Looking for real estate can be a daunting ordeal. You want to find the best deals and situations, but what do you need to look for to achieve these great deals? Well here are four tips that can help set up a great situation for buying real estate!
Who is selling the property?
While it is a sad event, there are time when people cannot keep up with the payments of a home and it becomes repossessed by the lender. This may be a bad situation for some, but a great opportunity for those looking for property to buy.
Once a bank reclaims property, they try to get rid of it as fast as they can, through listing the property with a local real estate agent. Keep your eyes open for these properties because the bank doesn’t want to keep tabs on property, they just want to manage the flow of money. Often when a bank is selling a property, they will include a large discount to help incentivize the sale making these some of the best deals you can come across.
A caution however, is necessary. These properties tend to be more in need of a repair due to the foreclosure process taking several years, and the property being unattended. Nevertheless this is still a great way to find some prime property. Give us a call at Kontor and we can give you the updates on foreclosed property and the options that are available!
When buying property, it is good to keep in mind that your not the only one looking for a great deal, meaning your sort of racing others for opportunities. It is sort of a turtle and the hare situation, however both roles in this case can be beneficial.
Generally people think that the highest offer on a property, whether commercial or residential, will get the property. This is not necessarily true however, generally the first offer on a property gets accepted. In saying that, it is beneficial to be the first to put an offer in on properties, so be the hare!
To achieve this, get pre-approval from a bank so there is no delay when you see a property you like. Another method is to have your real estate agent hook up some automatic email alerts that will let you know when new property hits the market. Just let our agents at Kontor know and we can have that all up and running!
Now for the flip side! Being a turtle and taking it slow has some equally beneficial opportunities. You can find great deals from being delved into the market for a long time by watching the properties that are having trouble selling. This will result in the sellers getting tired of paying the mortgage for that property and be eager to let it go, resulting also in entertaining most offers that are shot their way.
The US market has been hot lately, resulting in large amounts of offers on plenty of properties. This can become a problem because your offer will inevitably drown in the dozens of other offers and result in very limited attention and results.
A great tactic to get around this brick wall is not a sledgehammer but a ladder. Instead of throwing in an offer into the abyssal pool, why not contact the owner of the property directly? Or even better, contact owners of properties before they list their property and see if they would be willing to sell. Often times, many people will consider this as an option, and possibly result you being the first offer, the hare, and possibly the purchaser!
Following this tactic, aim your sights on properties thaat are empty and not being lived in. This is an absentee situation, that is often the result of an inherited home that is in limbo, or a landlord that doesn’t want to be involved in the property directly. Often absentee owners are more than willing to listen to a potential offer on their property because it will solve a potential dilemma for them, or just make their life easier. You can find out what properties might be absent by checking the public records list or by calling the landlords that are offering a “for rent” option on craigslist and inform them of your interest in purchasing.
Look and you will find
The most basic method, but always effective in many ways, is the game of hide and seek. Finding a good deal can take time and a lot of seeking, but eventually you will find one. It is always important to remember that this is a “numbers” game.
A good tactic is to create some sort of funnel system for this. As your reach further down the funnel, your requirements will become more specific and strict, resulting a a few potential options from a recent submission of leads supplied by your real estate agent. This will keep you focused on what your looking for, and help knock out those properties that just don’t have what you want. Adjust your funnel and the requirements as necessary to achieve the current needs, and along the way you will also develop some of your own understandings about your local market.
whether it is commercial real estate or residential real estate, business or a home for yourself, keep in mind you will make your money when you buy he property. Keep vigilant in your searching and give us a call or shoot us an email at Kontor. We have the knowledge and know-how to help keep you ahead of the curve.