Everyone loves a deal, but in the area of property they are as rare as hens’ teeth. That is not to say that they are not out there!
I try and purchase my possessions under “intrinsic worth”, but a lot of property asset managers aren’t certain how to go about doing so. As an investor, you have a massive advantage over most other buyers: you are not motivated by emotion (or at least you should not be), as you’re not searching for your family’s dream home. This means your property purchase needs to be a purely financial one and you ought to be in no rush to close a deal. Ensure that you know the market you are buying into such as the back of your hand. This way, you can detect in a matter of minutes if a property is undervalued and proceed to take it off the industry as rapidly as possible to prevent bidding against other buyers. I would also like to make a distinction between a deal and a property that’s merely affordable.
Some properties are more affordable than their competitors since they’re not as attractive, on a major road or back on a railway line. It’s not a bargain to get these properties. Search for properties that are of a similar or higher standard for their opponents, but are priced too low for whatever reason. Sometimes vendors do not have enough time to sit down and wait for the offers to roll in. They might be keen to market quickly for numerous reasons. Sometimes it’s because the parties are divorcing and at other times it’s because they’ve purchased another property and they will need to release the equity in their existing home. Of course there will not be a sign outside the property stating “Motivated Sellers!” And the agent is not likely to tell you all of the details, but I still enjoy asking the agent why the seller is selling and search for signs of eagerness to close the deal quickly.
For those who have a motivated seller in your hands, you can afford to provide a bit less than you would to secure the house. At any particular time, real estate agents have a small number of properties on their books which are termed ‘off market‘. These are owned by sellers that are interested in selling, but do not want to experience the expensive advertising process of selling a house publically. Sometimes people choose an off-market approach since they’re private and hate the notion of people traipsing through their houses. The key to finding out about these is in cultivating great relationships with local agents.
Due to the amount of properties we purchase each month for our customers, we are on the speed dial of the majority of local agents. In today’s more casual market, it is rare that a broker undervalues a property, but it does occur. Sometimes that happens because they are an out of area representative, not knowledgeable about the local territory. At other times they are young and inexperienced. Combine agent inexperience with worried vendors that are keen to prevent the public character of property sales, and you could bag the property for a deal. Nevertheless, it’s important that the able to understand that a well priced property and a inexpensive property since they’re extremely different.
Some properties are more affordable than their competitors since they’re not as attractive, on a major road or back on a railway line. It isn’t a bargain to purchase these properties. Recently in a hot property markets most land sold or leased out quickly.