4 Simple Tips for Finding Incredible Real Estate Deals
The deciding factor to a good real estate deal always comes down to one thing: the price. Perhaps you have your eye on an ipoh property, probably a house or an apartment that can give you a bang for your buck. Whether you plan to flip the house, hold the property as a rental, or do something completely different, everything begins with a great deal.
Here are four simple tips that you can use to find better deals on real estate.
1. Consider buying a foreclosed property
Banks often foreclose properties. This is a given. When owners default on their mortgage payments, the lender will ultimately repossess the home that was the collateral and evict the occupants. Once the house is empty, the lender lists the house for sale on the market.
While it may seem cold-hearted to be bidding on someone else’s loss, it is inevitable. Once the house has been foreclosed, there is nothing that can be done for the previous owners. These properties can be some of the best deals you can find. Usually, banks want to let go of these foreclosed properties as soon as possible to recuperate their losses. Their interest is in lending money, but not managing property. They will even be willing to offer large discounts just to get the property off their hands and books.
However, do take heed that these properties are usually in state of disrepair. Their previous owners might have been financially struggling for some time, and the required maintenance and repairs have not been carried out. If you are willing to brave a rehab, you might be well compensated for it.
2. Be the first… or the last
The early bird gets the worm. This old adage holds true in the world of real estate. Thus, if you are looking to grab a great deal, be quick about it. Often, it is not the highest offer price that gets accepted, but simply the first. Do all you can to prepare yourself so that you can jump on any property at the first moment’s notice. For example, get pre-approval for a bank loan, or be proactive to get notification from real estate agents of websites that notify you of any new listing that hits the market.
Conversely, if you can’t be the first, be the last. As they say, he who laughs last laughs best. Another approach you can take to bag a great deal is to look for properties that have been on the market for a long time. When a property does not sell after a while, the listers will often be willing to sell it off for a hefty discount. They may have been making payments for the property for longer than they were willing, or perhaps all they want is to get rid of the property. You can take advantage of this to swoop in at the last moment to take the property off of their hands, doing both yourself and the seller a favor.
3. Approach absentee owners privately
In a hot real estate market, finding great deals can be difficult. This is because of the large number of people looking for homes at the same time. In a fast-growing neighborhood with high demand, a single property put on sale might get snapped up in a heartbeat. Having to deal with a dozen or more offers for the same property might put you at a disadvantage.
One of the best tactics real estate investors employ is to think out of the box. Instead of sticking to listing services, contact home owners directly and ask if they are considering to sell. Although this method might be touch-and-go, sometimes a good percentage of the owners you contact will be willing to entertain that option. If that is the case, why not reach out to them before they even list the home with a real estate agent or service?
Absentee owners are those that own a property but do not live there. You can drive around neighborhoods you are targeting and keep an eye out for vacant properties. Then, go look through the relevant public records to track down the owner. You can also look out for properties that are listed”for rent” and talk to the owners about buying it instead. Often, the owners might be landlords who can’t get the place rented out, or even owners who inherited the property and are just unsure of what to do with it.
4. Look at a lot of deals
One thing you need to understand about real estate is that it is largely a numbers game. You have to kiss a lot of frogs to find your prince. Unless you are one of the lucky people that bag a deal the first instance you try, chances are, you’re going to have to look at a large number of properties before you find “the one”.
Think of it as an inverted triangle, or a funnel. You might come up with numerous leads at the top, but only a few will come out at the bottom. Therefore, you need to optimize your methods of filtering the leads to improve each aspect of the funnel, which will include the quality and number of input leads at the top. For example, your agent may send you 100 possible properties. You take this 100 and scrutinize each one and end up with 10 that show promise. You make an offer on 5 of them, and only 1 is accepted. Imagine if you want to buy 2 properties. You would have to go back to your funnel and increase the input leads. Again, it’s all a numbers game
Whether you want to purchase a home for yourself, buy an investment property, or you want to buy real estate for any other reason, remember this: you make money the moment you buy. If you want to make an immediate profit with your property, you must find great real estate deals.