On any big-ticket purchase, you (naturally) want to get the best deal you can. Since buying a house will likely be the largest purchase of your life, you will especially want to ensure you’re getting a good deal. But that can be difficult to do because buying a house is such a complex transaction. And to further complicate matters, a large part of getting a good deal on a house involves the resale value. To help you out, then, here are 5 signs of a great deal when buying a house in West Orange.
1. Favorable Comparative Market Analysis
First, determine whether you’re getting a great deal when buying a West Orange house, you’ll need to find out how the asking price stacks up against the fair market value. “It’s impossible,” according to the experts, “to truly know whether you’re getting a good price on your particular home without checking the ‘comps,’ real estate shorthand for comparable sales. Most major real estate websites will surface recent sales prices of similar, nearby homes when you enter an address; buyer’s agents also often offer comparable sales data.”
A comparative market analysis (which is what “comps” refers to) involves a close examination and comparison of comparable homes in the immediate area that have recently sold. The sale prices of those very similar houses will give you a good idea of the fair market value of the house you’re interested in. And if the house is listed below that value (and without any major problems), then you are very likely getting a great deal when buying that West Orange house.
Your local real estate agent is trained to perform a thorough and accurate comparative market analysis. You could do it yourself, but theres just no room for error at this crucial step. Find out more by calling (347) 348-2281.
2. Good Price-to-Sale Ratio
Another sign of a great deal when buying a house in West Orange is a good price-to-sale ratio. “One measure of a good deal is how much of a discount you were able to negotiate off the list price – especially relative what negotiating power is typical for buyers in your area.” To calculate this price-to-sale ratio, you simply divide the house’s list price by the sale price (what you actually paid or will pay for it). The higher this ratio turns out to be, the better deal you got or will get. Again, your agent can be a great help here.
3. Ship-Shape Mechanical Systems
One very important thing to keep in mind is that even if you negotiate the price of the house down, you probably didn’t get a good deal if all the mechanical systems are not in good working order. An important ingredient in a great deal is how much you will wind up having to pay or not pay for repairs and upgrades. And certainly, less-than-optimal mechanical systems will affect resale value, which is another ingredient in a good deal.
Heres what those in the know recommend: “Your inspector can give you a rundown of your future home’s health, but keep a close eye on the roof, water heater, HVAC system, windows, and foundation. Pay attention to the plumbing and electrical, too. A problem with any one of these major systems can require a costly repair – and take a bite out of your payday.” You want all of these systems and their components to be new or at least in very good shape.
4. Quality Neighborhood and Schools
The surrounding area and especially the neighborhood also play a major role in whether you’re getting a great deal when buying a West Orange house. The neighborhood is where you will do your living, so it should be a good one. And, typically, that means good neighbors, walkability, plenty of close-by amenities, and, especially, increasing home values.
A great deal on a house also includes great schools. This is important even if you don’t have any school-aged children. Most of the time, good schools indicate a good, desirable area where the property will not decrease and will likely increase in value. And that means your house will fetch a good price if you ever decide to sell. Just make sure the property is actually within the advertised good school district. Your agent can help you out here.
This may seem painfully obvious, but many people overlook it in all the excitement: the house must also be affordable. No matter how great a deal you’re getting on a West Orange house, if you can’t afford the monthly mortgage payments, it’s not a good deal for you. “Ultimately, you can negotiate an amazing price and get all sorts of incentives thrown in, but if you are overextending yourself beyond the bounds of your personal budget, then even the best deal is just not a good deal.” So make sure, before you begin house hunting, exactly what you can afford and exactly where your financial boundaries lie.
Yes, you definitely can get a great deal when buying a house in West Orange. But you have to know what to look for and do some digging along with some mighty persuasive negotiating. Most of the time, then, most people are far better off with the help of an experienced local real estate agent.