Do “Good Deals” Exist in Real Estate? It’s All About Compromise
It is human nature to want a good deal, but do “good deals” really exist in real estate? The answer isn’t a simple yes or no. The reality is you are very unlikely to find a move-in ready home in a great neighbourhood with modern finishes that is priced below market value – now that would be a good deal!
Since we all have different wish lists when house hunting, what makes a home a “good deal” is different for everyone. If you’re willing to compromise on a key aspect of the home, such as location, neighbourhood, and/or condition, you will likely be able to save money on the home price. Getting a “good deal” really just means you are compromising in a certain area to save money on your home. Compromising isn’t a bad thing; just like most things in life, there is give-and-take.
Here are the main areas you could compromise on to save money on your home price:
Compromise: It is Outside the City Centre
Moving to the surrounding cities or towns bordering the major city centre will save you money on your home price. These areas are less popular to live in, but they may not be that way forever. It is the bordering towns that often see new developers building homes and attracting more businesses. An increase in town population requires the town to put in more infrastructure like schools and public transit. Eventually, most little towns become moderate-sized cities over time. In the short term, you may have a longer commute and less access to amenities, but in the long run, your home value may increase exponentially.
Compromise: The Neighbourhood Isn’t the Best
Homes that are only a few streets apart can attract different home prices. Perhaps the homes on one street are older, and on the other they are new. Perhaps one street is next to a busy road, and the other is on a quiet court. Perhaps one home is on a street where crime is more likely to occur, and the other is not. Compromising on the neighbourhood can save you money in the short term, but in general, neighbourhoods take time to improve and lose certain stigmas.
Compromise: The Home Needs TLC
Home improvement can be cosmetic, like swapping carpet for laminate flooring. Home improvement can also be structural, like a new foundation. Depending on the amount of TLC required to fix a home to your liking, you may want to consider purchasing a fixer-upper to take advantage of the lower price point and potential up-swing when you go to sell the home. If you have the skills to do some or all the repairs yourself, even better! Just be sure to do your research in advance on how much the home renovations will cost you. And as always, opt for a home inspection to ensure there are no underlying issues that might surprise you (and your wallet) later.
Do you need help finding a home? Purplebricks is here to help.
If you’re ready to take the next step and find a REALTOR® to help you look, visit Purplebricks.ca today or give us a call at 1-855-348-1820 and we’ll get you started.