Eight Secrets for Bargain Seeking House Hunters

    

        Eight Secrets for 

Bargain Seeking House Hunters

 

          It's True, There's Tons of Bargains on the market today.  But, is it actually a Bargain for You?  What is one person's junk is another ones goldmine.  Houses are in the eye of the beholder and attracting the most Buyers is the name of the game. 

 

1)  Be Clear it’s a Bargain

      There’s a big difference between the asking price and the fair market value of a property.  Many buyers think any offer below the asking price it's a bargain.  Checking comparable sales is the way to see if it’s a true Bargain.  Comparable sales are properties of similar type, in the same geographic area and sold within the last 3 to 6 months.   

  

2)  What does a Bargain mean to You    
       Everyone looks at properties differently.  You need to be Clear on Your Personal Objectives when Buying a Home. Are you looking for the biggest home at the lowest price?  The lowest priced home in a particular neighborhood?  Maybe, a home in move-in condition for the price of a fixer upper.  A fixer upper with a nice profit margin?  Once you have a clear objective, you can focus to make sure it's a Bargain for you. 

 

3)  Regular sales might be a Better Bargain versus Bank Foreclosures or Short Sales

       Contrary to popular belief, individual home sellers have more leeway and sometimes more reasons to accept a lower offer than the bank foreclosure negotiators do.  There are guidelines banks use to sell foreclosed homes or accept short sale payoffs to try to get the best price possible.

 

     Individual home sellers might be in the process of divorce, being transferred, it’s an estate sale, or they just need the money.  Looking a little deeper into the motivation of the seller can help you tremendously. 

 

4)  Look for Sellers who have Demonstrated they are Flexible on Price

       Don't just look at the pictures, check out the descriptions for Clues.  New Lower Price, Best deal in the neighborhood, Owner Cannot make Repairs and Selling "As Is", Seller will help with closing costs, Estate sale, or even Bring all Offers, Must Sell and Seller Motivated are some Flexible Sellers. 

 

5)  Find Motivated Sellers by taking note of DOM (Days on Market)

      The amount of time a property has been on the market can be a real clue on the motivation to sell. If it’s only been on the market a few days, sellers are not likely to accept much less than the asking price. But, if the property has been on the market a few months, the sellers might say it’s time to sell.  

 

6)  Don’t Insult the Seller

       Some people think that the seller will be anxious to receive any offer, not so. Sellers don’t want to have their property on the market a week and be presented with an offer that’s substantially less than their asking price. 

 

       Sellers don’t like to negotiate back and forth 7 or 8 times or offers that have silly contingencies like a partner must approve the sale or next to nothing in earnest money deposit.  Many times a seller will take the stand to refuse to sell to someone who disrespects them or intends to steal their property.

  

7)  Make it a Win – Win Sale

      Try to gain as much information as possible. If you know what the most important issues for the seller, you can work with them and both sides Win.  Sellers put their properties on the market for a variety of reasons; downsizing, job change, looking for a bigger home, financial hardship or divorce are popular.  Most people have become emotionally attached to their home. If you can accomplish their goals along with your - everybody Wins. 

  

8)  Sell Yourself – Be Prepared to Buy

       The sellers, or banks selling foreclosures, may have multiple offers. If you can offer an assurance your offer will actually go to settlement, you have an advantage over the competition.  The last thing a seller wants is to wait 45 to 60 days only to be told the Buyer did not qualify for the mortgage.  Or, that the lender wants tons of repairs before the sale can be completed.

      Have a mortgage pre-approval letter ready or bank proof of funds to purchase makes your offer stand out.  If you want a “Bargain”, you need to “Sell Yourself” too.  The property belongs to the Seller and you want them to Accept your Offer.  If the Seller believes it will be a smooth and hassle free sale, they are more likely to accept you over the Competition.

 

Hope This Helps.

 

Kathleen McKinney, Realtor

Real Estate Excel, 134 N Main St, Souderton, PA 18964