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Buy Your Next Home For Less

ADVICE Author: Steve Dyment

Twongo. Groupon. Websites like these didn’t exist just a few years ago but now are becoming household phrases. It goes to show that everyone likes a deal. And what better to get a bargain on than real estate? After all, would you rather get 10% off your next pair of jeans or your next quarter million dollar property? If you are interested in getting the home that you want for a price that’s far less, check out some of these points:

Consider Ugly Ducklings

Ever noticed that cars are always washed, waxed and looking spotless on the car lot? Even used cars, some that are 10+ years old, have been detailed for hours to make them look like new. Dealers do this because they know that a vehicle’s first impression, will have a huge impact on desirability and the final sale price. The same is true with homes and the term is ‘curb appeal’ which refers to how the home looks to someone who just pulled up to it and is viewing it for the first time.

When hunting for deals, you can use this in reverse. If you have enough vision, consider homes that are scoring low in curb appeal – but can be remedied easily. Maybe it’s an unkept yard or a messy garage. Maybe it’s a terrible paint color, outdated light fixtures or 70′s red shag carpet. These undesirable features will often drive the masses away, and if you can see past this, there is an opportunity to capitalize and save big money.

Consider Properties that been on the Market for Awhile (ADOM)

ADOM or ‘average days on market’ is a real estate term for how long a property has been listed for sale. Usually (though not always) a property that has been listed for a long time (say 6-12 months or more) stands a better chance of going for a lower price.

Consider Already Reduced Properties

While it may seem counter-intuitive, studies have showed that recently reduced properties stand a better chance of moving further down in price. Be on the look out for a home that has been reduced already; chances are the vendor is motivated to make a sale.

Check the fine Print

Often listings will tip you off that there is greater room to negotiate. Phrases such as “must sell”, “motivated seller”, “leaving the country”, “imediate possession” all give you a good indication that a low offer stands a greater chance of being accepted.

Start with a Low(er) Bid

This is so simple but so often overlooked. If a property is listed at $450,000 and you are hoping to purchase it for $432k, don’t make that your first offer! $415,000 would usually be more appropriate. Give yourself and the seller room to ‘meet in the middle’ so that, if successful, the final negotiation leaves the end price right in the range you want.

House hunting should be exciting and an enjoyable process. At the same time, the stakes are high and it pays to exercise discipline. I encourage those that are looking and even those that will be looking in the near future, to put these steps into practice. I would love to hear how you made out.

Contact Information | Creative Mortgage Corp.
Name:	Steve Dyment
Company:	Creative Mortgage Corp.
City:	Kelowna
Province:	British Columbia
Country:	Canada
Phone:	(250) 470 9154
Email:	Email
Website:	http://www.creativemortgage.ca