Are you planning to hold property as a rental, flip a house or use it for something else, everything starts off when you hit the jackpot real estate deal. Some tips you can use to conquer the real estate space are as follows:
1. Obtain first-mover advantage
Often, in the real estate business it’s not the highest offer but the first offer that hold a higher value. Thereby, f you are looking for a great deal, grab the opportunity as and when you come by it. Consider getting a pre-approval from your bank to quicken the process. Arrange for your real estate agent to help set up automatic email alerts that’ll notify you all the latest properties and great deals.
2. The direct approach
One of the top strategies applied by investors in the real estate sector these days is to pick from outside the multiple listing services by approaching the owners directly and persuading them to sell the property. Absentee Owners are a goldmine target. They may be landlords or owners who inherited their houses and are just unsure what to do with them.
3. Consider a bank-foreclosed property
Failure to make a mortgage payment for an extended period means that the lender will eventually take over the house and vacate the occupants. The lender then generally puts the home for sale on the market, using a local real estate to list it.Banks are not keen on managing the acquired property, as their interest lies in obtaining their return on investment. As a result, banks usually offer massive discounts just so that they can sell the same.
4. Deal hunting your way out
One way to strategize the hunt for the perfect deal is to characterize deals as a funnel. The funnel consists of the following:
- Raw leads from my real estate agent
- The location is somewhere I would buy
- A quick analysis shows promise
- A more in-depth study still indicates promise
- Deals I’ve made an offer on
- Offers I’ve made that have been accepted
- These parameters will be assigned according to interest or feasibility.
5. Last but not the least –
Sellers finding it challenging to get rid of their house and move into a new phase in their life is most likely highly inclined to lower the price range and accept a lower offer than the ones they had previously entertained. The prices are also much lower than those approved by the owners of new properties. Enquire with your real estate agent and obtain the list of all the properties that meet the criteria mentioned above of a property that has been listed for over six months. Following this, you are required to start making offers for purchase.