How to Avoid Overpaying for a Fort Wayne Home (Hint: Know Home Value)
There are a lot of obstacles to overcome in the Fort Wayne home buying process but there are strategies and tips that you can follow to help you make the best decisions.
You don’t want to overpay for a Fort Wayne home that you and your family love; thankfully, there are a number of ways you can avoid doing so as long as you do your homework.
Understand: there are some Fort Wayne homes that are worth paying a little extra for but you need to know which ones are worth the extra money and time.
Below are a few tips to get you on your way to finding Fort Wayne home value en route to home ownership.
Do Your Research
Put on your investigative journalist hat and hit the pavement. Talk to neighbors, police officers, homeowner’s association, and city hall to get a view of the Fort Wayne area. This will give you an idea of crime, development plans, foreclosure and rising taxes in the Fort Wayne neighborhood to help you decide if this is the right one for you.
It’s your job to learn as much as you can about the area before you begin the search for the right Fort Wayne home.
Consider an Appraisal Contingency
When you make an offer on a Fort Wayne home your lender will order an appraisal be done on the property. You should add an appraisal contingency to your contract stating that the appraisal must come in at 5% or 10% of the sale price or you want out of the deal.
This means that if the appraiser tells you that you’d be overpaying by several thousand dollars you would have a few options: walk away from the home, negotiate for a better price, or ask your lender if you are able to borrow more money.
Typically the lender will only give you the value of the Fort Wayne home so be ready to walk or negotiate.
Study Comparable Fort Wayne Sales
One way to find a fair Fort Wayne home value in your area is to look at comparable homes in the Fort Wayne area and find out what they are selling for or what they sold for; this will give you a more accurate idea of the home value in the Fort Wayne market.
Especially take note of homes that recently sold in the area to get a clear view of actual values.
Be sure to look into at least three properties in your Fort Wayne area to get a fair estimate of the home value found in the neighborhood.
Shop Around
You wouldn’t go to a car lot and buy the first car you see, so why should you do that with a mortgage? You do not have to sign the first mortgage with the first lender you meet with; in fact you should visit several lenders and compare their fees and rates to find the one for you.
Do your research about each lender and how their mortgages are set up and how rates and fees are handled to find the one with the best rates for you.
You should remember that some Fort Wayne homes are worth paying a little more for if it’s truly one that you love; but in order to avoid overpaying for a Fort Wayne home follow these tips to help you.
Your best bet is to shop around for a mortgage that works well for you and give you the best rates and fees. Avoid the bidding war and stick to the limit you have set. If it seems like too much to pay for the home or the Fort Wayne home value is way lower than what the bid gets up to, then it’s time to walk away; there will be other homes.