How to know you’re getting a good deal?

If you’re thinking about buying a home in this crazy market, you may be asking yourself “How can I know if I’m getting a good deal on a home?” or “How can I know when the market is going to turn and if my new home will increase in value?” This is an important question to answer, especially if you are purchasing your first home. Most of the time it may seem like real estate transactions are too complicated to understand and there’s no way for you to know what fair market value is. However, there are a few ways you can use to gauge the market value of the home you are looking at.

From a statistical standpoint, it is possible to look at a home’s area market and see how values have gone up over time, historically. If you see that the area has consistently gone up several percentage points over time yearly, there is a chance that the trend will continue as that may be considered a more stable market. If you see that there has been a spike in home values but it was previously flat or even declining, that may be a market that some would say is possibly in a “bubble” and it’s anyone’s guess if or when that bubble could pop.

Another very important factor that is often considered when looking at a home’s value is “location, location, location.” You may have heard this before, but it isn’t just Realtors that say this. If you look at property in the most popular parts of town you will find more homes being sold than properties in the less popular parts of town. There are typically more amenities and favorable environments within close proximity to these popular or “central” properties which means people want to live close by for those reasons. Now, just because it is popular doesn’t mean it is necessarily right for you. If you prefer and value more space and a quiet country feel, chances are you’d not be looking for a home in the area’s hottest inner-city housing market.

As such, determining what areas are considered “central” to your needs will help put your mind at ease when purchasing your first home, knowing that it is located in an area that people want to be in. At the end of the day, if the home fits all of your needs and is being sold in accordance with local comps (comparable homes in the specified local area) then you’re probably getting a good deal. Knowing your budget ahead of time is so crucial to determine what kinds of homes you’ll need to even consider, so make sure you get pre-approved before taking time to get deep into your home search. I recommend Sabrina Lewis with Open Mortgage for your pre approval needs.

Having the right Realtor at your side through the process is also a great way to be sure that you’re able to have confidence in the buying process. If you’re looking to buy, sell or invest in the Tulsa area or Northeast Oklahoma, I’d love to serve you. Having me represent you as a buyer is completely free! You can reach me here and set up to jump on a phone or Zoom call!

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