Once you find your favorite home, should you buy it? Sounds like a silly question if your goal is to own a new home. However, there are several things that determine whether a house you like is one should buy.
The first key factor is to find a professional real estate pro that knows you and the marketplace you are interested in buying. Ask your pro for references you can check. Sit with your realtor and go over in detail what the market is doing right now and what the trends are looking like going forward before you even start looking beyond the internet.
Once you start visiting actual homes be systematic. If you see five houses in a day finish with a declared favorite. Give your agent lots of feedback, especially about what you don’t like about a house so they can help rule out homes that will not be of any interest.
After a clear favorite is determined, make sure you see homes that are both less expensive and more expensive so that you understand the value propositions. At this point your agent really begins to earn their money. Your pro will assemble a list of comparable homes (it should be at least 3) that have sold in the same area in the past 3 months or less. Your agent should be able to go over with you why these homes sold for the price they did and whether the house you want matches up well in terms of value.
Once you have established the price that makes your target home a clear value, plan out the negotiation strategy with your agent. If the market data is clear, you should feel good about the price you are going to pay for your home. The bottom line is having a plan before you shop.
There are, of course, lots of things to figure out about home value. Make sure you don’t start the process with lots of unanswered questions.