Saving Thousands When You Buy a Home
So this blog feeds off of our last blog, "Selling your Home for the Most Money", and in that blog we gave some common and not so common tips to accomplish that. I would like to go into a little more detail about the tip "Buying Low". For some folks, this makes perfect sense, but for others who maybe have never bought a house might be thinking you have to pay whatever the owner asks. You would be correct, but what if you could make the seller ask you for less money?
So, before we dig in too deep, let's go over some broad strokes of the real estate market. There are 2 types of housing markets, and they come and go with the economy much like the fish with the tide. The first type is a "Buyer's Market", this was most recently evident after the 2009 housing crash. There were tons of houses that were being sold, and nobody who could buy them. As a result, you had all types of properties from studio apartments, McMansions, and even commercial properties being sold off for much less than what would typically see. On top of that, the Banks were offering low-interest rates in order to kick start the economy. A buyers market while it sounds great is really only a case for "the rich getting richer". This is because the only people who still had jobs, and savings were able to buy these properties. A lot of the time, these same people could have paid full, or even over the market value. So for most of us out there, these "Buyer's Markets" are difficult to capitalize on.
The second market type is known as a "Seller's Market". This is a market that is not over saturated with a lot of homes. You typically see these homes sell quickly and often times above the list price. The last couple of years have been a Seller's Market. As the economy recovered from the 2009 crash, people had jobs and money again, but the number of new houses has not been at the same rate as before. We now get to see how the supply or availability of homes goes down and the demand for homes goes up, causes older homes to sell for more money.
A lot of times, people try to sell their home for top dollar simply because their neighbors did, and they think that their home is worth the same. These homes can be complete flips or original works with some fresh paint on. Either way, this is where a detailed home inspection comes into play. When you go to buy a home, knowledge is power, and the more you know the more power you have. It can be difficult and even impossible some times to know more about a home than the homeowner, but if you want to save thousands, this is where a quality detailed inspection comes into play.
Now before we continue a quick disclaimer. Not all home inspections can save you thousands, and sometimes the house is as perfect as it seems. What I can promise is that a poor inspection will always cost you money. Do your research in your own area, find a reputable home inspector, and then research their credentials. InterNACHI makes it simple to find quality home inspectors in your area. As the largest Home Inspection School in the world, they set the standard for quality and provide their students with continued education. This continued education is what separates a detailed inspection from the others. To find an InterNACHI inspector in your area click here.
Recently I got to inspect a home that was being flipped after an extensive renovation from the plumbing up. It was apparent that the home had suffered from water damage in the kitchen, and both of the bathrooms. We found some things around the house that needed to be addressed but it was the extensive remaining water damage and poor repair attempts that kept my clients from moving forward with this particular home.
A long story short, my clients put in a request for the seller to fix and address everything that we found in the inspection. They agreed by taking 10K off of the price! Now, this is a perfect world example of a home that was probably priced a little high because another flip sold recently, and we were able to find some big issues that gave my clients the advantage. Once the seller knows of issues in the home they are legally obligated to inform the next buyer, even if that buyer's inspection didn't turn up anything. So a detailed home inspection that turns up several issues makes it difficult for the seller to relist for as much money as before, and the seller often knows this. #knowledgeispower #internachi #abodesolutionsllc
I hope you have learned something, and if nothing else enjoyed diving deeper into this tip. If you have questions or comments, please reach out to me or leave them below and I will respond as quickly as possible.