The average American home costs more than $1.4 million to buy and renovate, according to a study by real estate agent and blogger Andrew Zimmern.
For the average person, the average price tag on a new home is just over $200,000.
The average price of a house in the US is about $1 million, according the Center for Neighborhood Technology.
So, why is the average home price skyrocketing, and is there anything you can do to get a better deal?
First of all, people are more likely to buy if they think they are getting a better price than they would in the past, says Nick Fogg, president and CEO of the American Institute of Architects.
“If you have a real estate broker who says ‘I can get you $100,000 for your house’ they are probably not getting it,” says Fogg.
A home can be sold for more than the original purchase price, so the buyer is usually looking at a more lucrative deal than the previous owner.
Second, if you are living in an area where a rising price is common, then you may be more willing to give up your home in exchange for the potential to save on your monthly mortgage payments.
Third, many people are willing to accept lower prices than the average.
“They are not thinking ‘Hey, I can get $50,000 in this area for my house,'” says Fogle.
Fogg recommends paying off your mortgage or buying a house when you have the cash to do so.
“Thats a great time to do that.
You’re making your mortgage payments, and your monthly payments are going up, and you’re not going to have to do a lot of work to get those payments.”
He also suggests checking on the real estate market and making an offer.
“Don’t pay off your credit card and put your house up for sale,” he says.
If you have other options, Fogle says it’s important to find the best value.
“The market can be crazy.
If I buy this house, and I know the house is going to be worth $400,000, that’s not a good deal,” he explains.
He also recommends taking advantage of home-buying discounts.
“Some of the best deals are getting discounts on your down payment,” he said.
If that doesn’t work, he suggests checking out the houses in the area that are in the same neighborhood as your current home.
“You’re going to want to make an effort to find a house with a similar market value,” he recommends.
“It’s the opposite of the ‘it’s all about the price’ mentality.