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| More rates and news from Distressed Properties Offer Bargains For Buyers
(Today’s real estate and housing market has been posing a lot of problems for sellers and opportunities for buyers.)
Prices have been dropping fairly steadily, but we have not seen too many bargain basement deals, as sellers struggle with the idea of dropping their listing price at all. To truly find the good deals, savvy buyers must know where to look.
Contrary to what many people think, smart buyers and investors know that a slow market is the perfect time to get into real estate, not the time to stay away from it.
Bargains abound and there are great ways to build wealth through a real estate portfolio when the market is not “booming” like it was a few years ago, you just have to know what your doing.
A November 30, 2006 article by William Bronchick of legalwiz.com, “The recipe for real estate success…Finding motivated sellers,” discusses some of the tricks of the trade for building wealth in this industry as well as just finding some good old-fashioned bargains.
“In real estate there is a saying that you don't make your money when you sell, you make your money when you buy. The name of the game is finding amazing deals and then keeping them for the long term or turning around and flipping for a handsome profit. Of course, if great deals were that easy to find, everybody would be doing it. The forces of supply and demand would inflate the price of properties to the point that there would be no deals left!”
“Naysayers claim that this is true of today's housing market, but in reality, there are endless deals to be found almost anywhere at almost anytime. Finding these deals takes experience and talent, but this article serves as a head start for novice investors, or a refresher course for old pros.”
The first way to find a good deal is to look for a seller that must sell immediately, these are known as motivated sellers or distressed sellers. Or, if a seller is just plain ignorant about the market, you could also score a good deal from these types of homeowners as well.
“Your chances of making a career out of finding homes owned by people who don't know any better or who don't care are slim, so it's best to concentrate on identifying motivated or ‘distressed’ sellers. After all, only someone who absolutely needs to sell is going to price his or her home well below market value and/or accept unusual financing arrangements. These are the ingredients of a great deal!”
A person becomes a motivated seller for a variety of reasons, such as divorce, job loss or relocation, serious financial problems and a variety of many other things. These people need to sell, so you are actually doing them a favor by buying their property!
So how do you find a property that needs to be sold immediately? “The first place to look is the newspaper. Don't bother searching through the fancy ads with pictures placed by real estate agents; go right to the classifieds instead. Look for listings with ‘for sale by owner’ in the text, or that appear as though they are being sold without an agent.”
Also, another way to find properties is to send a letter to local real estate offices letting them know you are a buyer or investor looking for properties that need to be sold immediately, which could get you some favorable listings. All in all, be sure that you are financially and emotionally ready to start buying properties and speak to an expert before conducting any real estate transactions.
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