There are too many articles and blogs regarding purchasing a home with lists of tips, hints and advice so I wont bore any one with repeats however; I want to share this experience to prevent anyone else from over paying!
We found a home that was 1871 sgft, 3 bedroom, 1 1/2 baths, unfinished basement, 2 car garage, .25 acre in backyard and was built in 2000. They listed the home for 185k and being as my husband and I are first time home buyers we sought the help of a relator. We didn't think much about the asking price, we were excited there was one giant plus of solar panels which we assumed was why they were asking 185k for the home.
Now, after finding out the panels are leased (click here to read Solar City leasing SCAM) I was curious how they came up with 185k. After a long talk with our relator she offered to do a standard CMA which is what they should have done before putting it on the market. When I received the CMA analysis I was confused as 5-6 homes in the same area sold within the last 8 months with more sqft and built earlier (anywhere from 2007-2010) and were selling for 130k-158k; where did 185k come from?
An appraisal most likely would have shown that the home was not worth 185k however, we would have had to pay 400 dollars to get that appraisal and we've already paid 300 for a home inspection so we would be out nearly a grand to discover this home was a money pit. One thing I noticed after reading the CMA report is that many of the homes were put on the market for way higher but eventually sold for way less. One giant tip I must pass on is do some research and make sure they are not pumping the price of the home up to dump onto you.
Trulia has a wonderful area on the listing of a home that shows you comparable prices in the general neighborhood however, they do not update their systems frequently so a home may say for sale but is actually gone... be careful with that.
Find a good real estate website for your state and use that, in Colorado coloproperty.com is great as they update their system daily!
Don't be afraid to offer less even if your relator is saying to offer full price! Heck that's how they get paid... off what the home sells for so don't be afraid to offer less if you see fit.
Lastly, if you have a cool relator... ask them to do a CMA report on a property. Ours did it in less than 20 minutes so don't be shy asking for their knowledge to be shared. And whatever you do, get a home inspection done no matter how new the home is! You can use the damages to your advantage when it comes to lowering the price. Be safe everyone and good luck on your hunt for your dream home.
Curious more on what CMA is click here.
Visit the archive to read more SCAMS!
Have a scam you'd like to share please email me @ junipershea@gmail.com put SCAM in subject box.
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