How to Find & Negotiate Your Next Real Estate Property Bargain
Finding a good home or investment property requires having the right people in your corner who understands, and can represent you well to ensure you’re protected and you made a solid purchase.
Now when you visit certain neighborhoods you’d think the house must be maintained well since it’s located in an area with good property value or school district. Well, not exactly.
Once you go inside these homes you quickly realize you’re stepping into the 18th century era. Little updating has been done, much remodel is needed and on top of that they are looking for an exorbitant sales price.
Well – when it was time to find my place I searched online first of course and then eventually I found the one. The one meaning this beautiful home that reminded me of so many positive thoughts, I couldn’t wait to see it.
Well , it’s important to know when a house has stayed on the market for some time. In the 100+ day mark – there’s some questioning that should happen.
- Has this property seen any offers – where maybe a bid was placed and it moved to Pending and then the property went back to Active. You can find this detail on the listing. I’ll make sure to have another article on this soon.
- Does current market conditions show that it’s a buyers market or a seller’s market. Well, that makes a big difference because then competition is tough, people want to get the best deal since the supply is high. And if a seller is not willing to budge on their price, well let the Sit & Wait game begin.
- Are there any unknown or known issues? Did the inspection report uncover any major repair work needed that the seller doesn’t want to fix?
Don’t let this deter you as these are all leverage to negotiate.
I pretty much ran into most of the issues above whereas some major issues were happening at the property and they didn’t want to address it. So I sat on my decision to make an offer for quite awhile. Even went back to see the place a 2nd or 3rd time. I eventually told my agent I’m not interested – there’s too many issues and it’s not even worth the hassle, the money – it won’t be a good investment. But I knew I had time on my side – meaning the property had been sitting on the market for longer than the other home being sold.
Well – apparently the buyers were eager. So they fixed all the needed repairs which saved me a ton (which I made sure to voice what I wanted done). And I was able to negotiate a lower closing cost so that more money stays in my pocket in case I need to make any future repairs. This house was also listed way below market, which means when I make any other improvements and sale I have a chance at receiving an ROI. And by the way this is important. All the other homes I saw were pretty much maxed out at the amount you could sell it for. So if I have to come in and make updates and improvements there’s a big chance I won’t see that return.
Needless to say – your agent and in my case loan officer should work on your behalf and look out for you. If I didn’t have that then maybe I would have ended up with an Investment Dud. But not really because my family wouldn’t have allowed it. But you get my point.
Be on the lookout for my next article about keeping yourself organized when a seller is making repairs to a home before you move in.