How to avoid paying too much for a new home?

Priya and Rajiv, a newly married couple, was looking for a home in one of the metropolitan cities. Luckily, they both were transferred to the same city from their offices. After visiting quite a few houses, they both agreed on one apartment and contacted an owner to make the purchase.  The price mentioned by the owner was pretty more as compared to the other properties in the same area. However, they had to join the offices at the earliest and both of them were ‘fascinated’ to buy the apartment. Finally, they decided to pay the asked price and bought a home paying almost 20% more.

Here are some lessons to learn from this situation Priya and Rajiv. These tips will also keep you from overpaying for a new home.

  • Dig the well before you’re thirsty: If you are planning to relocate in a different city or even buying a home in the same locality, start your house-hunting in advance. If you have time on your hands, you can peacefully check out several options and avoid settling for an overpriced property because you didn’t had time.
  • Don’t be an emotional fool: The word ‘home’ always has a soft corner in the heart of a home-hunter. However, this soft corner can cost you huge money. Don’t let your emotions override your budget and common sense. The feeling of losing a home can make you pay more than a fair price. So, keep your head cool and stick to your budget firmly.
  • Know the price beforehand: Before you plan to visit a home, make sure you know the intended price of that property. If you find it unrealistic or exceeding your budget, drop the plan of a home tour altogether. This will save your time and keep you from falling for that unreasonably priced property.
  • Work with an estate agent: A real estate professional knows the true value of properties. Get them work for you. Your estate agent will negotiate the price with the homeowner and ensure that you don’t overpay for it.
  • Be ready to walk away: Showing over-enthusiasm to a homeowner can prove troublesome for you to close the deal at a fair price. If your homeowner knows that you will buy it by hook or crook, he will never negotiate the price. Your attitude should reflect that you will walk away if things don’t work out, and refrain yourself from paying unrealistic amount.
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