Everyone is looking for a deal, but how do we know when we have found one?
In most cases, you won't realize how great a deal you have found until after you have made your purchase and the market goes up. That being said there are some clues to help you search out a good deal.
3 ways to find a deal
Look for days on the market. The longer the home has been on the market the more likely you are to get a deal.
Homes that don't show well online. Bad photos can cause people to skip over a listing making it less competitive in the market allowing you to score a deal.
Look for homes that need some work. Many buyers want move-in ready homes and if you're not afraid to put in a little elbow grease you may be able to find a great deal.
Even if you find a property that fulfills your needs and meets all 3 of the above criteria you still won’t know you got a deal until the dust settles and the market goes up.
What about price reductions?
Yes, a price reduction can indicate a seller is more motivated but not always. Often a price reduction is because the seller has realized the property is priced above market value and needs to come down to reflect what the market value is.
Keep in mind: Price is a marketing strategy and sometimes homes can be priced intentionally above or often below market value. Price changes can reflect a change in a sellers marketing strategy and an attempt to get the right offer on their home.
The Bottom Line
The bottom line is this. Real Estate has been and continues to be a solid investment. Consider this, there was a market correction in 2017 and if you made a purchase in April 2017, by September that year you may have been thinking you made a mistake. Yet, within 3 years your investment was growing again and today you’ve easily made $200-$300k on your investment.
Source: TRREB Home Price Index
Looking for answers?
We study homes and prices every day. Our family team will keep you informed and up to date on current market trends, allowing you to make informed decisions when buying and selling. This is a partnership and our goal is to be with you every step of the way making the buying and selling process easy and enjoyable.