Whether you are looking to buy a property for your business, as an investment, or for your family, it will be one of the major purchases of your life. If you take the time to learn about some expert buying tips, you can buy a property more confidently and find one that meets your needs and is closer to the price you want.
When searching for real estate, the ultimate goal is to get the right property at the right price that matches your budget. However, this doesn’t happen by chance. You should do proper homework to achieve this. Here are some key buying tips that you should consider while searching for real estate in your local area.
- Consider buying a property foreclosed by a bank
Banks have deadlines that require timely payment of mortgages for a property, yet some people struggle to pay. So, in turn, banks vacate the property from its occupants, and once the home is empty, it is generally listed as saleable property.
When the foreclosure deed is completed, these properties can be some of the best deals for you. The lenders have lent the money and do not manage the property, so they usually offer huge discounts to get their loan books cleared. In this way, you can get an amazing deal on a foreclosed property.
You should also know the correct way to buy foreclosed properties. Foreclosed properties often require some serious updating or repairs. So, to compensate those expenses, you may be able to get further discounts.
- Either buy a new property deal or look for an old one
In the world of real estate, it’s often a first come first serve basis. Considering that, to get a great deal, be quick. Get your application pre-approved by the bank. Maintain good and frequent contact with your real estate agent so that he or she can inform you as soon as some new property enters the market. After receiving the notification from your agent, do not delay and seal the deal quickly. If possible, make an offer to buy the same day.
Conversely, one other way to get a great deal is to find properties that have been on the market for a long time but have not been sold. The owners may sell it at a discount because they might be tired of holding onto it for so long. Mostly, it happens that the property owners are engaged with two mortgage payments and to release the burden, they might offer amazing discounts.
- Privately approach the absentee owners
Many times, it happens that a property is for sale and dozens of buyers line up to buy it. The best tactic used by real estate investors nowadays is to look beyond their multiple listing services and contact the owners directly. Many people like to be contacted directly. So, you should reach them before they list their property with a real estate agent.
In this scenario, the best people to target are the absentee owners. They are the ones who own a property but don’t live there. You can capture these deals in many ways like:
- You can look around, look for vacant houses and then use online public records to track down the owner of the property.
- You can buy a public record list from any aggregate-list site.
- You can also try calling the mom-and-pop landlords whose properties are listed “for rent” on Craigslist. Talk to them and let them know that you are interested in buying their property.
- Filter the deals
While searching for a good real estate property, you might come across some deals, but the ones suitable for you are very few. So, you should filter them until you get the one you need.
You can filter them the following way:
- Raw leads provided by the real estate agent.
- Leads located at the place you want.
- Properties that look promising after quickly analyzing; after deeply analyzing.
- Properties that are have deals for making an offer.
- Offers that have been/would be accepted by the buyers.
In this way, you will get many deals that you can consider. Then, after filtering them, you will be left with a few to make an offer on, and lastly among those offers, hopefully some will get accepted by the homeowners.
At ONQ Financial, we’re familiar with the workings of the real estate world, and know that you should always remember that you will get the value of what you are willing to pay for. If you want a property which can create wealth for you in the future, or save you during times of financial weakness, it is necessary that you find a great real estate deal. Take note of the key tips above so that you’ll know what to do when an amazing opportunity comes your way.
Simon Gates is a professional finance and mortgage expert who’s had years of experience working in the industry. He currently writes for ONQfinancial.com and is dedicated to helping people find the best home loan options for their needs. In his spare time, he likes to travel.