3 Ways to Get the Best Deal When Buying Real Estate in 2018
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2018 has been the lowest inventory housing market on record in Rhode Island and most of the United States. At the same time, we have favorable mortgage rates which are still dipping below industry norms and an economy that has been the best we have seen in over 17 years! Let’s mix all of those ingredients together and we have a serious supply and demand issue!
In price ranges between $150,000 to $600,000 we are seeing multiple buyers for every one income home listed. Prices have increased well over 20% during the past 2 to 3 years and are continuing in an upward trend for the foreseeable future!
In this short blog, we are going to discuss 3 ways to get the best deal when buying real estate in 2018! These tips are not to be taken lightly and while it will still take persistence, when you follow these, you will ultimately succeed!
TIP #1! Educate yourself on the market! WAIT! STOP PRETENDING TO KNOW IT ALL!!! The media has the housing market wrong, as well as most buyers, sellers, and your friend 2 cubicles down that failed her real estate exam. We interviewed the top ranked housing economist who explains in detail what is happening and where we expect it to go! Check out the quick video above!
SOLUTION: Watch video!
TIP #2! Ditch the IDX, a.k.a. the Internet Data Exchange! Consumers best recognize this as Zillow, Trulia, Homes, and other third party websites. Here are why these sites are hurting you more than helping!
- Homes listed as active are already pending and unavailable! Your hopes crash down!!!
- You click for “more info” and that site sells your agent to 1 to 4 agents.
- New homes that hit will take several hours to a couple of days to populate on some sites! In this market, homes are selling when they hit!!!
SOLUTION: See Tip #3 – Connect to MLS using a buyers agent that represents you.
TIP #3! Stop going directly to listing agent! Daily we hear and see buyers make the same vital mistake! Some buyers believe that by going to the listing agent they will “get a better price” when buying real estate. This is the furthest from the truth and here are some reasons why!
- The listing agent works directly for the seller and has the sole job of getting the seller top dollar. You will be unrepresented throughout the transaction.
- “The listing agent can cut their commission to make it work!” This is highly unlikely as each transaction has 2 sides, meaning the buyer’s side is considered one sale and has about 175 steps to complete a transaction, while the selling side has 183 steps in order to finalize a sale. Brokerages also fee their agents for each side of the sale making it highly unlikely for an agent with time and costs to “cut their fee.” Be sure to check out the quick video above.
SOLUTION: Hire a buyers agent to consult you through the process and negotiate on your behalf. Why?
- A buyers agent will educate you on the market and will allow you access to their MLS which will give you the most accurate and latest homes that are listing!
- Your buyers agent when also a heavy listing agent or in a team of agents will know which listings are coming on before they hit the market so you are “in the know” and have an opportunity to see them before they sell!
- A buyers agent owes you confidentiality as well as the duty to always work in your best interest. Their only job is to find you what you want and at a fair pricing and terms.
- Your buyers agent will negotiate repair requests on a property for you!
- Your buyers agent will watch your back and protect your deposit!
- Your buyers agent will supply you with their network of mortgage companies, law firms, title companies, home inspectors, contractors, and more, which will ultimately save you time and money.
Even if you are a seasoned veteran and have purchased several homes in the past, we are in a very unique market in 2018 and it requires professional guidance and service. It will save you money, allow you less of a hassle, and will ultimately get you to your goal and many times free of charge!
For more Information
To learn more about buying or selling a home, or to contact Emilio DiSpirito directly, visit www.MyDreamHomeNow.com.