Cleveland Real Estate And More

How To Get A Great Deal When Buying A Home

Let's face it, everyone wants a deal when buying something, especially when it comes to a big ticket item like a home.  This post is for all the buyers out there that have been waiting for the right "deal" to come along, yet haven't been able to make a final buying decision. 

We must warn you though that we're not going to describe some crazy revolutionary 3 step program on how to buy a home on the cheap, like you may see some supposed "guru" do on late night tv.  However, we will give you some cold hard facts about the current market and a simple yet startling answer to this question at the end of this post ( yes, you must read this to get our answer ). 

To start, here are some things we know about the current real estate market:

1.     The entire real estate market is on sale right now. Based on reports from all the leading economists, the consensus is that the market has been depreciating and that many communities have seen home values go down to levels not seen in 5-10 years.  While we won't know until after the fact when the real estate bottom occurs, most markets are at or near the bottom, with some actually on the rise.

2. Mortgage rates are still at historic lows. With interest rates hovering at around 5%, money is cheap and buying a home has never been more in a buyer's favor.

3.     The Federal Tax Credit is in effect and will expire on June 30th. First-time buyers are eligible for up to $8000 and move up buyers can receive $6500 as well. In an unprecedented move,  the Federal government is actually paying people to buy homes, but you must be under contract by April 30th 2010 to qualify.

4.     Other items related to home buying are also being heavily discounted. When someone buys a home, a new car, furniture, electronics, and home improvements usually follow. As good fortune would have it, all of these things are "on sale" as well.

5.    The winter months bring great buying opportunities. Many homes currently listed have been on the market for a long time and sellers are anxious to sell soon before the spring, when the market will become flooded with new inventory, thus new competition.

So, with low home prices, low rates, motivated sellers, AND a large check from the government waiting for you, the answer to the question " How To Get A Great Deal When Buying A Home" is this:

BUY NOW!!!!!

Simple, understated, yet obvious. There has never been a better time to buy a home. So what are you waiting for? Don't let the best buying opportunity in generations pass you by.

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About The Authors:

This information is provided compliments of Amy and Dan Schuman, The Schuman Team Keller Williams Realty. The Schumans service both the East and West sides of Cleveland and have worked with numerous professional athletes, business owners, and executives who are relocating to Cleveland. They specialize in the Cleveland Ohio luxury home market and also enjoy working with first-time buyers as well.

If you are looking to buy or sell Cleveland real estate, including the surrounding suburbs, please contact the Schuman Team at 216-346-3235. 

SEE ALL CLEVELAND AREA HOMES FOR SALE BY CLICKING BELOW:

 CHECK OUT THE SCHUMAN TEAM'S AWARD-WINNING WEBSITE

How To Get A Great Deal When Buying A Home is the property of The Schuman Team and may not be duplicated or used without their written consent. ©Jan 2010 

Cleveland OH Real Estate - How Much Can I Get That Home For?

When working with buyers, we are often asked this question and the simple answer is this: we don't know!

I realize it may sound shocking that someone who professes to be a real estate professional would openly admit to not having an answer about something related to real estate, but the answer is complicated.

The final purchase price of a home depends on many variables, the most important being the sellers motivation. However, until the negotiating process has been played out, there really is no way to determine what a seller will accept for their home. In many cases, even the seller doesn't know what they will accept until they have received an offer and crunched the numbers.

I realize that buyers want some level of certainty and would feel more comfortable knowing everything up front.  Sure, it would be great if the listing you saw on line read, " great home, priced at $199,999, but the sellers said their bottom line is really $170,000."  Unfortunately, it just doesn't work that way. However, we do have some thoughts on finding a home's value that may be helpful.

To begin, market statistics mean alot as they are based on cold hard facts, not opinions.  Here are statistics from home sales over the last 6 months in some popular Eastern suburbs here in Cleveland. The figures below show the relationship between average final sales price vs. average final list price:

Beachwood -              $278,911 / $299,338 = 93.18%

Moreland Hills -          $316,632 / $334,611 = 94.63% 

Pepper Pike -            $338,072 / $358,562  = 94.29%

Orange -                   $245,242 / $268,198  = 91.44%

Solon -                     $287,006 / $306,145  = 93.75%

Twinsburg -               $211,594 / $221,345  = 95.59%

Based on the figures above, a home can expect to sell for about 94% of the final list price. The challenge can be to determine whether or not a home is price competitively, where it will likely receive an offer, or if it is overpriced and due to be reduced at some point in the future.

We recommend that you educate yourself on the market by seeing a lot of homes in your price range and follow the status of these homes. At some point, you will have seen enough homes that you will be able to walk into a home and know if it is a good value. However, other buyers will recognize this too, so if you find a great home at a great price, don't delay for risk of losing it. 

