How A First Time Homebuyer Can Get A Good Deal

Consumer inquiries inspire many of the Tallahassee Real Estate Blog posts that we publish, and today’s blog post comes from a first time homebuyer question that was received this past weekend.

Both the typical first time homebuyer and experienced homebuyer alike often misunderstand the modern process for “getting a good deal,” so I have prepared these tips to ensure that you avoid the major pitfalls when buying a home.

As you will see from this first time homebuyer question, it is important to know what you should expect a good deal to be.

Are the houses on the “distressed list” all short sales? Or have they just been on the market longer? Is it likely that people on this list will take lower than the asking? – CJ

First Time Homebuyer Wants A Good Deal

This question shows some keen insight on the part of this first time homebuyer, and you can bet she will end up being a very smart homebuyer.

First of all, the distress properties list does not factor in time on the market, but it contains all of the Tallahassee MLS listings of short sales, foreclosures, and bank owned properties.

I encourage every first time homebuyer (who is not in a hurry to close) to become well acquainted with this list of distressed properties. Many of these properties can be purchased at great prices.

First Time Homebuyer Advice

The second part of her question shows a misunderstanding of where to find the best deals in the housing market. It appears as if she assumes that the best deals are the ones with the greatest discount between eventual sales price and current asking price.

If that were the case, we would all just list our homes at prices far above what they are worth, then buyers would think they are getting great buys when they see the huge discount.

That might work in furniture sales, but it no longer is an effective way to sell a home.

Since most first time homebuyer property searches begin with price, the home sellers that add a margin for negotiation to their asking price are pushing themselves out of the market.

Thus, the homes that are over-priced are not worth pursuing, because these sellers are not yet motivated enough to accept an offer at their home’s current value. This is why low-ball offers never work. Either the offer is for what the property is worth but the seller is not motivated, or the offer is far below what the property is worth. Either way, it’s a recipe for failure.

And the flip-side is this: If a home is priced to sell, then 100% of the ready-buyers will see it and there will be competition for the home.

Well priced homes often sell at or above asking price, even in a buyer’s market!

First Time Homebuyer References

The following list contains first time homebuyer articles that I have written in the past. The advice is sound, whether you are a first time homebuyer or a returning veteran of previous real estate markets.

• You Don’t Have To Be A Genius To Get A Great Buy On A Home
• 7 Ageless Tips On How To Buy A House
• How To Decide Whether To Buy A Home Or Wait?
• Recognizing The Need For A Buyer’s Agent
• Why Now Is Not The Time To Buy A Home
• How To Buy A Home That Needs Repairs
• How To Buy A Home When The Seller Will Not Negotiate

If you want to know more about ensuring a successful first time homebuyer experience, just drop me a note and we can schedule a time to review your specific wants and needs.