Many real estate investors are constantly looking for deals on the market to purchase homes at a low price. However, the current market has homes being sold at rising prices with multiple bids on one home. Below are three tips in order to purchase homes at good prices in this fast paced market.
Buy Before It’s On the Market
Currently, it can be difficult finding a good real estate deal when homes are not on the market for long. During this time in the economy, there are typically multiple bids on one home and it can go quickly. Real estate investors should find homes that are currently not on the market to avoid these bidding wars. Investors can drive around looking for homes that seem vacant and use public records to track down the owner. There are many homeowners who have homes that they are not currently considering selling but may no longer want the home. They could be landlords that no longer care to rent or homeowners that inherited the home and don’t know what to do with it. Homeowners might be willing to consider offers in these cases.
Purchasing Foreclosed Properties
Once homeowners can no longer pay their mortgage, the bank will typically foreclose on this home and list it on the market. Since banks do not want these types of assets on their books for long, they generally price fairly low. However, other home buyers may not consider purchasing foreclosures because of the amount of time it takes to purchase a foreclosed property. The property is likely to be vacant for up to years which may also warrant the property in need of some repairs. If real estate investors are willing to make improvements on these properties, most foreclosures will be a great investment.
Buy Immediately or Purchase Late
Although the market allows for many bidding wars, sometimes homeowners accept the first bid instead of waiting for the highest bid. If a real estate agent has the cash or is already pre-approved by the bank, it will be more easy to quickly purchase a home before a bidding war starts. Not only should real estate investors be looking for new homes recently on the market, but they should also be search for homes that have been on the market for a long time. These owners may be willing to sell at a better price because they are tired continually having their home. Other home buyers will not consider it because they think something may be wrong if it’s been on the market that long. Often, these homes were either on the market too long because it was priced too high to start with and now no one will look at it, not marketed well, or it needs improvements and no one is willing to take on the project.
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Photo Credit – Tanamera Construction