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.

Five Reasons Your Property's Value Is Depreciating! Our Guide

Your home is undoubtedly one of your most significant assets and investment that you’ll have in life, and you want to ensure its value keeps appreciating. However, some things can depreciate your home’s value without you knowing. For this reason, you need to be aware of what can hurt your property value so that you can reap the ultimate reward of owning it, especially if you plan to sell it in the future. Keep in mind that property depreciation typically occurs when some areas of your home need improvement and repairs, but you don’t make the necessary fixes.


In this article, we will share five likely reasons your property’s value is depreciating: 

- No Proper Maintenance

Maintenance exists because it is mandatory to ensure the various components in your home remain in optimal performance. Otherwise, you could encounter problems that could lead to costly repairs or replacements down the road. 

- Not Adhering To Building Codes

Building codes are there for a reason, and local governing bodies likely set them up. Yet, some homeowners can’t be bothered to get a permit for home improvements, and they think they could get away with it. When they plan to sell the property and are notified that any home additions they made without a permit will not be counted as added square footage during a home appraisal, they will only realize their mistake.


Moreover, some homebuyers will know that some unpermitted home improvements have been made to the home, and they could use it to their advantage to get a lower price for the property. On top of that, if there are any code violations happening in the house, like burst pipes, you will have to cover the damage out of pocket as this won’t be covered by your homeowners’ insurance. 

- Old Kitchens & Bathrooms

It is often said that the kitchen is the heart of the home, and the bathrooms are crucial to your overall home value as well. However, if these two crucial areas look like they’ve come out of a history book, you can expect your home to have a lower value. Yet, this doesn’t mean you have to turn them into something extremely modern and sleek to keep up with the times. The least you can do is ensure that these areas are functional and up-to-date that they can accommodate current needs. Perhaps, you can install a new set of appliances, a fresh coat of paint, and a bidet. 

- Poor Workmanship

Poor workmanship is highly noticeable, which is why you shouldn’t waste your money on sub-standard materials. Remember that your home’s level of workmanship will play a significant role in your property’s overall quality score during a home appraisal.


So, if you see warped flooring or awkward home additions, don’t be surprised if you get a low appraisal. Before you put your home up for sale in the market, be sure to make the necessary changes so that you can increase your home’s value and get a higher return on investment! 

- Poor Landscaping

Poor landscaping, whether or not the people moving into your home have a green thumb, has a significant impact on your property value. Even if you’re not into landscaping yourself, you need to make sure that your landscaping is at least on the same wavelength as the houses in your neighbourhood. Remember that regular trimming of plants and mowing your lawn can go a long way! 

Conclusion

At this point, you now know that certain things can lower your property’s value without you knowing them, such as those mentioned above. Whether or not you’re selling your property, the goal is to ensure your investment is always appreciating in value and not the other way around!


If you’re looking for the best real estate agent to determine your property’s value, let me know at Chris Low! I specialize in buying and selling residential, commercial, and farm real estate in Brandon and Virden, Manitoba. Contact me today to see how I can help!

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