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Several Steps That Will Snag A Big Bargain
Sunday, September 25, 2011
With house value depreciated and many speculation homes still being sold, now is a great opportunity for buyers. We know because we buy houses ourselves. While the home market may still be flat, it will eventually rebound, leaving the smart buyer to take advantage of someone else's failed investment.
1) Understand your own resources. Some speculators are small-money independents who are eager to make cash. Beware placing all your chips on a for-sell home. Unless the buyer hopes to move in themselves, the investment might turn sour, causing those chips to be locked up for a long time. Big money investors can afford to take larger risks; we buy houses
by the bushel and take advantage of averages.
2) Know how to sniff out bargains. Auctions are being held right now across the country. It is generally the bad deals that are most advertised. Look for the obscure auctions by reading the paper and checking with the courthouse. The low-key auctions with fewer interested bidders is the ticket to buying for pennies on the dollar.
3) Scour the countryside. Anyone who just looks in their home town will end up waiting a long time; this is too long to wait, especially if you are an investor with funds to burn. Look in the surrounding region and even across state lines for excellent deals. Thousands of dollars in potential profit are up for grabs, so it pays to do the work.
4) Don't be afraid to travel. Finding the best deals means going far out of your way. There is the potential to make profits in excess of the capital, so there really is no reason to skimp the legroom. A 12-hour drive could end up earning a diligent investor tens of thousands of dollars in short order.
5) Understand the local housing market. It may be possible to buy a house cheap, but what is the local market? Are people moving in or out of town? Are there a lot of other unsold houses to compete with yours. If the local housing market is truly ditched, it may be a long time before you see return on your investment.
6) Examine the house. Any potential homeowner, including those who will not actually be living in it, will still want to carefully examine the merchandise. A nice home with a nice front in a decent place in town may fetch a commendable price.
7) Look at the surrounding area. If it is in the country, what are the prospects for future development? If a neighborhood is in the making, then there may be long-term appreciation.