Top 10 Tips to getting a Good Deal in Today’s Housing Market!

With interest rates continuing to sky rocket and home prices continuing to rise it’s not a fun game for buyers these days. However, there are still ways to maximize your home buying power and get you in not just the perfect home but a perfect asset. So, here are the top ten ways to make sure you get a great deal in today’s housing market.

1. Start the process early

2. Compare different lender’s fees

3. Work with a great buyer’s agent

4. Consider FSBO and As-Is properties

5. Look at dated homes that need cosmetic updates

6. Look into properties that have had price reductions

7. Consider expected appreciation

8. Don’t skip the home inspection

9. Buy in the off season - if you can

10. Ask for the sellers’ to cover buydowns instead of closing cost

So, Let’s Dive In!

1. Start the process early

The beginning of your buying journey shouldn’t start when you absolutely need to move or are tight on time. It’s best to start the process and allow yourself to have time to check all the avenues and find the best route for you and your family. Starting early will allow you to interview multiple buyer’s agents and lenders. It will also allow for you to know all your options up front, narrow down multiple zip codes, start saving up for your closing cost, and more.

2. Compare different lender’s fees

When you go starting the process early you will have more time to explore different lenders and their options. Things that you should consider when interviewing lenders are their fees at closing (they all have different ones), the interest rate they give you (they are not universal), if they have a manual or automated underwriting system, how they plan on communicating throughout the process, what down payment percentage you qualify for, what underline rules they have specific to their company, and also I recommend checking out the difference between a mortgage lender and mortgage broker.

3. Work with a great buyer’s agent

I know there are a TON of real estate agents. But, trust me when I saw they are all not the same. You want to make sure the agent you decide to work with is super knowledgeable about the market and local neighborhoods. You are going to want someone who is working with you to help you find the perfect property without breaking the bank. Make sure to interview them on the current market stats, how they work outside of the MLS, how they communicate with their clients, and most importantly how they stay current on their continued real estate education.

4. Consider FSBO and As-Is properties

I know when home searching it can be tempting to stray away from the less attractive home listings. However, this is why you should dive into them. They are of less demand and the competition is a lot slimmer. So, you have an opportunity to get homes for under market value or with seller credit back at closing. Just make sure you have a great agent to look into all the details of the properties.

5. Look at dated homes that need cosmetic updates

It can be hard to see the beauty behind the subway tiles and pealing paint. But, looking into properties that seem less desirable is a great way to get a property under market value and with a little elbow geese add a ton of equity and room for appreciation. There are a lot of homes out there that are great structurally and just need some new paint, floors, fixtures, or appliances. Make sure you have an agent that can help you see the beauty in the ashes (hopefully not actual ashes though).

6. Look into properties that have had price reductions

While price reductions can be intimadating… “why did they drop the price?” “did they find something wrong?” “what is the home really worth?” “why hasn’t it sold?” These are questions I hear all the time and I get it buying a house is a huge investment and you want to make sure you invest in a good one. But, properties that have had price reductions are most likely to offer the best buying incentives. Also, keep in mind that you could always go back up on the price and have the seller apply the difference at closing to your closing cost or buydown points.

7. Consider expected appreciation

So, one thing I stress to all my clients is to look beyond the property and see the properties future potential. Stats show that buyers only stay in there homes for around 8 years so your first home doesn’t have to be your last. Not only will it most likely not be your last but, it can be an investment for your future when you sell it. So, let’s find you a property with a ton of appreciation potential that future you can benefit from.

8. Don’t skip the home inspection

Contrary to the idea that taking away the inspection to intise a seller to accept a lower offer… Taking away the inspection clause could end up costing you a TON in hidden challenges. Not to mention the inspection report is a huge negotiating tactic that you’d be giving up. Some top ways you can include an inspection and make your offer stronger are to include certain phrases or limits. One of my favorites is “the inspection report is for informational purposes unless repairs total over x amount.”

9. Buy in the off season - if you can

If you have the luxury of choosing when your planning on buying… Consider the slow months to get a better deal! What are the slow months you ask? That varies slightly depending on the market but, standardly it’s anytime around a holiday. Especially around November through the end of January. There are less buyers looking during this time so you have more room for negotiating.

10. Ask for the sellers’ to cover buydowns instead of closing cost

If a seller is offering a credit back at closing or a price reduction you may want to consider asking to have it go towards buyer buydown points. What are buydown points? It’s a way for you to get a lower interest rate on your loan. Basically how it works is you pay towards buydown points that will “buydown” your rate. For every 1% of your loan amount the interest rate will drop .25. Depending on the purchase price this could end up saving you and your family a ton.

Hope you enjoyed this blog post. If you ever need anything real estate related feel free to reach out anytime!