One of the basic principles of a free-market economy is a drop in price when the supply is high and the demand is low, as well as vice versa.
The same principle can be applied to a greengrocer selling apples on a farmer’s market and to an individual selling a piece of real estate.
As markets tend to fluctuate, it might be difficult to afford the home of your dreams when there are not enough houses on the market.
To add to the trouble, the apartments and houses that suit your interior and exterior décor preferences are often overpriced so it is good to know a thing or two about the present state of the real estate market.
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Stick to your preplanned budget
There are many hidden costs of buying a piece of real estate, especially if you’re doing this for the first time in your life.
Finding a solid realtor will help you predict most of the costs but they cannot prevent you from overspending.
Namely, before you start hunting for the house or apartment of your dreams, you need to set out a budget and stick to it throughout the purchase.
Knowing exactly how much money you can afford to spend will help you filter out unrealistic targets right from the start.
Be prepared to act quickly!
As we have mentioned in the introduction, the real estate market is highly fluid, not to say volatile.
You might spend months and even years searching for the perfect house but in the end, you might be forced to make the decision to buy it within minutes.
The likelihood that someone else out there has the same list of things they want to see in a new home is high, so be prepared to act quickly!
Also, don’t fall for the oldest trick in the book often used by fraudulent real estate agents, that “they have other people coming to see the house, so you need to make the decision fast.”
Consider different home designs
Most prospective homeowners think that the biggest dilemma of finding the right piece of property is whether they want a house or an apartment.
However, agencies like Statesman Homes which help people find their dream home, point out that there are several types of home designs.
Family homes are most sought after, with villas, splits, and double stories home not lagging far behind.
In the end, it all comes down to your individual needs (do you have a large family, do you own a pet, do you live alone, where is your office, etc.).
What are you ready to sacrifice?
We have pointed out earlier that every buyer has a list of things they want to see in their new home.
For some people, everything above the 5th floor is too high and some folks want a house with a view or they won’t go to see it at all.
Although some of these stipulations might seem odd or unrealistic, you should not give up on them. However, finding the dream home means that you will have to be ready to sacrifice at least one item from the list.
Perhaps you’ll find the ideal house but it won’t be in the neighborhood you originally planned to settle in.
In this case, you can explore and research that particular neighborhood; it might turn out that is has better access to education and work that the area you originally planned to move in.
Don’t bid low
It is only natural that we enter the whole buying process with the intention of spending the lowest amount possible.
However, the present state of the global real estate market teaches us that the buyers’ pool is so vast that you are highly unlikely to be the only bidder.
Snapping a real estate for next to nothing is still possible but you should avoid placing a super low initial bid.
Once other interested see that you mean business and are willing to bid higher, they will probably move on to the next piece of real estate.
Consider remodeling costs
Playing with your dream home’s interior and exterior design is something that you are looking forward to the most.
However, the remodeling process begins even before you make the first down payment.
Namely, when looking at the house, take note of all the repairs and aesthetic work needed once you buy the house.
If you u come up with a rough figure, you can ask the realtor and the seller to lower the price because the home needs additional investment.
Broken down appliances, such as the kitchen hood can bring the final price down tens of hundreds of dollars, as well as tackily painted walls that will need repainting.
The today’s market is more vibrant than it was a mere decade ago. In order to afford your dream home in such circumstances, you need to be ready to (re)act fast, make compromises, and be a good negotiator.
Finally, you should take great care when it comes to choosing the right real estate agency.
