Five Ways Bargain Hunting Can Backfire On Home Buyers

Who wouldn't want the best deal when it comes to a major investment like buying a home? The goal is to score the best home in the best neighborhood at the best price.

While that sounds like the perfect real estate situation, you may have to recognize that this means that you should have your eyes on FSBOs, short sales, foreclosures, or properties that's been sitting on online listings for too long.

While bargains may seem to be your only shot at achieving your goal, here are five ways that bargain hunting can actually backfire on home buyers according to Realty Times:

Low-balling sellers doesn't work

Just like you, sellers also consider their homes as major investments. Not only would they find low-balling insulting, sellers are putting their property on the market to net as much as possible. Since they are selling to profit, expect them to overprice their homes and be less open to negotiate. Make your offer reasonably and respectfully and expect to be given the same courtesy when it's time for you to sell your home.

Other buyers are getting professional help

While you do your house hunting yourself, some buyers are hiring professional real estate agents and closing deals to the houses you have your eyes on.

True bargains are rare

According to National Association for Realtors, a distressed home sold at a discounted price could impact how other properties sit on the market. A bank foreclosure or bank-approved short sale take time to close and you can't expect sellers to sell on a discount or be willing to negotiate if they are not on distress.

Homes that sit on the market without a price move are usually for a good reason which means that you can't risk waiting and wasting time without closing a deal.

The home needs work

Either a house is marketed "as is" which could mean that it needs work or well-maintained but outdated. Either way, that suggests that you will need to cash out money. Get a home inspection and have contractors bid on the repair work. If the price after repairs is similar to updated houses in the neighborhood, then you can go for it.

It's not a bargain if it doesn't suit your needs

You can buy a house at the cheapest price yet still find the need to look for a more suitable one that could meet your family's needs. Don't compromise square footage, number of rooms and baths for a bargain price.