You’ve Found “The Home.” Now What?


The long, tiring search is over and you’ve kissed a lot of frogs. You've finally found your dream home and want to make an offer on the property. How do you know how much to offer and if you’re getting the most value for your money in this Brandon MB market?


The offer phase of purchasing a home isn’t always straightforward and you need to at least know the market on homes in that area so you can determine if you’ll be getting the fair market value for that home. Ask your real estate agent to go through neighborhood  comparable actives and solds with you.  This report should be helpful with the offer process.


Lowballing is a common term in the world of real estate. It means that you’re offering to buy the house for a number that’s far below the market value. You run the risk of insulting the seller and losing the home for good.


But, if you don’t know the fair market value of the home you could overpay by thousands of dollars. To zero in on the market value of the home you’ve chosen, you should know if you’re in a seller’s or buyer’s market.


A buyer’s market means that there are plenty of homes for sale, but a shortage of buyers. This gives you more power to bid lower than the asking price and to even ask the seller to pay for some or all of the closing costs. In a buyer’s market, you’ll find the seller more willing to negotiate.


If you’re in a seller’s market, there is a shortage of homes for sale and you’re likely to have several potential buyers making offers at the same time. A seller’s market is a little tougher to negotiate in because you may need to compete with other buyers.


It’s sometimes devastating to a potential home buyer when their good-faith offer is rejected – especially without a counter offer. This could happen when the seller receives many offers and your offer was much less than the others. Or, the seller may back off of your offer to see if he can eventually get a better one.


All may not be lost, even if your offer has been rejected by the seller. The seller may not have accepted any offer on the home and you may still have time to negotiate by moving rapidly with a higher offer. This may result in a bidding war that your real estate agent will need to help you with.


A buyer’s agent is extremely helpful if you’re a first-time home buyer. He or she will be familiar with the local market and be able to negotiate the best deal on your behalf. You’ll learn a lot during this process, which may be helpful to you when you decide to sell.


If you’re working in a seller’s market and there’s a real shortage of homes in the area, you may still be able to get your dream home. Find a home you really love in an area you’re interested in and write a letter to the homeowner.


It’s a true leap of faith to try this method, but it’s worked for thousands of buyers and it just might work for you. Even if you receive a “not interested” reply, at least you’ll know you tried.


Never rush to make an offer in any market until you’re sure the home is right for you. Unless you do the proper research on the home, you may be rushing in to a situation that you’ll later regret.


Whether you live in Brandon MB, Virden MB or you're searching for acreages in these surrounding areas, the search can be strenuous and time consuming.  You can call on me to be your trusted go to REALTOR®, with insight on all new listings and recent home sales, within our local real estate market.

Buying vs. Renting a Home - Which Is the Better Option

You will make many investments throughout your lifetimes, such as buying kitchen appliances and even a car. One of the most expensive investments you can ever make is purchasing a home, especially when buying one in high-demand areas like cities. This steep price may easily steer you away from ever thinking of owning a house, possibly causing you to rent over buying one. However, some people still believe that homeownership is a much better choice, especially in the long run. Then again, many still stand by renting as the better one.

The Most Critical Factor in Owning a Home

Are you torn between purchasing a home and renting one? If so, here are considerations you should make to understand whether or not you should buy or rent a home.

Homeownership Vs. Renting - Finances

The first thing that may have popped up in your mind when it comes to the most essential factor when owning a home is money. This, in many ways, is true. For example, for renters, the prospect of buying a home can be financially distraught, especially if moving from one place to the other. In many cases, if they were to buy a home, they will have to spend extra on costs such as commissions. These fees can range from a few hundred dollars to thousands of dollars, and even more so for individuals that move often. Another type of cost they will have to also deal with are mortgages, especially the penalty of exiting a mortgage early. The list goes on and on, from land transfer tax, property tax, and transactional costs.

 

In terms of finances, buying a home may seem too expensive to be worth the money. However, one should never base their purchasing decision on money alone, and you should consider the other factor: emotion.

Homeownership Vs. Renting - Emotions

In many cases, most homeowners did not buy a home because of financial reasons. If they were to do so, they would most likely not purchase a home at all. Instead, they did it for emotional reasons. In a sense, they invested their emotions into the purchase. 

 

Many homeowners, many of whom have experienced renting at least once, can proudly say that they will prefer to buy over rent. This is because of all the emotional benefits that come along with homeownership. For instance, many have experienced much lower stress levels because they know they have a stable and permanent residence. Homeownership has also been connected to improve healthcare, lower crime rates, and many other factors.

Conclusion

With all of that said, should you buy or rent a home? That will depend on what you value the most. If you put emotions first, then owning a home is the way to go. Nothing can beat having the peace of mind knowing one owns a permanent home that offers various benefits such as reduced stress, a safe environment to bring up children, and more. On the other hand, if you value finances, then renting might be the better option due to all the money saved. However, knowing that we are all emotional beings, homeownership will always be our best recommendation. With communities looking to establish safe environments to live in permanently, you cannot go wrong owning a home, especially when thinking about settling down for good.

 

Re/Max Valleyview Realty is a real estate agent that helps individuals sell and purchase residential, commercial, and farm real estate in Manitoba. If you are interested in buying a house, work with me today!


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