If you are a successful deal finder ( buying property below market value )please could you share with me how to find the motivated sellers.
Do you have RE agents as friends?
Do you have a way of knowing whats been on the market for a long period of time?
Do you just put on low offers on dozens of properties & hope one sticks?
Other?Hi,
I know one thing that wont endear you to many agents and that is putting in lots of low-ball offers hoping one will stick.The concept of “below market value” is a bit fuzzy anyway. For example: Buying a house that has just come on the market and only listed with the one agent you might then be able to advertise it in other cities / states or on the ‘net and get a better price. In that situation the seller got what they asked, the agent gets a happy seller and you effectively bought “below the market” because you had a wider market to value the property.
The other main way of getting something below the market is to buy in a different market to the one will use the property or sell the property into. That is a large 6 bedroom house might be worth more as university accomodation with 6 borders in it that as a family home for example. Finally I’d also say that renovation, as in engineering an increased market value is a popular way of buying below value.In essence: Time and money are interchangable (if someone has no time, they must pay more money and conversly if you have lots of time you don’t need to pay as much) And knowledge is power (knowing a NZ property will sell more to an Australia investor than a local)
So to find a deal you need to “make” a deal because the chances of hitting on the one house that will sell below market value before another investor comes along and offers more than you are slim.
1. You dont have to be friends with anyone to find the good deals or motivated sellers.
2. Typically a suburb you’d think would be good to invest in, you watch for awhile. Through this you will eventually know all the houses for sale, what price, roughly how long they’ve been on the market, what is and isn’t selling and the list goes on. I consider myself to be a semi-expert [grad] on market conditions in various suburbs and areas that I haven’t even been to.
3. If you want to buy in an area and say there are 20 houses for sale at $100k each, in todays market, 99% of the time one of those vendors would be willing to sell for $75000, or less!
Don’t worry about ‘low-balling,’ some say do it, some say don’t, but who cares, it’s your money anyway. And dont worry about agents either, they’re just an irritating and unavoidable obstacle in the way of your next deal. [grrr]
I firmly believe in this market the ball is definately in the buyers court.
Hope this helps…Good Luck G7
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