(112) Don't Overpay for Home: Save & Avoid Wasting Money Transcript, AI Summary & Key Points

00:03 next we're going to talk about real estate nine  tips to avoid overpaying for your home it is important to not overpay for your home because  doing so will cost you tens of thousands of dollars over the next 30 years if not more and  when homes often last you 100 plus years in life overall that Financial cost can be pretty large  the financial cost of overpaying for your home may be high especially if you get a larger mortgage  with a higher purchase price therefore higher interest and higher fees the resale value and

00:34 the  amount of appreciation may be also impacted so if you decide to sell the home in the future you  may not be able to sell it for as much as you would like to sell it for any home can have added  unexpected repair costs hidden away inside the walls or structure that are really difficult to  see without a detailed experienced inspector if you do not get the best purchase price when these  repair costs show themselves you will be surprised in a very unexpected not so fun way you will be  impacted unexpectedly although

01:06 avoidable because often times an inspector can identify problems as  you're purchasing which is definitely the time in which you want to find these problems not later  on down the road to avoid not overpaying for your home there are some tips that you can Implement  and here they are are first you're going to want to compare comps comparing the listing  price to other homes in the area with similar square footage number of bedrooms and number of  bathrooms we call this run the comps for your area definitely run the

01:41 comps for your area number  two values are always increasing in my eyes and so know that the value of your home will probably  increase over time because of inflation and the value of your home is also subjective your home  only has the value in which you give it the value is literally what people are willing to pay for  it and so so if you or others are willing to pay more for that property then it is valued higher  if people don't want to pay more or don't have money then they're not going to be willing to pay  as

02:13 much for that property and so that value of the home will just be based on what people are willing  to pay anything is possible and you may lose a home if you do not offer a high enough amount for  the purchase price be sure to offer what you think the home is valued at and offer the most that  you're willing to pay as to not lose out on a really good deal or or a really good property  that has minimal structural repairs you do not want to lose out on a great property by not taking  action or offering enough in your

02:42 purchase price offer try not to lose out on a good deal but also  be very patient to find the best deal for you it is okay if you miss out on a good deal because  the reality is there are so many properties in the world and you have a ton of options so don't  be tied into one specific property if one doesn't work out it was just not meant for you and it's  probably a blessing in disguise if the property has been new to the market or is sitting on the  market for 3 to four five weeks um you may be safer to offer less

03:18 money for the home if it's  been sitting on the market for a long time and you may be less apt to find competing bids against  you as well now be wary because I have purchased a property at least once in my life in which  it was sitting on the market for over a month and then all of a sudden that weekend multiple  offers come in the weekend that I wish to make my offer and so according to the realtor and the  um situation there were multiple offers and so I had to provide my highest and best offer if I  didn't want to

03:52 lose the property I really don't think this was the most accurate depiction of  events but the reality is it was a great deal and I am glad that I offered $5,000 more because  it's better to offer that 5,000 more and secure a great situation for yourself versus to miss out  on a good deal so in the reality is um while that purchase price is 57,000 uh instead of 52,000 it  was still a really good deal because the value of that home today just a few years later is over  120,000 so I've doubled my money so I've doubled my

04:30 money and it all required just $5,000 extra  the cost of doubling my money was just $5,000 and if I didn't buy I wouldn't have made that $60  plus th000 in just a few years in the end of the day I offered what I was comfortable offering  and I just let fate take over ended up getting the home because apparently my offer was 1,000  more than the other individuals and I guess they liked that I was a military veteran and reliable  and they really wanted to provide me my first home now the definition of being a

05:06 firsttime  homeowner is complicated I actually was by technicality not a first time home winner but  anyway um the whole situation was actually pretty funny in reality I had a home inspection and and  I found safety issues negotiations to the seller doing some minimal repairs and reality is that  5,000 extra I spent the seller did repairs and I saved a lot of that money by doing an inspection  so I basically secured the deal got everything under contract was the highest better was  able to purchase therefore and then

05:42 during the during the inspection process I was able to  get some negotiated repairs which was totally a win all was a done deal at that point there is  no point in nickling and diming deals just buy there is no point there is no point in there is  no point in nickling and diming deals just buy the more you buy and the earlier you buy the  better off you are number four do not lose a perfect home because of a few thousand just buy  get the deal if it's a great deal just buy it and getting the best deal is great but all

