Home Buying. . .When is a deal. . .Really a deal?

Many times a prospective home buyer relays to me that the only thing that they care about is "getting a deal". My question to them is, "how do you determine if you are getting a deal?" After a little thought. . .most reply that a deal is determined by how much we can "negotiate" the seller off of their list price. Is this the true identifier of a good "deal"? I say, that it could be the worst indicator of how well we did evaluating and negotiating a great price for a home. First, remember that listing prices on homes are not "created equally". . . some will be overpriced, some underpriced, and some just right. If you are considering an overpriced home. . .then yes, getting the seller down in price IS the best indicator of a deal. However, if you are considering an underpriced home. . . .paying the list price or slightly below could actually be a great deal. It's just more difficult to brag to your friends about the fantastic deal that you got on your home. You can't say "we got the seller down $20,000" or other similar comments. . . it doesn't feel right to say "we paid full price. . .but it was a great deal". . . most people cannot comprehend that possibility. Homes are frequently priced low for a number of reasons. . .distressed due to pending foreclosure, actual foreclosure, job loss, marriage changes, family changes, in a hurry to sell, etc. My experience has shown that it is easier to find a "well priced" home and negotiate reasonably for a great deal. . . than it is to expect the seller of an overpriced home to dramatically reduce their price. A good real estate agent will complete a market analysis to determine the value of a home prior to submitting an offer for their client. This is key to knowing how to negotiate and to set realistic expectations. For more information or to contact me with questions please visit
www.HomerunAtlanta.com