Lower prices might be tempting for many buyers as we usually think that the lower the price the better the deal is. But when it comes to the housing market, bargains are not always the best deals. When you have a found a home you really like, factors other than price may be worth considering before you start the bidding process.
Consider Price And Potential Value – Paying for the lowest price usually applies more on consumables and items that depreciate in value over time such as electronics or small appliances but may mean the opposite for higher value items as investments including homes. What you pay now can affect your sale price later which may mean paying less and selling for less or shelling out more and later on selling for more in terms of total earnings.
Keeping Up With The Price Trend – Paying less for your home than was paid for the last similar home may result to a downward price trend that can be difficult to reverse over time. On the other hand, maintaining the trend of price appreciation can end up becoming a very good investment. Either way, this sets the trending value which according to appraisers establishes what your home and comparable properties will be worth. Meaning, the last sale or “comp” sets the value for similar home types in an area.
Home At First Sight – Sometimes you only spend a few minutes viewing a home and you feel that this is it. Settling for something else than what you really wanted even for a similar home structure or type because of price concerns is always a downer as there are factors that made you fall in love with your first option in the first place that cannot be replicated such as view, lay of the land, the address or even type of neighborhood. Experts have noted that buyers lose out on what they really wanted and more often than not paying more tomorrow for something less than what they could have had today as a result of increasing prices and rates.
Price, Payments and Longevity of Term – Having a higher payment when you pay more for the home may mean an extra $10,000 of mortgage money but that will add less than $50 per month on a low-rate, 30-year loan. When you’re financing your purchase, chances are that you will never come close to paying the actual price but may starting by paying a small down payment and then paying interest on the loan until you refinance or sell so the longevity of your contract determines whether you will save or lose money.
An experienced Realtor and Loan Officer can evaluate your current status and recommend the best options fitted to your situation. Don’t hesitate to ask for assistance as we will be very happy to map out choices that will be to your best advantage and help you weigh your options for the home you would really love to own today. We’ll help you navigate through the housing market you will have a good grip on what really transpires when buying a home.