The Essential Guide On How To Buy Like A Pro
Leverage the Power of the Internet
By using a combination of MLS searches, 3rd party property search sites, classified ad sites like Craigslist, and investing in Google and Facebook ads, I can help you hunt for real estate bargains from day one.
These property searches will also help you get your finances in order, and get a better idea of the size of the mortgage you’ll need to live in the neighborhood or area of your choice.
I can also run email marketing campaigns aimed directly at our network of contacts in order to help you find properties not publicly listed. These could reveal amazing deals impossible to find otherwise.
Find The Right Lender and Mortgage For You
Just like you would always get a second opinion from a doctor, you should always get a second (or third, or fourth) offer for a mortgage loan.
Though interest rates from top lenders (major banks being some of the most popular ones) tend to be pretty similar, even a tenth of a percent in a fixed-rate loan makes a huge difference in the long run.
At the same time, the right lender will help you see if you qualify for a number of government-sponsored programs geared for first-time buyers.
I have a list of preferred lenders and can help you find the right lender and loan based on your needs.
Be the first (or last) to make an offer
The phrase “You snooze, you lose” is especially relevant for real estate buyers.
That’s because the buyer that makes the highest offer doesn't always get the home. In many cases, it’s the one that makes the first offer.
If the seller is in a rush to sell, and the first offer is a good one, it’s quite possible the seller may simply accept the offer on the spot.
So when looking for a great deal, you must be ready to make the FIRST offer.
To make sure that happens, you MUST get your finances in order. Before you start making offers, make sure sure to have your pre-approved loan by the bank (and if you’re able to pay in cash, even better).
And once you’re pre-approved, don’t delay in making offers. Work with me to establish the parameters for a good deal. And as soon as a deal that meets those requirements hits the market, make an offer in the same day.
Also, as you wait for a great deal to hit the market, we can keep an eye out for properties that have been stuck on the market for a long time. The owners of these homes could be more willing to sell at a discount, because they’ve been stuck paying a mortgage for the entire time it’s been listed.
Ask the Seller to pay closing costs
Though the buyer is typically expected to pay for a number of closing fees, (especially those related to the origination of the loan), it’s not a law written in stone. Like pretty much everything in real estate, closing costs are negotiable.
Of course, sellers don’t like to sell homes for less than their bottom line. Not just because they don’t want to lose more of their earnings, but also because there’s always an ego element attached to any home sale.
Home sellers are keenly aware of how much their neighbor's homes sold for, and would hate to sell their home for less.
If the sellers are adamant against bringing down their asking price, we can negotiate for the seller to cover the closing costs.
Not only does this allow the seller to save face and keep a larger final price, but it could also save you thousands of dollars.
Shop during the slow season
Even if you don’t live in a place with a harsh winter, most home buying and selling activities take place during late spring and summer.
As a result of that seasonal increase of activity, home prices go up.
So if you’re willing to brave the cold and wait until winter, you may be able to capitalize on some amazing deals. People who are willing to list their homes in the middle of the holidays are typically very motivated to sell. This, of course, could lead to amazing deals for you.
On the other hand, there’s a downside to shopping for homes during winter: you’ll have fewer homes to choose from. And when making offers, you’ll have fewer recently sold comparable properties to help you calibrate your offers.
Look into bank-foreclosed properties
Banks are not in the business of homeownership. They are in the lending business. Homeownership comes with a lot of maintenance requirements, expenses, and taxes.
Which is why any time a bank ends up taking possession of a home by means of a foreclosure, the bank would want to sell it as quickly as possible. This usually translates into banks selling homes at a substantial discount.
On the other hand, not every foreclosed property is an amazing deal.
The foreclosure process is a lengthy one which could drag on for years. Many foreclosed homes are in serious disrepair. If you’re not careful, your bank-foreclosed property “deal” could turn into a nightmare scenario.
It’s extremely important to work with a professional real estate team that has plenty of knowledge and experience dealing with foreclosed properties.
But if you’re willing to spend the time and resources needed to sift through the foreclosed home inventory, you’re sure to find some valuable gems.