If you are a buyer expecting to get a home for 20% off list price, it probably won't happen on a home that is the nicest in it's price range. However, if a given home appears grossly overpriced based on comparing it to others you have seen, there certainly may be more negotiation room here.

One thing to note is that some sellers know their home is overpriced but just don't want to lower it. They may be open and expecting to negotiate, so don't let a price keep you from trying to buy a home that you really love.

More important than determining "how much can I get that home for", is using statistics and market knowledge to determine "how much a given home is worth to you", because that is really the question that you should be focusing on and can be answered prior to beginning negotiations.

When all is said and done, learning the market is important and having a knowledgeable agent to guide you throught the process is critical to your home buying success.

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About The Authors:

This information is provided compliments of Amy and Dan Schuman, The Schuman Team Keller Williams Realty. The Schumans service both the East and West sides of Cleveland and have worked with numerous professional athletes, business owners, and executives who are relocating to Cleveland. They specialize in the Cleveland Ohio luxury home market and also enjoy working with first-time buyers as well.

If you are looking to buy or sell Cleveland real estate, including the surrounding suburbs, please contact the Schuman Team at 216-346-3235. 

SEE ALL CLEVELAND AREA HOMES FOR SALE BY CLICKING BELOW:

 CHECK OUT THE SCHUMAN TEAM'S AWARD-WINNING WEBSITE

Cleveland OH real estate - How Much Can I Get That Home For? is the property of The Schuman Team and may not be duplicated or used without their written consent. ©Dec 2009    

Buying A Home In Cleveland - The Complete Guide Part 1 of 7 The Initial Consultation

If you are buying a home in Cleveland, you will find this series of 7 articles very helpful. We will focus on every step of the home buying process, from the first step of the initial consultation and putting together a game plan to closing, and everything in between. Buying a home can be complicated, especially if you are a first-time buyer, haven't bought in a long time, or are relocating to Cleveland and buying from out of state. However, if you are armed with the proper information up front, you can move forward with confidence and make the entire process a lot less stressful, and even have some fun.

While the information contained in this article and the rest of the series focuses specifically on those who are buying a home in Cleveland and the surrounding suburbs, many of the main ideas described here can be used to buy a home anywhere. Keep in mind that every geographic area has different nuances and some of the things we will discuss throughout this series may not be applicable to those living in other areas of the country or outside the U.S.  

The first step to buying a home in Cleveland is the initial consultation with a real estate agent. This does not have to be a lengthy or difficult process and usually only takes an hour or so. It is critical though to define your home buying goals up front and as detailed as possible so you can achieve success. While this may sound simple, many home buyers decide their first step should be to look at houses on line and go see them at an open house. While there is nothing wrong with driving around looking at homes, if you are serious about buying and want to make sure you don't make any costly mistakes, you should sit down with a real estate professional and map out a plan.

Think of it this way, if you were going on a 2 week vacation with your family, would you just pile everyone in the car and start driving? Probably not, so buying a home should be viewed the same way, you need to have a plan. In fact, using the above analogy of going on a trip, working with a real estate agent would be equivalent to having a high-end GPS system navigate you from start to finish. The best thing is that when  buying a home in Cleveland, the seller pays all real estate commissions, so hiring a buyer's agent does not cost you any money.

The initial consultation should be done in person, although those relocating to Cleveland may need to do it by phone. Regardless, this important first step is a time of fact gathering, so be prepared to be asked a lot of questions. In turn, you should feel comfortable asking questions as well, to make sure you and your agent are on the same page.  Remember, this is the beginning of what will hopefully be a successful long-term relationship, so asking questions and being able to speak openly and honestly with each other is important.

It is during this time that you will discuss things like time frame, if you need to sell before buying, your price range, and specifics about the desired location and type of home you are looking for. The more information your agent has, the easier it will be for them to find you that one special home. We realize that many home buyers just want to start seeing homes and prefer to skip this initial first step, but don't make this mistake. This first step is the most important and can dictate the success of your home buying experience.

If you would like to continue reading the Complete Guide To Buying A Home In Cleveland, click the link below to get to Step 2:

Getting Pre-Approved 

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About The Authors:

This information is provided compliments of Amy and Dan Schuman, The Schuman Team Keller Williams Realty. The Schumans have worked with numerous professional athletes, business owners, and those relocating to Cleveland from out of the area.

If you are considering buying a home in the Cleveland area, please contact the Schuman Team at 216-346-3235. 

VIEW ALL CLEVELAND HOMES FOR SALE BY CLICKING BELOW

 CHECK OUT THE SCHUMAN TEAM'S AWARD-WINNING WEBSITE

Buying A Home In Cleveland The Complete Guide Part 1 Initial Consultation is the property of The Schuman Team and may not be duplicated or used without their written consent. ©Aug 2009