Whether you are looking at buying your first home or are an experienced real estate investor, you always want a great deal. Purchasing real estate can be a cash-intensive project. Therefore, it pays to do your homework well to find a property that will help you accomplish your goals, be it owning a family home or an investment property.
Read on for four tips that you can use to find great real estate deals.
Look for Bank Foreclosure Properties
Applying for mortgages is one of the paths most people opt for on their road to homeownership. However, life happens and sometimes, a mortgage can end up weighing down the homeowner. When a homeowner cannot pay his or her mortgage, the bank can move in and repossess the property through a process known as foreclosure.
Savvy real estate investors are always looking for foreclosure homes, and for good reasons. These homes are typically available at great prices, especially if they are in dire need of fixing. Banks are in the business of lending money and not managing properties. Therefore, they are usually eager to dispose of foreclosure properties so that they can recoup their investments. This is why they can accept prices lower than the real market value of the foreclosed properties.
Banks usually use local real estate agents to list their foreclosed properties. Talk with local agents to find out whether there are any foreclosed properties in the areas you are interested in buying.
Make the First or Last Offer
By the time property owners put their homes on sale, they are usually in dire need of cash. In real estate, timing is everything. Most of the time, it’s not the person with the highest offer that gets a properly. Rather, it is the person who makes the first reasonable offer.
If you are looking for a great real estate deal, be ready to put the money down when an opportunity presents itself. Therefore, get pre-approved for a mortgage by a reputable lender and be on the lookout for new properties that are listed on the market. Whenever you spot a new listing that meets your criteria, check it out quickly.
Some deals can only happen when you have money at hand. This is why it is important to know how much loan you can secure from a bank to purchase a property.
Conversely, you can save money on properties by checking those that have been on the market for too long. Most of the time, the sellers would be willing to accept a lower offer, especially if they still have outstanding mortgage payments.
Approach Property Sellers Privately
When the real estate market is booming, it can be difficult to find properties at great bargains. This is because the demand for properties on sale far outweighs the supply. For example, in some neighborhoods, single houses on sale get more than a dozen offers a week. During such times, sellers have the upper hand since they are getting multiple offers.
To find great deals, you have to go out of your way to look for properties not found on multiple listing services. This means identifying potential homes for sale and contacting the owners directly. At any time, a couple of property owners may be entertaining to sell. You can get a great offer from an owner than going through a real estate agent.
Absentee owners are the best group of people to approach. These are property owners who don’t live there or can be landlords looking to exit from the rental market. If you think outside the box, you can easily find such owners.
Here are a couple of tips to try:
- Check Craigslist for mom-and-pop landlords that are renting, but express to them you would be interested in buying
- Use a public record aggregate list site like ListSource.com to find the contact details of absentee property owners
- Drive around the neighborhoods looking for vacant homes and use online public records to track their owners.
Look for Deals from Multiple Sources
Finding good real estate deals is all a numbers game. Usually, you will have to go through dozens of properties before you can find one at a great price. Do not be in a hurry to purchase a property. Otherwise, you are likely to end up paying above market price for it.
Look at different sources to find potential properties you can buy. Here are some sources you can look into:
- Ask for leads from multiple real estate agents
- Let your colleagues and acquaintances know that you are looking to buy property
- Check the courthouse noticeboard regularly for announcements of upcoming foreclosures
- Do direct marketing to property owners
Getting good real estate deals is all a numbers game. The more you put in the effort by searching where people are not, the greater your chances of finding great deals.