News > 3 Ways to Spend Less for a Tempe Condo

There are two extremes buyers can take when they are in the market for a condo or a home. One extreme is a buyer that finds their "perfect" place and doesn't care about over paying, as long as they get that home. The opposite extreme is a buyer that just wants the best deal and will sacrifice time, flexibility and preferences in order to get that deal. Most buyers are in the middle of that spectrum, wanting to pay a fair price without sacrificing their preferences.

There are very good reasons to avoid over paying for a condo or home. First time homebuyers can build equity faster when they start at a lower price. Some buyers only plan to stay in a home for a short period (3-5 years) and don't want to lose money when they sell. Investors need a certain price to make a profit from a renter. So consider your goals when you start your home buying process and that will help you determine how you should approach the real estate buying process. If you are looking for a way to pay less, here are some suggestions:

Buy When Others Aren't

Although market forces make this different every year, the fourth quarter on average is the slowest selling season in the Tempe/Mesa/Chandler/Gilbert area. Sellers that have kept their condos on the market through the summer without a sale may now be more willing to bargain. You can often see this through a statistic called "Absorption Rate", or "Months of Inventory", that shows the number of months it would take for the current level of buyers would buy up all the current inventory. If that statistic moves higher, buying is slow and sellers are more numerous than normal.

Add Some Sweat Equity

Sure, you'll see some remodeled condos that look pretty and make you want to move right in. But don't overlook the dogs - the condos that haven't been remodeled but otherwise have good "bones" - location, good floorplan and good light. Here's where you can do a little calculating - how much would it cost to upgrade the flooring, or kitchen, or bathroom vs. buying an already updated condo? Sometimes all it takes is a bad paint job, the wrong cabinet color or 70's fixtures to make a condo less interesting to buyers, and these are the items that can easily be remedied by a new homeowner.

Wait for Desperate Sellers

Although this is not always true, some sellers that haven't sold their condos in a few months of being on the market start to lose a little hope in getting top dollar. You'll see the price of the property start to drop in cases like this, which is a good sign that a seller is flexible with the price. We give our clients guidance on how much lower you could try to go in an offer before you risk having the seller not respond to the offer at all.

Rarer cases where sellers may be more motivated include distressed properties and probate properties.

Combine Concessions with Price In Your Offer

Sometimes the seller can be resistant on a price drop for various reasons, including their own expectations on what their property is "worth." In cases like this, you can ask for for certain closing cost concessions, which are fees that you might normally pay at closing, like HOA fees, transfer fees, various mortgage fees and real estate agent commissions. These can add up for a buyer, and especially a first time home buyer, reducing your cash on hand.

Work With an Agent that Knows Condos

How much less should a condo sell for if it backs to a busier road? Are second floor condos going for the same price as first floor condos? What about the direction the balcony faces? We use our expertise and experience in listing and selling condos to help you find the best place at the right price.

Contact us to schedule a phone meeting to determine what your needs and goals are in buying your next place!

 

Though not guaranteed, information and statistics in this article have been acquired from sources believed to be reliable.

Related Links

• Tempe Condo Buyers Guide