How Not to Overpay for a House When Buying a Home

When you can finally afford to buy a new house, all for yourself, it’s easy to become euphoric and excited, and don’t really mind spending some more, so you can get the comfort you are looking for your whole life. But, many beautiful houses have traps that may lead to spending significant amounts on them, just because the advertisement is good enough to make you believe it’s worth it.

But, let’s be honest. Paying a fair price is not something that happens every day. You need to spend a lot of time comparing prices and researching websites like Venterra Real Estate or others that cover your area, so you can get that fair price. But, is it worth the effort? It all depends on what do you need, and what do you expect.

Some people don’t have the time and nerves to buy an empty house and renovate it by themselves. That’s why on the market are often offered complete houses, with all the furniture and appliances that may come to your mind. And that’s the moment when the seller or the real estate agency increases the house, and the buyer overpays for it.

Also, overpaying can happen when you are on a hunt for a cheap house, and you want to buy it immediately, without inspecting it before, so you end up with a lot of expenses related to damages and other things that you couldn’t predict are coming.

So, before you buy and overpay a house, you need to do these things:

1. Compare the prices


You can find a good house, and if it seems that it’s overpriced, then you are probably right. So, the best way to do this is to compare the similar offers and see if the prices are very different.

Keep in mind that the neighborhood and location may change the price you think it’s fair, and additional equipment can do the same too. So, comparing the surface and levels is not enough. Take all the factors in mind when comparing similar homes, so you can determine if the first one was worth the demanded amount or not.

2. What is a fair price for you?


When you have plans, you know how much you can spend on them. So, if your vacation budget is limited, you are looking for those options. When you want to choose the destination, you know how much you can spend, so you balance between the accommodation and location.

If you intend to buy a house, you already know how much you can spend on it. So, set that limit, and see what the market has to offer to you. That’s the only way to find the perfect house for you, without even looking at those that don’t meet your criteria.

3. Don’t fall in love with a house


It’s just a building that can become your home, or not. Don’t fall in love with the looks, just like you don’t do that with the people around you. There is no such thing as a perfect home by a definition.

You are the one who makes it like that. So, if some house attracts you, but you can’t really afford it right now, you should simply say “goodbye” to it, and go for the next one. No one knows who will be their next love, and it’s the same about the properties. Maybe the real love is close in the same area, and you will miss it because you are blinded by this one. Avoid falling in love, and save money for more important things in your life.

4. Always have some money saved, just in case


Sometimes, what you consider as a fair price, and what it really is, doesn’t really match. So, our honest recommendation is to save more money, and have some amount by the side, so you can afford the home you want.

Our expectations aren’t always realistic, and we can’t hope that the seller will lower the price just because you want that. For example, if you are ready to pay $400,000 for a property, make sure you have at least $80,000 more saved, so you can afford the home you want. Sometimes the prices are negotiable, but sometimes not. Finding a new house is a journey you must be ready to start and complete, even though things won’t go as planned.

5. Work with an agent


Surely, the agents will charge some fee for the service, but it will be much lower than the overpayment. Working with a real estate agent is something that will save you a lot of headaches, and help you find the perfect location, neighborhood, price, and looks.

Surely you can be your own investigator, but if you leave that to a professional, you will save some money, and also get the property you’ve always dreamed of. Homebuyers are not always capable to make decisions when it comes to houses, so that’s why real estate agents are appreciated a lot. Just make sure you are hiring a good one because there are scammers among them too.

6. Start saving money on time


Sometimes it can be impossible to find a property for the fair price you want. The prices can fluctuate a lot, especially in times of crisis. You need to track that, and also, start saving money on time.

The loans are not always the best solution, and depending on your credit history, you may not get the amount you need. So, saving money, combined with your loans, can be the perfect way to find what do you really want and need.

The final words

Owning a house by yourself comes with additional expenses that you may not consider as important at the moment, but can be huge after you move. Make sure you are ready for all of that because it’s your responsibility from the first day on.

We really hope our tips will be useful for you as you hunt for your perfect house. And if you have to overpay it, make sure it’s an amount you are ready to pay.

About Carolyn Lang