an efficiency that outperforms the vast majority of homes on the market. Further, though, we take pride in our attention to detail. After all, this is your home. High-quality fixtures, fittings, and finishings welcome you home – and ensure you enjoy coming home year after year.
>> Find out how to make your dream of homeownership a reality. Contact the Synergy Homes team today.