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3 Ways To Know You Didn't Get Ripped Off
A few weeks ago my 2 year old camera decided to stop working all together. I have to be in the top 5 list for thrifty shoppers in Loudoun so I went in to my 3 week long education mode of shopping sites, visiting stores, asking smart people, and then when it was time to pull the trigger on buying a camera I did what all thrifty shoppers do….. go to ebay.
Before it arrived I boasted to my friends what a great deal I had gotten and that I would be happy to let them know how it turns out. Well, last Thursday it arrived… I open up my new camera box to receive the fruit of my labor and there it was. A camera… that would have been cool if I would have purchased it 5 years ago…. SLOW , LARGE , and needing AA BATTERIES. So much for my great deal.
Well, when it comes to purchasing homes in a market when there are a lot of great deals out there, how can you rest at night knowing that you received a good deal and didn’t get ripped off?
This is actually a HUGE question so I will attempt to answer this with 3 tips I believe you find helpful and that I may expound upon in the future.
1. Don’t Purchase During Your First Time Out- I know that I will be put in Realtor time out for this one because there is nothing greater for a Realtor than a quick and easy transaction. But remember, this isn’t about me. This about you sleeping good at night and knowing you didn’t miss an opportunity.
It is sooooo important that you choose the neighborhood that you are going to live in for at least the next few years based on at least a little research. Pull the crime reports, check out the schools, talk to a few residents, find the nearest major roads, etc… Listen, it is always tempting to pull the trigger during a huge builder sale and sometimes you should. However, this is too big of a decision to make without a night of sleep between it.
2. Know That Specific Market- Apples and Apples, Oranges and Oranges… But when it comes to striking a deal you had better know the community you are buying in. Since most of you don’t have time to study real estate all day, you can call me. Now, the market in Northern VA is very diverse. Fannie Mae has marked it all as declining without looking at every neighborhood. If you are in Arlington, parts of it have declined in value and there are parts that haven’t declined at all. If you don’t know the market in Clarendon (part of Arlington) then your low ball offer could be offensive. In Ashburn, all neighborhoods have declined in value. However a 4,000 square foot single family home in Ashburn Farms is not comparable to a 4,000 square foot home in Brambleton. So don’t waste your time.
Before ever writing a contract on a home I spend time with my clients reviewing recent homes that have sold in the same community that are similar in size and features to the home they are writing on. Based upon the direction of the market, and the homes that have sold, NEVER ON WHAT THE SELLER IS ASKING, I advise my client as to what to offer the seller. It is my clients choice what they offer since at the end of the day they are the ones paying the mortgage. If you as a purchaser are educated on the specific market (city, region, neighborhood) that you are in and make an offer based upon that, it is rare that you will feel ripped off.
3. Learn To Say Shut-Up! - What is it about my stinking mind that just won’t let go and move on without a fight? I buy a car with complete enthusiasm. I drive off the lot and for the next 2 months kick myself because I question whether or not I should have gotten one with a built in GPS. It is the same with housing.
I have had sellers in this market who have received full price offers excited and then become upset because they feel that they could have possibly sold for more. If someone would have offered them 10k less they would have probably felt better about the deal. I have had tough transactions where the negotiations go back and forth and back and forth so long that my buyers start to question whether it is meant to be… However, when buyers get a seller to agree to an offer with little negotiation they leave feeling they could have gotten more out of them. Maybe they could have, maybe the could not have…. but living with an unsettled mind is a terrible way to live. When I find myself getting in to this thought process it is good to tell myself to ”SHUT UP!” It is a much better way to live.
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