With an investment as large as a home, it's natural to aim to land the best house in a nice neighborhood for a really good price. But that puts you leaning towards the bargain bin.
While others end up successful buying a bargain home, it remains a rare event that can sometimes even put you on a balance. Here are 5 ways bargain hunting for homes can backfire according to Realty Times:
The home doesn't suit your needs
The best definition for a good buy is a property that meets all (not just most) of your family's needs; that encompass spaces, features, comfort, and function. Getting a property for a bargain price is actually useless if it doesn't come comfortable and functional - lacking in the number of bedrooms or baths.
A bad fit costs you later
If you go for a property for the sole reason that it's at a bargain price without considering your household's needs, you might end up spending more when you realize that you need to move out and find another place that has enough space, in a better condition, and nearer to work and the kids' school.
Bargains are rare
When you find a house that is priced significantly lower compared to others in the same area, then find out why because there should be a good reason for it. Look out for the house's condition and how it was maintained; yes you'll pay much lower for the house but it comes with no appliances or with so many needed repairs.
The home needs updating
Homes are priced lower than the market's value for a reason, and usually, it's because it needs updates and repairs. Assess and see if you are willing to pay for the repairs and how much everything will add up to bring the house to today's standards. There could be another property that is ready for move-in that costs cheaper than if you go through all the repairs with this bargain home.
You lose ground trying to lowball the seller
Sellers see this as an investment too, and trying to lowball them when they are less than willing to negotiate won't help you. With home prices now still below market highs, interest rates near historic lows, and with improving inventory in most areas, the best strategy is not to lowball the seller but offer a fair price for a property that will serve your household best.
