How to Save Thousands of Dollars When You Buy

“When you analyze the strategy of those successful homebuyers who have the experience to purchase the home they want for thousands of dollars below a seller’s asking price, some common denominators emerge.”

If you’re like most homebuyers, you have two primary considerations in mind when you start looking for a home. First, you want to find a home that perfectly meets your needs and desires, and secondly, you want to purchase this home for the lowest possible price.

When you analyze the strategy of those successful homebuyers who have been able to purchase the home they want for thousands of dollars below a seller’s asking price, some common denominators emerge. Although your agent’s negotiating skills are important, there are three additional key factors that must come into play long before you ever submit an offer.

Steps to Saving Thousands of Dollars

1. Make sure you know what you want – As simple as this sounds, many homebuyers don’t have a firm idea in their heads before they go out searching for a home. In fact, when you go shopping for a place to live, there are actually two homes competing for your attention: the one that meets your needs, and the one that fulfills your desires. Obviously, your goal is to find one home that does both. But in the real world, this situation doesn’t always occur.

When you’re looking at homes you’ll find that you fall in love with one or another home for entirely different reasons. Is it better to buy the 4-bedroom home with room for your family to grow, or the one with the big eat-in kitchen that romances you with thoughts of big weekend family brunches? What’s more important: A big back yard? Or proximity to your child’s school? Far too often people buy a home for the wrong reasons, and then regret their decision when the home doesn’t meet their needs.

Don’t shop with stars in your eyes: satisfy your needs first. If you’re lucky, you’ll find a home that does this and also fulfills your desires. The important thing is to understand the difference before you get caught up in the excitement of looking.

2. Find out if your agent offers a “Buyer Profile System” or “Home Hunting Service” – This kind of system takes the guesswork out of finding just the right home that matches your needs. This type of program will cross-match your criteria with ALL available homes on the market and supply you with printed information on an ongoing basis. A program like this helps homebuyers take off their rose-colored glasses and, affordably, move into the home of their dreams.

To help you develop your homebuying strategy, use this form.

What do I absolutely NEED in my next home?
1. _________________________________
2. _________________________________
3. _________________________________
4. _________________________________
5. _________________________________

What would I absolutely LOVE in my next home?
1. _________________________________
2. _________________________________
3. _________________________________
4. _________________________________
5. _________________________________

3. How Sellers Set Their Asking Price
The third factor in savings thousands of dollars you need to know something about how sellers set their asking price. For you to understand how much to offer for a home you’re interested in it’s important to know how sellers price their homes. Here are 4 common strategies you’ll start to recognize when you begin to view homes.

Ridiculously Overpriced!
These sellers have listened to a real estate agent over-inflate the value of their home in an effort to obtain a listing. There is a natural tendency on the part of sellers to list with the real estate agent who gives them the highest promise. There is a tendency by some real estate agents to give the seller a high “value” in an effort to obtain the listing.

These homes can be 10–20% overpriced. These sellers may need a “dose of reality” for a few weeks before they begin to realize that their home is way overpriced as compared to others in the area.

The longer an overpriced home is for sale, the more likely you and your agent can get the seller to face reality and sell at a fair price.

A Little Overpriced...

These sellers fall into 2 categories:

Those who feel their home is worth every penny of their asking price.

Those who want to leave a little “negotiating” room.

These homes can be 4-10% overpriced. Perhaps 75% of all homes for sale are priced in this range.

Priced At Fair Market Value

These sellers have carefully and realistically studied other homes for sale. They have priced their homes very competitively. These homes usually sell within a few weeks at or very near the listed price.

Priced Below Fair Market Value

These homes are priced below value. Perhaps the seller wants a fast sale. Perhaps the real estate agent recommended too low a price. These homes usually sell within a few days at or above the listed price. There are usually competing offers, even in a buyer’s market.

Knowing how sellers price their homes will help you save thousands when you buy your home.

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