The Real Deal: Tips to help you score your dream home
Lots of people look to buy a home in the Spring - but with the housing market booming, negotiating a deal isn't easy.
MORE: Ready to buy a new home, or need financial assistance? Here are some financial resources for homeowners.
News 12's consumer reporter Janice Lieberman has The Real Deal on what to do.
It's not uncommon to get into a bidding war on your dream home. The market is hot for the sellers and not for the buyers. What happens if your mortgage doesn't cover the higher price?
Laurie Murphy, now a homeowner, jumped through hoops to finally make a deal with the seller.
She says she was approved for an $825,000 mortage, but the seller would only agree to $875,000. The house was appraised at $825,000, which meant Murphy had to come up with $50,000 in cash or lose the deal.
With this crazy market - buyers willing to overbid, houses going without inspections, and cash deals happening - realtor Talia Gaglione says buyers need to lower their expecations.
"So, I think the biggest thing is kind of knowing what you're looking for. Understanding that you may have to come out of pocket a significant amount of money or maybe change your price point in your desires because you may not be getting that home that you are approved for," says Gaglione.
Here are some tips if you're buying a home:
Try not to get sucked into a bidding war and overpay for fear of missing out.
Can you afford to pay a higher price without depleting your savings or retirement accounts?
Don't forget closing costs.
Calculate how long you plan to stay in your home and if you can recoup your investment.