Finding a Property Bargain: 12 Essential Steps

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Finding Bargain Properties

Getting a property bargain is tough. Even in a market flooded with properties you would be surprised to find out how much people want for their properties and how hard it can be to really get a great deal. The following steps can help you get the most for your money on your next property purchase.income property

  1. Find someone who needs to sell. Obviously, going after the recently divorced, those in financial trouble, or the recently deceased is not the most moral path. However, these people need to sell their property and are usually in a hurry to do so. You can help them while you help yourself to a cheap piece of property.
  2. Know your stuff. If you are serious about buying a property you have to be the first person to jump on a good deal. If you understand everything about the market including the current prices of properties that meet your specifications you will be able to negotiate and get the best possible deal.
  3. Get your ducks in a row. When the perfect property at the right price pops up you need to be ready with your money in hand. As such you have to figure out how much you can afford and arrange for your finances before you search for a property. Sellers are more likely to accept an offer who has the cash then from someone who they have to wait on for approval.
  4. Make yourself known. You want agents to think of you when they see new properties. Contact them regularly and remind them of what your are looking for and that you have the cash to pay for it. Then they will remember you and you’ll be their first thought when a great deal comes across the desk.
  5. Look for added bargains. The value of a property is not just in its selling price. Look around and you might find places that can easily become multi unit rentals or have the potential for rezoning. You might be able to avoid realtor fees buy purchasing from a family member or from your current landlord.
  6. Evaluate properties for growth potential. The area around a specific property may have loads of potential for industrial or transportation growth. It can be worth plunking down some extra money and then waiting a few years for the big payoff.
  7. Ignore trends. If the market is sluggish it may be the perfect time to buy on the cheap. Instead of falling back like everyone else dig in your heels and focus on getting a property bargain that will pay off in the long term.
  8. Don’t buy against common sense. No one wants a home on a main road or near a rail line. While they may be good deals they are going to be nearly impossible to unload.
  9. Look at the big picture. Ugly houses can have beautiful structures hidden underneath. Many times sellers list homes that have renters in them who are less then accommodating to potential buyers. Try to look past them and see the real value of a house.
  10. Try to be flexible. When you really want to get a good deal try to avoid filling your contract with conditions. This will make your offer much more appealing to the seller and increase the chances of it being accepted.
  11. Research the listing agent. Sometimes agents list properties in areas they know almost nothing about. If you spot an agent from out of the area in a listing you can often outsmart them because you know more about the area then they do.
  12. Watch for properties that hang around on the market. The longer a property is listed the greater the chance that you will be able to get it for a reduced price. The seller may get frustrated or tired of constantly showing the house and be happy to simply have it off his hands.

Bargain Properties Can Improve Your Finances

Getting a property bargain is a great way to build our financial portfolio. Whether you are purchasing a home for yourself or as an investment or rental property you want to get the best possible price. You have to be smart and take the time to wait for the perfect opportunity in order to get a sweet deal.

This article was written by William Eve, a regular personal finance writer for Home Loan Finder, a 100% free mortgage comparison and application service. If your a first home buyer or looking to upgrade, visit the HomeLoanFinder website for more great ways to save money on the property market.
Photo Credit: Sam Ilić
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