According to one report, almost 40 percent of recent home buyers felt that they overpaid. Ouch! But, it doesn’t have to be that way. Here are some ways to avoid spending too much on a home.
Don’t Assume a Bidding War
Just because the market has been hot, that doesn’t mean the house you want will receive a slew of offers. Instead of assuming a bidding war will erupt, find out as much as you can about the property itself and the local market. This info will allow you to make a competitive offer that won’t be tainted by possibly non-existent competition.
Don’t Go First
You might love the first home you see, but try to resist the urge to make a move on it. Instead, take your time and look at a few options. You want to find a home that fits your needs, not simply a home that is for sale.
As with the bidding war, don’t assume you have to come out with a sky-high first offer for a home. Instead of making an offer way over the asking price, consider an escalation clause. This lets the buyer know you’d like to pay roughly the asking price, but will increase your offer (to a certain point) to match other offers if need be. In order to avoid overpaying for a home, proceed with caution and think the matter through. Patience can be your greatest asset.
Original article by Chris O’Shea and adapted in partnership with SavvyMoney.