Everyone loves a great deal. That’s why the newspapers come with coupons tucked in them and every major retailer offers steep discounts on Black Friday. However, a great bargain in the housing market is much harder to come by. The current real estate environment of limited inventory and inflated prices makes things even harder for home buyers. If you’re tempted to save some money and go bargain hunting, here’s what you need to know.
Skipping a Real Estate Agent
Real estate agents do much more than coordinate home showing and listening to your preferences. Real estate agents are your representative throughout the home buying process, and you often won’t save any money by skipping out on an agent if you are the buyer. In most cases, the home seller will pay commission for both agents. Think you can handle negotiations better than a trained real estate agent? Think again! Real estate agents have access to information not available to those bargain hunting online.
Trying to Get a Steal on a Short Sale
A serious bargain hunting mistake that many buyers make is assuming that short sales will give them an excellent home at a low price. Since home values are currently through the roof, short sales are harder and harder to come by. The ease of finding a great home for an affordable price 10 years ago is no longer the reality.
Making Too Many Compromises
Compromise is an important part of the home purchasing process, since sometimes the exact number of bedrooms and bathrooms you are looking for doesn’t exist in the zip code that you want to live in. If you find yourself making too many compromises just to get a deal on a great home, you are making a classic bargain hunting mistake.
Skipping Home Inspection
Your home inspector is one of the most important allies you will have during the home buying process. What you save in not hiring a home inspector will undoubtedly cost you later. Even for new home purchases, you should hire a home inspector to check every inch of the home for problems. Skipping a home inspection also means that you will not have leeway for renegotiation on price.
Forgoing Title Insurance
Title insurance protects you from the excessive costs that can arise when the home that you purchased has liens against the title or another title issue. In short, title insurance ensures that the home you purchased is rightfully yours and protects you in the event that the home does not have a clean title.
Bargain Hunting the Right Way with Homeland Title & Escrow
Homeland Title & Escrow offers a broad range of title services, including complimentary consultations for first-time homebuyers. To learn more about our services, give us a call at (410) 544-6700.