Don't let buying a home bust your budget - make sure the house you choose is worth the price you pay. My latest Investopedia article, 10 Tips For Getting A Fair Price On A Home, discusses ten ways to evaluate the price of a residential property you're interested in buying to make sure you're getting a reasonable price.
In addition to the tips in the article, here are a few more:
-What time of year is it? If you're buying a home in the spring or summer, prices will generally be somewhat higher because of increased demand. Families with children want to move when it will be least disruptive to everyone's schedules or may be trying to get into a neighborhood with a good school district before the enrollment for the new school year.
-Has the seller already lowered the asking price? If so, you can probably get the property for less than the asking price because the property is not in demand and the seller knows it.
-Ultimately, it doesn’t matter whether the price is objectively fair or not. If the seller doesn’t want to accept your offering price, they don’t have to, no matter how solidly researched and how close to fair market value it is. And if someone else is willing to pay more than what is “fair,” you may have to up your price too if you want to win the property.
Photo by rvaphotodude
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