What's The Cost Of A Good Deal And Are You Really Willing To Pay It?

What's The Cost Of A Good Deal And Are You Really Willing To Pay It?

Everybody wants to own something that has value.  Everybody wants to own something that appreciates, something that's worth more than what was paid.  Everybody wants to build up their net worth.  And I don't care what you say, everybody wants to own a home (granted they may want to own it free and clear with zero maintenance, always clean, and no property taxes!). 

The current economy has forced so many buying opportunities in front of us.  Interest rates are low and rents are high, an investor's dream right?  But even if you're not purchasing a home as an investor, all buyers say they want "a good deal."  But what's the cost of a good deal, and are you really willing to pay for it?

When buying a home, it's not just about the price.  For example, I recently sold a short sale home to a buyer who wanted to be in a particular neighborhood.  The house priced below market value, and it took almost four months from contract to closing.  Nowadays, four months is starting to seem average.  Although the buyer would have preferred a 30-day closing, he paid more in rent each month he was under contract, because he was going month-to-month, the bank did not pay all of his requested closing costs, and just before closing the seller removed items in the home that were supposed to convey (you know...those items that were nailed down).  This ended up costing my buyer additional money, money that he hadn't antipated spending, but it was the house that he wanted, in the neighborhood he wanted, and the school he wanted his son to attend.  In fact, he recently invited me over for dinner, and showed me his vision board from 10 years ago, and voila, there was the house that he just bought, and he said that he felt like he got a good deal. 

In another recent transaction, the buyer purchased a home in the neighborhood where she was renting.  My buyer was in her 50's and recently divorced.  She was one of those people who always had a captivating story to tell.  When she contacted me through my website, she told me that she was looking for a specific model in her neighborhood.  The home was living in had been rented to new tenants (I'm thinking the rents went up too), and she called me and said, "Screw it, I'm buying this other model.  It's not what I really want, but I've seen double-digit interest rates, and I'm not passing this up."  To her, the good deal was staying in the neighborhood that she had grown to love, and having her mortgage payment be less than what she was paying in rent.  She bought her home in as-is condition and had to do some minor work, but for her, it was a good deal.

So, when you're looking for a good deal, you also have to ask yourself if you're willing to pay for it.  You could pay for it in time, buy having the transaction drag out longer than you'd like.  You could pay for it by compromising on interior features to stay in the location that's ideal for you.  You could pay for it by paying more than the asking price.  I always ask the buyer when we meet, what constitutes a good deal for them.  Undoubtedly, the answer is all about the sales price.  So much for a new buyer to learn.  Call me at 703-623-8759 and I'll help you figure it out.

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Buying or Selling Real Estate in Del Ray or Old Town Alexandria VA? Looking for short sales in Alexandria Virginia? Contact Tamara Inzunza, Associate Broker of McEnearney Associates, Inc. Realtors to list and sell your home, or purchase a new home. I specialize in real estate homes for sale in the beautiful Alexandria VA communities of Old Town Alexandria, Del Ray, Kingstowne, and Manchester Lakes including condos, townhomes, and single-family homes for sale.

Call me at 703-623-8759.

Be sure to visit my website where you can Search MLS Listings of ALL Homes For Sale in Alexandria VA at www.MovingToNova.com/. If you're thinking about selling and would like to know how much your Alexandria VA home is worth, visit http://www.confidentialcma.com/ for a complimentary market analysis of your home. Not selling but curious about the homes for sale in your neighborhood, visit http://www.movingtonova.info/ for FREE Market Snapshot reports and stay informed whenever a home is listed or sold in your neighborhood.