WANT TO GET A GOOD DEAL ON A HOUSE?
Everyone does! Let’s say the Jones’ are selling their house for $349,000. Let’s go through a few scenarios:
- Their house is worth $349,000 – offer something near this, as you will also be asking for closing costs in the neighborhood of $12,000 so you would be getting the house for $337,000. Good deal? ($12,000 savings)
- Their house is worth $380,000 – offer $360,000 and ask for $12,000 closing cost help. So you are getting a $380,000 house for $348,000 ($32,000 savings!!) Many people will get hung up on the fact that they are offering more than “list price” but in reality the seller priced it this way to generate a flood of interest in the home and it will almost definitely seller for MORE than list price.
- Their house is worth $320,000. In this case the Jones’ are crazy and you can’t argue with crazy. Go find another house.
How do you determine what a house is worth? Simply put it is worth what someone will pay for it….but it is much more complicated than that in the real world. What do we look at when determining value and anticipated bidding price?
- Comps – what are other homes in the neighborhood selling for?
- How long has the house been on the market?
- What price did they start at? How much have they come down?
- What are the price trends in the neighborhood (remember real estate is local – not national)
- How long have they owned the house? What did they pay for it?
- And another half dozen things we look at condition, etc.
Wrapping it up: Buying a house is it’s own “GOOD DEAL”
Data shows that the average homeowner has a net worth of nearly $200,000 v a renter who averages just over $5,000. Homeowners pay less each month for their house than their renting neighbors. Homeowners homes are gaining in value (equity that they get to keep when they sell) Renters are paying someone else’s mortgage. And my favorite…Homeowners get to deduct their interest on their taxes, further reducing their monthly net payment by hundreds more!
In Short: Call us to join the ranks of happy homeowners in your neighborhood today!