12 Things You Can Sacrifice When Buying A Home: Tips 10-12

Many homebuyers begin house hunting with a list of must-haves. This is particularly true for first-time buyers who have heard that theirs is a buyers market. I've notice that my younger buyers really expect a lot, then they're disappointed with what they find because they had read that the market's terrible. In many markets, the best homes for sale are now getting multiple offers and selling quickly. But even in a market where a buyer can definitely get more for his money, why should he pay for things he doesn't need? Just because you can afford to buy a 10-bedroom, 12-bathroom home with separate butler's quarters doesn't mean it's a good idea. Wouldn't you rather spend that extra money on something else? It's good to know what your deal-breakers are when you're looking for a home, but you should also be realistic about which things you don't need. Consider these 12 possible sacrifices, and then decide which you can give up to find a less expensive house that won't make you regret your purchase. In today's blog I will examine sacrifices 1-3

10. Single-family home

The old-school American dream involved a white picket fence and a home to call your own, but not every buyer needs that. Many buyers won't consider looking at homes called twins, or duplexes, which are attached in the middle but are two separate homes. The same goes for townhouses. With a townhouse, you can often get everything you want at your price range. Buyers can be reluctant because they have lived in apartments where you can hear your neighbors, but those apartment complexes have paper-thin walls. Thinking outside the single-family home can often mean a more updated home — even more space — for less. So don't automatically skip over townhouses, duplexes and condos.

11. A fixer-upper or project home

Lots of buyers just want to find a deal, they insist that they are willing to take on a project to get a deal. But when it comes to writing an offer, they don't want a deal. They want a home that requires absolutely nothing. Sure, a fixer-upper can be a bargain if you know what you're getting into. But generously estimate what it will cost to get that home ready to live in — and don't forget to include the cost of your time. Buyers should not to get too excited about foreclosures and short sales. Those homes are sold "as is," and the owners or others may have stripped the home of a lot of valuable things: appliances, plumbing and even kitchen cabinets.

12. Building amenities

Buyers think they need a lot of amenities in their high-rise condo building, but it's not always worth it to pay extra for those things. For example a luxury high rise may add money to the purchase price because of their high profile gym, but down the street might be a gm as well where membership is only $40/month.. Ammenities aren't always worth it

TIPS 1-3
TIPS 4-6
TIPS 7-9

How To Lowball

We all love getting a good deal, particularly in this economic climate. Whether you're saving 75 cents on a bag of frozen french fries or $5,000 on a new home, frugality is in.

The art of the lowball offer
To kick it off, let's talk about that all-important step after you've found your dream home: submitting the offer.
If you're following the numbers, you're probably aware that most U.S. markets still favor homebuyers but that trend is quickly changing. That may lead you to believe that sellers are desperate and will take any offer you throw at them. You'd be wrong. While sellers may be more willing to negotiate now than they were in 2006, for instance, you still must perfect the art of the lowball offer. The key is research. Your agent  must know everything about the market, the property, the seller and yourself.

The market: There is no such thing as a national real-estate market, which means all this talk of a buyers market may not even apply where you live. Your real-estate agent can find out whether comparable homes are selling quickly or slowly and at, above or below asking price.

The property: How does the price of the property compare with those of comparable homes? How long has the home been on the market? The longer it has been listed, the more likely the seller may be to entertain lower offers. If it has been on the market for months or even years and there have been no offers, at some point the seller is going to give up and either accept a much lower price or just resolve not to sell it.
Another factor is whether the home will require a lot of work, if you're willing to do the work, you can generally find good deals on fixer-uppers.

The seller: If sellers already have purchased another home or are starting a job in a new city and must sell quickly, that will affect their willingness to settle for less. Being flexible on the terms of a contract also can translate into a lower price. For example, if the seller plans to move to a new home still under construction, he might accept a lower price in return for a rent-back agreement allowing him to stay in the home for some period after closing.

Yourself: Are you in love with the house or with getting a good deal?
If the buyer is in love with the property they might want to offer something closer to market value in order to lock it up, particularly if it's in a market with intense buyer competition. If the buyer is just looking to get a great deal they might take a shot at whatever they think is in the lower hemisphere of fair and see how things develop. In my opinion, a buyer's best bet for finding a great deal is to buy a short-sale property, but you must be sure you're cut out for what is usually a long, difficult process. You can also get a bargain when buying a foreclosure, but  those homes are priced based on what is owed to the bank, not on their actual value.
If you're looking at a distressed property, be realistic about whether you can handle buying a property "as is." If you've never picked up a hammer, the money you save on the purchase may not be worth the hassle and expense of hiring contractors to make updates — or even to make the home livable.