Drive for dollars
As your real estate agent, I can employ a strategy often utilized by savvy investors to uncover potential deals in desirable neighborhoods.
It's a straightforward approach.
Investors often take to the streets, driving through neighborhoods they have their eye on, in search of promising opportunities. They keep an eye out for signs indicating a motivated seller, such as properties with "for sale by owner" signs or those showing signs of neglect.
Once they spot a potential property, they don't hesitate to knock on the door and introduce themselves to the homeowners. They express their interest in purchasing a home in the area and inquire if the homeowners know of anyone looking to sell or if they themselves are considering selling their home.
If they don't receive an answer at the door, they don't give up hope. Instead, they may conduct a property search using public records or utilize a reverse phone number search to track down the owner's contact information.
This proactive approach allows them to uncover hidden gems and seize lucrative opportunities in the real estate market. And as your dedicated agent, I can employ similar strategies on your behalf to help you find the perfect property or secure a profitable sale.
Look into new and pre-construction developments
If you’re not willing to look into fixer-uppers, another possibility is new and preconstruction developments.
Builders offer a range of incentives anywhere for interest rate buy downs to closing cost contributions, appliances, and window coverings
If you’re interested in finding construction unit deals, I can help you find the best pre-construction deals in the area.
Look into tax-delinquent homes
As you know, every homeowner in the US must pay his/her yearly property taxes. But if they fail to pay these taxes, their name is added to the county’s treasurer’s “Tax Delinquent List.”
If enough time goes by (1-5 years, depending on the state) and the homeowner doesn’t pay those delinquent taxes, the county takes possession of the home via a tax foreclosure. Then, the house is auctioned off to recuperate those missing taxes (from which the homeowners would get $0 in return).
Believe it or not, tax delinquent lists are part of the public record. You can have access to your local list by asking for it in your county treasurer’s office, and paying a fee to obtain it.
This list is filled with homeowners that have a HUGE motivation to sell their property, especially if they haven’t paid their property taxes in years. If they’re only a year or two away from losing their home to a tax foreclosure, and they could be willing to sell their home or property for pennies on the dollar.
Of course, as you may expect, many of these homes fall squarely into fixer-upper territory, and would require you to have plenty of capital to get them into shape.
Get in touch with real estate wholesalers
Real estate wholesalers make a living in finding amazing deals, marking them up a bit, and reselling them to real estate investors.
Some of the homes they resell could still be fantastic deals. Meaning that with the right wholesaler, you could still find amazing deals without the need of doing all the work of finding the deal yourself.
As your Real Estate agent, I can the connect you with reputable Real Estate wholesalers who can help us find lucrative opportunities in the market.
Real Estate wholesalers are often active members of local real estate clubs, accessible through online searches, and present at industry networking events. By leveraging my network and expertise, I can identify and reach out to these wholesalers on your behalf.
Once we establish contact with one or more wholesalers, I will ensure they have your contact information and request to be added to their exclusive buyers’ list. This list provides you with access to off-market deals and priority notifications on new properties, giving you a competitive edge in your real estate endeavors.
By collaborating with a trusted network of wholesalers, I can streamline the process of finding investment opportunities tailored to your preferences and goals. Let's work together to unlock the potential of the real estate market for you.
Again, just like with tax-delinquent homes, many of these properties fall into fixer-upper territory. Make sure you keep that in mind.
Hire an Amazing Real Estate Agent!
As a home buyer, you have absolutely NO reason why you shouldn’t hire the best possible real estate agent in your hyperlocal area.
I bring a wealth of expertise, street smarts and knowledge to find you the right home at the right price. I can use those skills to help negotiate a far better price than you could get on your own.
My services offer a buffer of protection. Thanks to my experience and expertise, I can see toxic deals a mile away and can warn you against them. I can also help you avoid common legal pitfalls in real estate which you could stumble into on your own.
In Conclusion
Don’t believe the naysayers. It’s not just rich real estate investors and brokers that find the best real estate deals.
Though it may take effort and patience, if you work together with a knowledgeable and experienced real estate agent, and know where to look, you’ll also be able to find some of the best possible deals in the area.