Are You Afraid of Paying Too Much For Your New Home? Here's How RAMUS Realty Group Can Help You

Dated: July 10 2023

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Are you buying a home in central Pennsylvania right now? If so you may be scared and/or frustrated. Prices have risen dramatically in the past three years. Many of our houses are still attracting multiple offers and bidding wars - while they have slowed down a little in 2023 - are still here. Our office, RAMUS Realty Group, listed two properties the first week of July that went immediately into multiple offer situations. It's a great time to be a seller - but scary for home buyers who may be afraid they are overpaying for a property.

Purchasing a home is a significant financial decision, and ensuring that buyers pay a fair price for their dream house is of utmost importance. Real estate transactions can be complex, and buyers may find themselves uncertain about the true value of a property. This is where a knowledgeable and experienced real estate agent can play a vital role. In this article, we will explore how a real estate agent can protect buyers from overpaying and provide detailed ways in which they can safeguard their clients' interests.

Market Expertise:

One of the essential skills a real estate agent possesses is an in-depth knowledge of the local housing market. They constantly track market trends, recent sales, and the value of similar properties in the area. Armed with this information, agents can provide buyers with a comprehensive understanding of the market value of a house. By comparing recent sales data and analyzing market conditions, they can advise buyers on a fair offer price, preventing them from overpaying.

Your buyer's agent should be knowledgeable about what is going on with your local market and also national strends. Don't be afraid to ask lots of questions about recent sales and what your agent is seeing in the market. Ask them to show you what is currently on the market around the house you are interested in, and ask them if they have personally inspected houses in the area.

Comparative Market Analysis (CMA):

Real estate agents conduct comparative market analyses to evaluate the value of a property. They carefully analyze recently sold comparable properties, considering factors such as location, size, condition, amenities, and market demand. By conducting a CMA, agents can help buyers determine a realistic price range for a particular house, ensuring they do not exceed fair market value.

Agents do a CMA prior to listing a property and show the seller evidence of why the house should be listed at a particular price range. As a buyer, your buyer's agent should do the same thing for you. Before writing an offer, ask your agent to show you recent sales in the area to support your offer price. 

Negotiation Skills:

A skilled real estate agent excels in negotiation, working on behalf of the buyer to secure the best deal possible. Agents are well-versed in the art of bargaining and can skillfully navigate price negotiations with sellers and their agents. By advocating for the buyer's interests and leveraging their knowledge of the market, agents can prevent buyers from paying more than necessary.

Recently one of our agents interacted with a buyer's agent who brought us a very good - solid offer - on one of our listings. The offer was well written and just a tiny amount lower than listing price. Our listing agent thought it was a good offer and so did the seller. However, the buyer's agent was nervous it would not be accepted and let the listing agent know she was sorry it was not full price. She apologized for it being 1% lower than asking price and said "If it's not what the seller wants, please counteroffer. Don't let us lose this house." This is not a skilled negotiator!

She should have presented the offer and emphasized the strong points of it to the listing agent, not apologized. In response, seller countered at full asking price and the buyer took the deal. If the buyer's agent was more skilled, they may have gotten the buyer the house for a little less. 

Access to Off-Market Listings:

Experienced real estate agents often have access to off-market listings or properties that are not publicly advertised. These listings can present excellent opportunities for buyers to find properties that may not be as competitive in terms of pricing. By tapping into their network and industry connections, agents can help buyers explore these hidden gems, increasing the chances of finding a property at a reasonable price.

Here at RAMUS Realty Group we have over 16 years of clients in our database. Our broker has 24 years of experience and a database we can tap of tens of thousands of prospects. We have at our fingertips buyers and potential sellers who are not in the MLS system - yet. Use our off market expertise to tap into off market opportunities.

Property Evaluation and Inspection:

A real estate agent can help buyers assess the condition of a property and identify potential issues that may affect its value. While we are not professional home inspectors, we professionals who will thoroughly examine the property for any structural, mechanical, or safety concerns.

If significant issues are found, our agents can advise you on the potential impact on the property's value and negotiate repairs or price reductions accordingly. After the inspection, we will negotiate a price reduction, repairs to be done - or help you terminate the sale (if it was contingent on inspections). 

Appraisal Assistance:

During the mortgage approval process, lenders typically require an appraisal to verify the property's value. Real estate agents can assist buyers by providing them with relevant information and recent sales data that support the property's value. In case the appraisal comes in lower than the agreed-upon purchase price, our agents can negotiate with the seller to reach a fair resolution, avoiding the risk of overpaying.

Advice on Market Conditions:

Real estate agents stay up to date with market conditions and can advise buyers on whether it's a buyer's or seller's market. In a seller's market, where demand exceeds supply, agents can provide strategies to help buyers make competitive offers without significantly overpaying. In contrast, in a buyer's market, where supply exceeds demand, agents can guide buyers on leveraging market conditions to negotiate favorable prices.

Right now we are still in a seller's market, but this may change as we head into 2024. As of summer 2023 we still have a lack of good housing inventory on the market. Keep on top of things and always know what is going on by reading our market updates. We send our buyers regular updates on the market and properties that may meet their needs, so you always know what is going on with pricing and inventory. 

Working with a knowledgeable and experienced real estate agent provides buyers with invaluable guidance throughout the home buying process. From conducting market research and comparative analyses to skilled negotiation and thorough property evaluation, agents can protect buyers from overpaying for a house. By leveraging their expertise and industry connections, RAMUS Realty Group agents ensure that buyers make informed decisions and secure their dream home at a fair price. Call us today to see how we can help you! 

Blog author image

Erica Ramus, MRE

Erica Ramus is a Schuylkill County native and a graduate of St. Clair Area High School. She earned degrees at Armand Hammer United World College of the American West (I.B.), University of Delaware Hon....

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