DISCLAIMER: The author does not intend to offer any form of legal or financial advice. All real estate sales involve substantial risk. Consultation with a qualified attorney is recommended. Also, there may be significant tax consequences. Consultation with a qualified tax professional is recommended.
It may sound pretty basic, but before you try to buy a house at below market prices, you need to actually know what the market price is. To understand the market value of homes you have to look at several factors.
- What is happening in the broader market? All of these factors will have an effect on how much a home is actually worth.
a. Are home prices in your area going up, down, or sideways?
b. Is unemployment going up or down, or have there been any recent announcements of layoffs or hiring?
c. How many houses are available all over the area? - What is happening in the local market?
a. Is the neighborhood going up down or sideways?
i. Do you see vacant houses?
ii. Do you see unmowed lawns and signs of repairs that haven’t been made?
iii. Are there any developments happening near or in the neighborhood?
iv. Is there easy access to commuting, shopping and schools?
b. How many houses are available in your neighborhood and in adjoining neighborhoods?
i. Do you see lots of “for sale” signs?
ii. How many “for rent” signs are there? - What is the condition of the house you want to buy and the homes immediately surrounding it? How much will it cost to buy the property, repair it, and pay for it while making the repairs (taxes, insurance, mortgage payments, HOA dues, etc.). If you fix the house up to make it your dream home, or just habitable, will it outclass the rest of the neighborhood? If the answer is yes, then you probably shouldn't buy this house. Even though you may plan to live here for the next 30 years, things happen and you could need to sell right away. If your house looks like a jewel in a pig's nose of a neighborhood, you won't get full value for the house because of the neighborhood.
- How much are comparable houses selling for?
a. To be sure a recent sale is truly comparable to the house you are looking at,
i. Make sure you look at three to six home sales within ½ mile, within the last six months.
ii. Take note, foreclosure sales are almost always well below market value, but they pull down the resale value for all houses in an area. This is usually a false deflation because they usually need lots of repairs before they are ready for occupancy. Unfortunately the cost of repairs doesn’t show up in the sale records.
iii. After you know the values and compute the value of the house you are looking at, drive by the comparable houses to make sure they actually are comparable in size, finish, features, and neighborhood with the home you are looking at.
Using all the information you have gathered above, figure out what is the going price for houses in the area where you want to buy. Now, you can begin to look for a house you want to buy. At the Gold Seal Homes Group, our team of experts examines all the factors above for every home we buy and sell. We do this for two reasons:
1. We don’t want to pay more for a home than we should, and
2. We want to be sure when we sell you a home, it is already priced below market.
You can spend a lot of time studying the market, studying the neighborhood, finding comparables, looking at comparables, driving neighborhoods looking for a home and then trying to buy it. Or, you can come to the Gold Seal Homes Group, tell us what you are looking for and where, and then sit back while we do all the hard work and bring a home to you for you to buy.
When we find a home, in addition to all the hard work above, then we check out the home itself to determine the quality of the home. Because we actually buy these homes and resell them to you, we are taking on the risk of buying, just like you. We don’t want to own a house that isn’t a quality home anymore than you do. That is why you can be assured when you buy a home from the Gold Seal Homes Group it is a quality home at an affordable price, below market. That gives you peace of mind.
Whether you are looking for your first home, another home, or you are looking for real estate investment properties, we can find what you are looking for and sell it to you at a price which is below market and affordable.
Contact us today at igottasellmyhousetoday@gmail.com
Tom ~
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