How to get a fair price on your new home

Mar 1, 2022 | Gateway Blog, New Home

If you’re buying a new home, you want to get the best deal possible. Here are some steps you can take to ensure you get your dream house for the right price.

Look at the comps

The first step is to look at comparable houses sold within the past few months. If you’re working with a realtor, they can access a comparative market analysis. This document compares your potential home’s price with others recently sold in the area. The analysis considers the home’s age, location and size. It’s a great tool to estimate the price for sellers and provide a baseline for buyers looking to make an offer.

Consider appreciation

Your prospective neighborhood can have a big impact on your home’s price in the future. If there are positive developments in the works like recreation areas and shopping centers, there’s a good chance the value of your home will increase as time goes on. However, if you notice a lack of community engagement and deterioration of local businesses, chances are your home’s price will reflect that.

Appraisal and inspection

Appraisals help determine the property’s fair market value. Banks require appraisals before they make a loan to ensure they don’t give you more money than the home is worth. If the appraisal comes back higher than the purchase price, that means you’re getting a good deal. However, if it’s less than the purchase price, it’s time to renegotiate.

An inspection also helps the buyer negotiate the price. Does the home need extensive repairs? You can either try to get money knocked off the price or have the seller complete the repairs.

Calculate price per square foot

Price per square foot is often used when determining good deals for new construction builds. Calculating the average price per square foot is also helpful if the homes you’re looking at all have similar square footage. Most times, factors like location, condition of the home and lot size are more important in determining the value.

Final thoughts

Buying a home doesn’t have to be stressful. If you’re in the market for some new digs and want to know if you’re getting a good deal, give Gateway Realty a call.

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