There’s not much scarier for a home buyer than looking back and thinking that they paid too much for a house.
This is likely the most expensive purchase you’ll ever make, so regret is definitely not the feeling you want to have later on down the road.
With that in mind, we have some tips that will allow you to sleep well in your new home, knowing that you didn’t overpay for a house.
How not to overpay for a house
Make a budget and stick to it
Remember, you don’t want to be house-poor, spending all of your money every month on a mortgage payment and not having anything left over for all of the fun that comes with living in New Orleans. Decide on a monthly note that you’re comfortable with and shop within your budget.
ALSO READ: How much house do you really need?
Use an agent that knows the neighborhoods you like
Part of the value of using an agent is that their job is to stay aware of current market conditions. They can tell you if prices are rising, falling, or staying flat. A good agent can also give you the inside scoop on recent sales. Did the seller contribute to buyer closing costs? Did they pay for a home warranty? Was there a repair allowance? These all factor into the actual value of a home and it’s not information that’s available in public records.
Make your offer based on comparable sales
There will always be that one person in the neighborhood that doesn’t care what the comps say, they are willing to pay whatever they need to in order to get the house they want. But that’s not a good strategy long term. Knowing what other homes are selling for allows you to make an educated offer. Ask your agent for comparable sales BEFORE you write that offer.
Always have an appraisal contingency
If you’re getting a mortgage loan, your lender is going to require an appraisal on the property. While there are buyers out there agreeing to pay the difference if the appraisal comes in lower than the contract price, you aren’t obligated to do so!
Need more advice on buying a home? Ask one of our exceptional New Orleans REALTORS.