What does getting a "deal" on a home purchase mean to you?
Now that we have begun to enter into a buyer's market I have been hearing many prospective buyers talk about wanting to get a "deal" on their purchase. What exactly does that mean to you? Let's explore some of the "deal" options you may encounter.
This is the first thing most people think of when they think of getting a deal in real estate. They want to know that they purchased a house for far less than not only the appraised value but less than fair market value. In reality, these types of deals just happen when there is a foreclosure that has occurred or possibly someone that has a lot of equity that needs to sell quickly to keep for losing the home or has had a drastic life event. In any of these cases, you may get a "deal" but chances are the house is not move-in ready and will need a fair amount of repairs.
Sometimes getting a "deal" on your home purchase looks like having all of your closing costs paid by the seller. You may have to pay asking price, fair market value, but the seller has agreed to pay all of your closing costs. This is a big win in my book. Having the seller pay your closing costs can save $5,000 or more of your cash on hand. This will allow you to purchase new furniture or appliances or even just keep that money invested somewhere it will grow and make you more money!
Speaking of appliances, sometimes getting a "deal" means that the home comes furnished with a refrigerator, washer and dryer. Depending on where the seller is moving, it may be possible to negotiate these movables into staying as part of the sale. Have you priced those lately? These items are crazy expensive! If you don't have these items, this may be a great cost saver to you.
In a perfect world, as a home buyer, we will all get a home below appraised value, have the seller pay our closing costs and leave the refrigerator, washer and dryer!