Number 1: Don’t Low Ball
In most cases a home is listed with an agent will be priced competitively, so if you make an offer much lower then what they are expecting, they may take offence. If you start with a low ball offer, sometimes the seller will counter much closer to the list price because they are unhappy with said offer. You can still negotiate the price based on comparable homes that have sold, and if you write a strong offer close to the market value, it is much more likely to be accepted.
Number 2: Location, Location, Location
Try not to buy the nicest home on the worse street, but rather the worst home on the nicest street you can afford. If you are looking to eventually sell your home, you are more likely get a better return on your money if you buy the worst house on the nicest street than the other way around, it’s all about location, location, location.
Number 3: Get a Home Inspector
Try your best to get a home inspection, the cost will vary between $350-550, however this could end up being the best money you have ever spent. A home inspector will look at many things that we may have missed when we viewed the home. After the inspection you will get a report that notes any problems with the home, and at this point you can decide whether you want to continue with the purchase of the subject home or keep looking.
Number 4: Budget For Closing Costs
Once your offer has been accepted remember that you will have to pay the land transfer tax and the lawyers fees. Also budget for movers and any minor improvements you may want to make when you take possession. I recommend saving an extra 2-3% to cover all of the closing costs, however, depending on what you want to do to the home you many need more.
Number 5: Use an Agent
When buying a home there are so many questions you will have, thus the value of an agent is undeniable. The best part is, as a buyer, it will not cost you anything to work with an agent, as it is the seller who pays both REALTORS® their fees! Buying a home is likely to be the largest transaction of your life, so it only makes sense to get the help of someone who does it everyday!
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