Top 10 tips for buying Hoboken real estate - #3

Continuing with our successful home buying tips!

Tip #3: Value, Value, Value

The days of 10-30% annual appreciation have passed. Home buyers in the 1970's and even 90's to early 2000, benefited tremendously from what seemed like ever appreciating home prices. Nowadays, we will most likely be looking at slow steady growth while guarding against the possibilities of falling prices, skyrocketing ARM rates and corporate layoffs that can dramatically affect your home values. The classic rule of buying the worst house in the best neighborhood still applies. If you buy with an eye towards improvement, you can customize the home to fit your needs. The saying, "make money buying a home, not selling one," should keep you focused on the long-term importance of the purchasing price.

Many times I'll show a buyer two similar units one is a higher price - the one that has the granite counters, and one has a lower price, the one competing with the granite counters. Sometimes buyers will see this and think, this place needs a lot of work! I'd rather try and get the one that's already renovated.. In a softer market this might not always be the best approach. If there is a $20,000 price difference and it would only cost you $8000 to renovate the kitchen then which is a better value? Plus remember, the unit that needs to upgrade the kitchen knows buyers want a newer more modern look and should therefore be a little more motivated on their price. Then, if you successfully negotiate a fair purchase price, your value instantly grows.

More on negotiation in the future..