Michael Corbett's House-Hunting Tip: Shop High to Buy Low!
Best-selling author, real estate expert and "Extra's" Mansions and Millionaires host Michael Corbett gives you some hot tips on the best ways to buy a home -- all from his new book, "Before You Buy!"
This week's tip:
You have to shop high to buy low. Today, as prices are lower and sellers are sometimes getting anxious, always shop 10 percent higher than you really want to spend.
Start at the top of your price range. If you feel you can afford a home that is $400,000, then look at homes priced at $440,000. The reasoning is that in a cold or buyer's market, you will probably end up paying slightly under the asking price. There may be room to negotiate down to bring it into your price range, and you will still manage to stay within your budget.
Also, you must keep rising interest rates in mind. Waiting for the price of a house to drop when interest rates are getting higher will cost you. Even if a $400K house drops $25K in price, with a rate hike of 1 percent, it will cost you $78K more in interest over the life of the loan!
Find out more!
For more tips and guidelines, check out Corbett's book "Before You Buy!" on Amazon.com.