06:31 buyers  win in the long run just by the exception being if you're buying a super expensive property  and you have the inability to afford it that is literally the exception do not do that it  make sure you're buying something that you can't afford and always of course minimize the  structural repairs that are needed for the home the less repairs the better of course  number five five do not lose a good deal for silly reasons number six know there are an  abundance of other homes and options out there if one falls

07:09 through know that there are so many  others out there and honestly it's probably a good thing that this one fell through there may have  been an issue with it that you were unaware of so consider so consider that all good things  happen for a reason and if it doesn't happen it's probably a good thing as well you have tons  of options so many many others out there that you can purchase and there may be even better ones  out there you just need to be patient and find it number eight be willing to walk in negotiations  if

07:36 you're not willing to walk you will lose this leads to you getting taken advantage of and not  getting the best deal set your purchase price understand your Budget prior to making offers  and prior to even walking the home know what your budget is know what you can afford and then  negotiate and then even after you get the property under contract know that you can still negotiate  as I did within the inspection process that is why you do an inspection so you could find all the  issues and then use and then use that

08:06 knowledge to potentially get some repairs done before the  purchase or to get a lower purchase price during the inspection process negotiate and only budge  based on what you can afford and just do your best but also don't lose out on a good thing  of course number nine home purchases should be logical not emotional decisions make your  decision based on the numbers and the inspection report overpaying for your home well as noted  the value of a home is only what you give it you cannot overpay for home because if you

08:55 pay more  it is because you see the value in paying more if you walk away at certain prices you will not  overpay for a home the choice is on you and you know what value you place on each home and based  on that value you'd be willing to walk make this decision based on what You observe based on your  realtor findings and what they say and think and observe and also the findings of an inspector and  his inspection report pay what you can afford and pay only what you are willing to pay never overpay  for a home instead

09:33 find a better deal elsewhere if you overpay it's because you chose to do so and  it's because you probably deep down subconsciously think the value of the home is actually a little  higher than its listed amount but know that you have options and you could always find a different  deal are you really overpaying probably not it is my opinion that you would not walk the home if it  was overpriced you would not waste your time so if you are seeing a home it's probably because the  square footage the number of bedrooms the

10:09 number of bathrooms Etc are a reasonable price are within  a reasonable purchase price and overall something that you're looking for if the property was truly  overpriced you probably wouldn't visit the home in the first place so here are some of my secrets  to success overpaying for a home based on my logic is highly unlikely I feel homes are extremely  valuable assets so we should buy early often and in general as much as possible so overpaying makes  no sense in my eyes mathematically buy everything you can

10:51 regardless of the purchase price buy what  you can regardless of the purchase price going up or down a few thousand plus or minus whatever you  can afford just ensure that you're buying within your affordability and within your and within  your budget and try not to buy something that is too expensive for your means or way higher  than the average medium price for a home in that area mathematically purchasing in my eyes  is a win regardless of the plus or minus small amounts of money do not waste your time in

11:24 the  weeds for things that do not matter what matters is the condition of the major components and  and structure of the home the bones of the home especially with size the quantity of rooms then  quantity of bathrooms is there a garage what's the overall square footage or lot size what is  the location of the home these are the things that matter these things are a great indicator  of the value and the overall condition is most important make sure what you're buying is in good  condition do not waste your time

11:51 worrying about a few thousand here or there especially if you  have the money do not worry about awful paint or gardening that is cosmetic somebody can fix  it just contract out to resolve that issue just contract out to resolve that issue labor can fix  these things you know almost anything is fixable you just don't want to put structural repairs on  your plate because they can be more challenging more difficult more complicated and more costly  what matters is that your home is structurally sound and reliable this is

12:32 why inspections are  very Priceless they find things that you may miss and they may save you tons of hardship  and complications down the road and they also provide you power in negotiations inspections are  literally a must in my eyes and very helpful as well if you have any questions be sure to  put them in the below comment area and I would love to help you secure your best deal  and help you find successes in your life so definitely be sure to subscribe and check out my  other real estate videos as well as all the

13:04 tons of different videos that I have to really enhance  your businesses your successes and your overall path toward happiness for you and your family  if you're looking for a straighter path toward happiness for you and your family all it takes is  taking informed actions in the right direction so definitely be sure to join us on this journey  And subscribe below thank you so much and I'll talk to you all soon first you're going to  want to compare comps comparing the listing price to other homes in the area with

13:38 similar  square footage number of bedrooms and number of bathrooms uh um yeah we already did this okay [Music] okay