You don’t want to overpay for a carton of milk. Why? Because it’s a waste of money. The same is true of your home, except the waste is exponentially multiplied.
One of the most common mistakes homebuyers make is paying too much for a home in their new neighborhood. Why is this an issue? Because when you buy the most expensive home on the street, your home’s value will typically increase at a slower rate than those around it.
Luckily, with a few steps, you can consider if the home you’re thinking about buying is worth the purchase price.
Look at Sales History
Sales history is a matter of public record. Take a look at the purchase price for similar homes in the area. These are homes with a comparable square footage and lot size. How do those purchase prices compare to the one you are considering?
But keep in mind, the Seattle area’s real estate market is still on an upswing. Sale prices from even two months ago might not reflect current home values.
Evaluate the Neighborhood Amenities
Certain amenities will almost always help increase the value of your home, whether you use them or not. For example, a highly rated school district can make your home more attractive to future buyers. Additionally, easy access to stores and restaurants can be a priority for future buyers.
Another sign your future home is in a good neighborhood is its proximity to a Starbucks. Studies have shown the value of homes within a two-block radius of a Starbucks increases exponentially.
Are There Substantial Eyesores?
Take a close look at the neighbors. While it’s possible that the un-kept home across the street could be fixed up before you’re ready to sell, don’t count on it. A hot market might make you overlook such an eyesore. When the market slows, these same eyesores can be off-putting to potential buyers, decreasing your opportunities of a good sale price.
The first step in the home buying process is always to get pre-approved. Reach out to me and my team today, let’s get you moving toward your dream house!