This is the first post in a blog series about tips on home buying, specifically, steps to ensure that you don’t overpay on a property in a bidding war. I’m also currently in the middle of blog series that looks at this issue from the other side, and explains strategies that sellers can use to generate a bidding war among buyers.
Tips on Home Buying – No Matter How Excited You are About a Home, Don’t Overpay!
Sellers love it when their home sells in a bidding war, and buyers get caught up in the emotion of the moment, trying desperately to one-up each other in their effort to get the home. However, it’s important to not get so caught up in the emotion of the moment that you overpay for your home. Buying a home is not like buying a flat screen TV or even a car – Trust me when I say that you DON’T want buyers’ remorse when you purchase real estate.
Important First Step: Decide in Advance the Absolute Maximum You’re Willing to Pay for the Home
It’s your real estate agent’s job to do a thorough comparable market analysis of the home you like, in order to give you a good idea of how much it’s worth. If it’s a fixer-upper, there should be two main components to your agent’s analysis – one part will analyze value before any renovations, and the other part will analyze value after a hypothetical renovation.
Are you looking for other great tips on home buying? Email me at DarrenRobertsonHomes@gmail.com for the top 5 mistakes that first time homebuyers in Northern Virginia make.