I want to get a deal! It's a buyer's market right?

So you're buying a home a want to get a deal huh? Well, I will tell you. In my experience there are only two ways to get a deal when you buy real estate. I don't care what kind of market it is. A buyers market, a seller's market... it doesn't matter. All a buyer's market is... there are more sellers than buyers. Unfortunately, that doesn't mean that on any given transaction that you will "get a deal". You and your agent have absolutely no control over the seller of the property. You might get lucky and present your low ball offer to a highly motivated seller and get it accepted, but that would be lucky. Your one offer has to hit a particular motivated buyer on just the right day. Which leads me to the first way to "find a deal".

1. WRITE 10 OFFERS A DAY. You read that right. 10 OFFERS A DAY. Your chances of finding that one motivated seller are much better if you are bombarding the market with low-ball offers. Now, here's the problem... the house you get might not be the house you want. But, this is a DEAL remember. I'm not talking about your dream home. I'm not even talking about a home you LIKE. I'm talking about a deal. It would be like going to a super discount warehouse and buying generic potato chips even though you like pringles. They don't taste the same, they don't have the same texture, but they sure do cost less. This methodology works best for investors who are not emotionally tied to the home.

2. JUST SHOP FOR THE BEST VALUE. This is the method that I advocate for people who are going to actually live in a home. This takes into consideration all of the aspects of buying a home. The process is simple. A) Figure out how much you can afford. B) Have your agent search for homes at NO MORE than 2% higher than that price. If you shop higher, you may not get it for the price you can actually afford. C) Look at the homes that fit all of your criteria. Don't make concessions. Shop for EXACTLY what you want. If you want 4 bedrooms, then shop for 4 bedrooms... NOT 3. NOT 3 and a Basement. D) Pick your favorite home. That home is a deal!

It's that simple... "Why is this home a deal?" you may ask. Well, it's very simple. You have shopped in a very specific price range... right? You have found a home that fits all of your criteria, right? And it's the best one available, right? I'd say that's a deal. If a home stands out as being the best in any certain price range, then it is the best deal going. EVEN if you paid full price, it's still a deal! Anything your agent can get off of the price should just be considered gravy.... and yummy gravy at that.

Until next time...