Are you out looking to buy a home and searching for the absolute Best Deal available, or are you looking for the Right Deal? Do you think they are the same thing?
It has been my experience that there is a subtle, yet significant, difference between the "Best" deal and the "Right" deal. Buyers start out looking to land the absolute best deal. Makes sense,and it's my responsibility to help my clients get the best deal possible. The problem I see lies in the quest. Somehow the search for the right deal, the one that best suits their needs, is ignored.
Many times buyers will take on the roll of Captain Ahab and their pursuit of a home becomes a singular quest to land the best deal, irregardless of the consequences. They shrug off their own stated objectives and set off to see every distressed sale that comes up in their price range, certain that they will hook the deal of the century. This causes some to look in areas outside of their knowledge, moving them further into uncharted waters. Others still want to increase their price range in hopes of finding a whale of a deal for a package of sardines.
I completely understand wanting to get a "steal," but there might be unintended consequences.
For example if a home is "worth" 200K and you can buy it for 180K but it needs 30K in improvements is that a good deal? Or if it's worth 200K and you can buy it for 160K with only 20K of improvements needed is that a good deal if you don't have the 20K to make the improvements?
Focus more on a property that you can afford. And by afford, I mean ones that won't require more funds than you have available to become habitable. The amount of work can be subjective for sure. If you're like me, you're all thumbs and the only house "improvements" you're qualified to do relates to demolition! But, if you're like my father-in-law, there's not much you can't fix on your own. Plus, for the right situation, you might be able to get a loan that will allow you to finance some repairs.
So, here's what I think: The Right Deal is the Best Deal, but the Best "Deal" isn't always the Right Deal. If you're not able to discern the difference, then hopefully you're working with a realtor who can help.
Originally posted at www.matthewmoxhay.com