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Today I’m going to cover how to know if it’s a “good deal” for first time home buyers.
After you have identified the home, or at least the neighborhood you are most interested in buying, a simple way to know if it’s priced right (or not!) and determine what the neighborhood is doing price-wise is to visit Zillow.com and type in the address – or just the street name.
On Zillow you can see what’s for sale, and (most important) what has sold recently. Determining what similar homes have sold for is a validity of a fair asking price for the home you want to purchase.
That’s just one simple step, and certainly there is more to determining if the deal is good, however it’s your first step.
Now price is just one criteria to determining value. The different options for purchasing your home can add (or subtract) from an asking price as well. For example, if the home you are looking at can only be purchased by a new bank loan, you’ll have more room to negotiate.
However, if the seller is willing to carry the financing for you, you can expect to not only save on financing points and upfront fees, but it adds considerable weight to the price. That’s because sellers who will finance their properties are more flexible than the bank on the corner. They have the ability to look at you, as a home buyer, individually and not as an “application”.