Imagine you’ve been searching for a new property, and you happen across a low priced home that seems to fit all your criteria. Is the deal too good to be true? Well, maybe, maybe not. It’s possible that you’ve come across a hidden gem, but it’s also possible that you’re missing some key factors.
You may have just gotten lucky with your timing — in which case, congratulations. The market fluctuates all the time, and it could be that home prices in the area you’re looking at are currently at or near a trough. If you aren’t sure, an agent can help you figure out local market trends.
Speaking of the local market, you should also ask your agent about the surrounding community. Maybe it has a high crime rate, low rated schools, or a weak job market, in which case a higher priced home in a better area may be preferable. In addition, if the home is in a low priced neighborhood, it’s entirely possible that all the homes in the area are cheap, and this one isn’t an exception — it may even be priced too high.
But if you didn’t simply get lucky or end up in a low priced area, there may be something about the property that you’re not seeing. The home may look fine at a casual glance, but there could be hidden problems with the property’s condition. Sellers are supposed to disclose issues that they’re aware of, and they probably know something if they’re choosing to list low, but they may not know everything. An inspection can help you uncover these. It’s also possible the home price itself is reasonable, but you aren’t accounting for additional costs such as property taxes, insurance costs, or homeowners association fees.
Photo by Guilherme Stecanella on Unsplash