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Avoid Overpaying for Your Home

By Derren Peters

With few exceptions, every real estate transaction features a seller who wants to make as much money as possible, and a buyer equally motivated to save just as much money. In this way, real estate is no different than any other type of business. To avoid being one of the unfortunate souls to overpay for a home you could have acquired for less (perhaps much less), keep these tips in mind during each step of your adventures in the real estate market.

Lock in the best mortgage rate possible

Preapproval is the first big step towards buying a home. Those with great credit should be especially mindful of the importance of shopping for the best loan terms in the current market. Those with worse scores should research their eligibility for low-income or first time homebuyer programs.

Know what you want, and what you can afford

Be realistic about how much home you can afford. Once you've been pre-approved, focus on finding the best possible home in that range, one that fits your needs at the price you want.

Study the CMA

Your agent will provide you with a Comparative Market Analysis (CMA) detailing the average home prices for similar properties in the area. Your offer should be in line with these numbers.

Don't Ignore the Home Inspection

Hidden problems can add thousands to your expenses. No matter how much you love a home, the inspection doesn't lie.

Be Patient

You may not find the right home at the right price during the initial days and weeks of your home search. Exercise patience while looking for the home that combines your desired criteria with your required price tag.

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