Buying a home is hands down the biggest financial investment that you will ever make – it may even be the biggest financial risk that you take. It’s important for first time homebuyers as well as seasoned investors to be diligent throughout the entire process of buying a new property to make sure that they are paying a fair price, or that they are knowingly overpaying and ok with it. When a buyer is emotionally invested in a property, they are more likely to pay more than the home is worth because they are willing to do whatever it takes to secure the home as their own. Any buyer is capable of making a mistake during the home buying process, but this mistake can end up costing a lot of money. In this blog post we’re going to go over some of the more common ways that end up causing buyers to pay too much for a home as well as how to buy your home in College Station, TX without overpaying.
Common Buyer Mistakes
When you choose to buy a home, whether it’s for personal use or an investment, it’s important to negotiate a good and fair price. This will help you escape buyer’s remorse and also set you up for success if you choose to sell the property in a few years’ time. Here are some of the more common mistakes that buyers make:
- Attending Too Many Open Houses
There is something about the frenzy of going to an open house that brings out a competitive nature in all of us, which makes it easy to end up overpaying and getting emotionally invested in a house. Instead of going to multiple open houses we encourage you to explore available properties online and schedule private showings for the ones that you are really interested in.
- Emotional Shopping
One of the more expensive mistakes a buyer can make is letting a seller know how much you love their home. Once you have expressed how you feel it can make it difficult to negotiate the price down because the seller knows how motivated you are. No matter how wonderful a home is and how you excited you are about it, keep it to yourself.
- Skipping Inspections
Even brand-new homes will sometimes have issues that need to be fixed, which is why it’s so important to schedule proper inspections. Unless you are buying a home “as-is” there is no reason to skip an inspection. You may think you’re getting a great deal on a perfect home only to find out later that it needs expensive and extensive work.
- Taking Their Time to Make a Decision
Good properties sell fast, so once you’ve made up your mind about a specific property let your realtor know ASAP and be prepared to move quickly. If you find the perfect home today but don’t submit an offer until tomorrow, you may already be too late.
- Feeling Pressured to Make a Decision
On the other hand, even though it’s important to move quickly, if you have decided that this home is the one, if something does not feel right don’t feel pressured to make a quick deal. Don’t be afraid to ask questions and to negotiate – the goal is to get the best property for a fair price. The best way to get a good deal is to be prepared for some serious negotiations and to trust your agent to do it for you.
- Bidding Wars
Bidding wars are common in seller’s markets when there is more demand than there is inventory. Sometimes, a seller’s real estate agent will try to scare hesitant buyers into a deal by threatening to pass off the home to another potential buyer. In bidding wars no one wins, because whoever ends up buying the home also ends up overpaying.
- Forgetting About Hidden Costs
Remember that there is more to your new home than the initial price tag – there are closing costs, mortgage insurance, appraisal fees, inspection fees, taxes, title insurance and so much more. All of these additional fees add up to the total amount that will be coming out of your pocket, so be diligent to escape expensive surprises.
How to Buy a Home Without Overpaying in College Station, TX
If you have found your dream home and you can afford it, you may not care if it’s overpriced. On the other hand – no one likes the feeling of buyer’s remorse, especially in big transactions like buying a home. The best way to avoid buyer’s remorse is to avoid overpaying – below we have listed a few tips to help you avoid overpaying on a home in College Station, TX.
- Work with an Agent
Working with an experienced real estate professional offers numerous benefits – one of which is that they will guide you through the sales process and help you avoid overpaying for a property. A real estate agent can help you find a property, negotiate with the seller’s agent on your behalf, draft up documents and run the transaction from start to finish so that you don’t have to worry about missing a signature or a deadline. When it comes to big decisions like buying a home, sometimes it’s best to leave it to the professionals who have your best interest at heart.
- Dig Deep into the Comps
Comps are very important in real estate – this is a report put together by your real estate agent showing other homes in the area that have sold recently. Comps are comprised of properties that are similar in size and floor plan, bedroom and bathroom combination, lot size and upgrades. A comp report is a powerful tool that will give you an idea of what a fair price looks like for a house in the neighborhood you are interested in.
- Demand an Appraisal
Most transactions will always include an appraisal contingency – this is an important part of the sales process that is usually required by lenders and completed by a qualified appraiser to ensure that the property is worth the price you are agreeing to pay for it. If the appraisal shows a number below the sale price, then you may reconsider your purchase because it will make it harder to get loan approval and you will have to come up with a bigger down payment.
- Interview Different Lenders
You interview different real estate professionals before you choose who to work with and you should do the same with mortgage lenders. This is also a place where you can cut down the amount you pay for the house over the life of a loan, so it’s important to compare rates and closing costs between at least two different lenders.
- Be Realistic
Overpaying does not mean that you should expect to always strike an amazing deal on a home. There are definitely incredible opportunities in real estate where you can purchase a property below market value, but that does not mean that a home sold at a fair price is a bad deal. A fair price is what you are comfortable paying for a home that you love that is also properly valued in comparison to other homes in the area. If a home is priced right it will sell quickly, and if you can get it for the sales price without entering into a bidding war then you are paying a fair price.
- Shop Off Season
Spring tends to be the hottest seasons in real estate. If you are looking to avoid bidding wars and overpriced homes, we suggest waiting until the spring buying season dies down or holding off until the winter months when you are more likely to run into highly motivated sellers who price their homes to sell quickly.
Today’s world and real estate market is fast paced and ruthless, which means that you can’t afford to learn your lessons through trial and error. We hope that the information we have shared in this blog post has been educational and helpful and that it will help you be a savvy buyer. Our team at Brazos County Realty has helped countless buyers find their dream homes while saving them money at the same time. We have also worked with numerous sellers and guided them through the sometimes-daunting process of selling their property for a fair price.
Buying a house is the biggest financial transaction most of us will ever make, and no matter what the price is, paying too much for a home is never a good deal. Being armed with information and working with an experienced realtor whose main goal is to look out for you is the best way to protect yourself from overpaying for a home. Please feel free to contact us if you have any questions about real estate in Bryan College Station or if we can be of any assistance for your real estate needs. We look forward to speaking with you and working with you soon.