Finding Motivated Sellers in Real Estate – Luck or Hard Work?
Half million dollar house in Salinas, California under foreclosure. (Photo credit: Wikipedia)
With the real estate boom in recent years and on the other end an unstable economy, buyers are constantly on the look-out to find the next best real estate deal. Whether it is a dream home in some upcoming projects in Mumbai or commercial office space on the busy streets of London, investors are queuing up to find the best value for money they can.
While you may feel people around you are getting lucky with finding stressed out sellers who give them a great rate or they happen to walk into the best investment scenarios, it is not really the case. With a little bit of digging around in the property market and elbow grease, you too can find motivated sellers who want new buyers and are creating an easier situation for everyone involved.
Below are listed some ways wherein you can find motivated sellers for your next real estate and property investment venture :
- Auctions – Property auctions are some of the best places to find good prices on prime pieces of real estate. Sellers are usually looking to get rid of their property or lots of land for various reasons and necessities are are hoping for the best bidder for the lot. It is definitely an option worth considering since you never know what you may find. But make sure you know the true value of the property in question as well as all the repair costs in question before bidding.
- Check out all local advertising – Advertisements and classifieds in real estate abound. Those sellers that invest in tons of ad space, flyers etc. are usually motivated and looking to sell quick. Look for signals with words used like ‘quick closing’ , ‘fast sell’ and the like. Also look at online listings on various real estate websites. Don’t discount expired listings or ones that have been on for a while, sometimes those home owners are the most stressed with waiting for buyers for their property.
- Foreclosures – Foreclosed properties are one the easiest ways to find real estate for rates that are fa below the market price. They usually entail sellers desperate to get rid of their property for financial interests or motivated banks looking to get their financial return. Again, it is imperative to do a thorough check of the actual state of the property in question, since sellers do not incur damage or renovation costs for such homes / spaces when in foreclosure. So be careful not to simply be swayed by the lower price.
- Look for model homes – Builders will often sell their model homes in a residential development or community, once they have sold their main lots. These may be available to you at a discounted rate.
- Talk to CPA and financial advisors – Real Estate investment pros often suggest talking to your CPA, accountant or any other such financial advisor too. These people are usually in the know of other parties in financial distress looking to sell some property quick. The same goes for attorneys and legal advisors who are also privy to such kinds of information and may know someone who needs a sale fast. Word of mouth can be a very powerful tool!
These are just a few methods you can employ to find a property deal you are happy with whether you need office space in the upcoming projects in Mumbai or an antique villa in a dusty by-lane of Rome. There is a tricky balance between working with a seller who is motivated and offending one with too low an offer. Make sure you do a little research about the surrounding prices and sales in the area before settling on a figure that works for you.
Bio –Sujeet Mehta is a seasoned real estate investor in Pune and also works as an advisor and agent for people looking for property. He believes that the upcoming projects in Mumbai, Pune and Nashik both in the residential and commercial markets have tremendous potential and often advises his clients on the same. Also he writes for http://www.thewadhwagroup.com/
Category: Housing, Real Estate
