When you're purchasing a new home, you want to make sure that you get as much for your money as possible. Buying a house is a major investment, and is likely to be one of the largest purchases you'll make throughout your entire life. That's why it's vital for you to get a good deal. Use this information to learn two tips that can help you score the best deal the next time you're in the market for a house.
The first thing you'll want to do when you are looking to buy a new house is be proactive. If you're willing to put in a little legwork, you may be able to beat other buyers to the punch so you can save big.
For example, waiting until a house shows up in your realtor's multi-listing system (MLS) may not be the best idea. Once a house is in the MLS, other potential homebuyers will be able to see it, fall in love with it and make bids on it. The more people who bid on a property, the greater the leverage the seller has. This typically ends up driving the cost higher.
Instead of being passive about your home buying search, take the active approach. Look in local newspaper and online ads for homes that are for rent. Use the contact information that's listed to give the owner a call. You may be amazed to find that one or more of the owners has been looking to sell their house, but just hasn't had the time or desire to formally place the house on the market. Because you beat the crowd, you can keep demand from increasing the price.
Ask Realtors About List-To-Sales-Price Ratio
Having a realtor with strong negotiation skills is absolutely essential when you're buying a house. One way to tell whether or not a realtor has the negotiating chops that you need is to ask about their list-to-sales-price ratio. This is the amount of money that was actually paid for the house, versus what was asked for. If the ratio is relatively high, you should expect your realtor to go to bat for you to make sure that you don't overpay for a property.
Getting a good deal on your house is within reach if you just know what to do. When you're ready to buy a house, keep these tips in mind so you can get one at the price you deserve.