Here’s a few tips and tricks that will tell you how to find a bargain property in the area you want – explained in a plain and simple way. Whether you are a real estate investor or an owner-occupier looking for a new home, you will want a good bargain, that’s just human nature. Be warned though that if you have a definite time-line in mind to buy, then your ability to locate a bargain becomes compromised. The key to securing a bargain property in the area you want is patience.
So now you know you cannot be in a hurry to buy… instead you should be prepared to buy when the time is right. That means careful planning. If you’re an investor, consult your business plan and make sure you stick to it. If you’re an occasional or one-off real estate buyer, then here are a few pointers for you: don’t get emotional about potential property purchases, make sure you do your due diligence, and always make sure that you have sensible finance secured before you start running around submitting offers.
Why a property in that particular area?
You may have determined that the area you are looking for real estate in is the right one for you because of any number of reasons – good rental returns, proximity to education, future infrastructure planning, good transport networks. Make sure you have done your homework in terms of the location to ensure you know what you are getting into and don’t kid yourself about the reasons for buying in that particular location.
Once you have determined the area you want to buy in, consider looking for distressed properties in the area, such as short sales and foreclosures. These are properties where the owner is in a position where they will sell quickly, often at bargain basement prices. If distressed properties are not for you, then you will have to get a little creative.
A friend of mine recently did a letterbox drop in an area she was looking to purchase an investment property, reaching out to people who might be in a position to sell, but who had not actually put the property on the market yet. While she has not yet closed a sale off that effort. she did receive a few phone calls from interested parties – which is a good result. If she hadn’t been proactive, those properties would not have really been on her radar.
Realtors and agents are of course a great source of properties for sale, in any area – just not generally the bargains. There are of course exceptions to every rule though and there are properties listed with agents at good prices. The only thing you will have to decide is whether this is true in your target area. Regardless it’s always a good idea to network with real estate professionals in your target area – as you never know what will turn up.
Finding bargain properties in your local area that fit your purchase criteria is not always easy – but you don’t need to re-invent the wheel either. The key to finding that one property in the area you want is patience. If you are an investor, stick to your real estate investment business plan – if you are looking to occupy the property yourself, then remember to be patient and don’t let your emotions control a large value purchase.
But most of all have fun. Real estate is a blast, especially when you are shopping around. Sure there’s some stress involved, but enjoy it – there are many reasons to be happy about being in your position!