First-Time Homebuyer Series
Frequently Asked Questions – How Do I Know if the Property is a Good Deal?
Welcome to our First-Time Homebuyer Blog Series. We’ve compiled answers to frequently asked homebuyer questions to help you understand the many variables associated with buying your first home. It’s our job to make this process as enjoyable and stress-free as possible for you!
Buying a home is a big deal – especially the first time around. And it can be scary if you don’t have a knowledgeable team of experts on your side throughout the homebuying and mortgage financing processes.
We help people buy and sell real estate every day, so we know how to best assess which properties will offer the best bang for your investment.
Four key considerations
- Use a real estate professional who’s familiar with the area and, therefore, understands how to effectively price different types of homes in specific neighbourhoods.
- Check comparable sales. It’s impossible to truly know whether you’re receiving a good price on a particular home without checking the area’s comparable sales. Most major real estate websites show recent sales prices for similar, nearby homes when you enter an address. Buyers’ agents also often offer comparable sales data. Look for ‘sold’ prices – not just list prices for similar properties. Dig even deeper by ensuring the listed comparables are, in fact, similar in terms of bedrooms, bathrooms, square footage and so on.
- Compare the list price to sale price. It’s important to note the discount you’re able to negotiate off the list price. How does this measure up to the comparable properties’ list versus sale pricing (divide each home’s list price by the sale price)? Ideally, you’d like to see average or above average savings when you compare your property savings to that of similar homes in the area.
- Can you afford it? Regardless of the deal you can negotiate on a property, if it stretches you beyond your financial means, you shouldn’t even be considering making this purchase. The best way to ensure you’re only looking at properties you can afford is to get a preapproval from your mortgage professional.
Do you have questions about how to ensure you negotiate the best deal when buying a home? Answers are just a call or email away!