bargain Archives - Tri-Valley Real Estate Blog

We always want the best deal; and even better when we can find a great deal on a great house that we really love. If you’re ready to get into the real estate search game, know all you can about the business, the market and prepare yourself for getting a great deal.

Here are 5 ways to get the very best real estate deal.

#1. Know the market.

The knowledge really is power and if you’re planning on getting the best deal, this is not something that you decide on a Tuesday afternoon and then put in an offer Wednesday morning. You need to do the research in order to get the best deal. Take some time; maybe even a month or two to really find out where you want to live, get a good list of communities, subdivisions or neighborhoods that you’d like to choose and then the research over the last six months for that area.

How is the market doing? Are homes increasing in value rapidly or gradually? Are homes dropping in value? What about the crime rate for a particular area? Are there good schools in the area, something to consider for resell value? Home selling quickly? If homes in a particular area are selling fast you may need to come up with an escalation clause or deal with multiple bids for the same property.

If there are 300 homes in a subdivision yet only two or three are listed at a particular time, chances are that’s a very popular neighborhood and you might end up paying more than the asking price in order to get the home. If there are dozens of homes in a smaller neighborhood, people may be moving for a particular reason. Is there new construction going to be happening in the area? Talk to the neighbors about why they’re moving. And of course, talk to your buyers agent about a particular neighborhood, why you want to live there and if they have any concerns or advice they can share about the subdivision, community or area in general.

#2. Set yourself up as an attractive buyer.

After you’ve done the research on a particular neighborhood and you have a good idea of the area you want to live in and the price range, set yourself up for homebuying success. This means doing the financial homework necessary in order to purchase a home. If your financing the property, talk to a lender about the type of loan that works best for your situation. Get a preapproval letter and set aside some funds either for a down payment and/or earnest money deposit. The larger the earnest money deposit the more serious sellers take you. They may be more inclined to accept your offer then another similar offer that has a lower earnest money deposit.

Another way you can be an attractive buyer is to minimize your contingencies. If you need to sell a particular property, have tough financing contingencies or too many conditions that need to be completed before you finalize the purchase, sellers just see you as a hassle and may decline your offer altogether. Of course we always recommend a home inspection but in a slower market you might consider a home inspection prior to making an offer. This could waive the inspection after the offer is accepted, speeding up the process and making you more attractive to the seller.

#3. Consider a foreclosure or short sale.

Foreclosures and short sales are still out there and they can be great deals. There are keys to look for though in a foreclosure or short sale property:

Find the least attractive property in the best neighborhood. By doing so you can instantly gain equity once the home is fixed up, because it matches the rest of the homes in the area.
Keep your eye out for mispriced listings. Overpriced properties will generally get very little interest and attention and could sit on the market for a long time. These are great properties to go for because they might be more inclined to accept a lower offer.
Buy a foreclosure at the year or quarter end. This works especially well with cash buyers. If you make an offer at the end of a month, quarter or year, many banks will accept that offer in order to get the deal closed and off the books.
Look for the diamond in the rough. Many real estate agents make it too many homes from banks and not have enough time to really research the property and showcase the best features. Check out these properties a little bit closer and if they meet your criteria for size and the neighborhood, check out in person and you might find great features that the real estate agent failed to mention.

#4. Negotiate with everyone involved.

You can negotiate pricing from just about every party involved in the real estate transaction. This could include your real estate agent, appraiser, lender, inspector, escrow and title company. You might be surprised at how much you can save simply by negotiating everybody’s fees in an amicable and reasonable way.

#5. Know When to Pull the Trigger.

Knowing when to pull the trigger is something that you and your buyers agent should discuss. Once you’ve done everything prior to this point, knowing when NOT to wait is crucial. By determining all the factors above, understanding the area and the market, you should be able to pull the trigger on an offer at the right time.

ALSO – know when to walk away. This is just as important as knowing when to go for it. Your agent will be able to talk you through the plan and when not to get your emotions too involved. Sometimes, buyers can get so wrapped up in the process, they overpay when it’s all said and done. Don’t let the idea of “winning” become the focus over getting the right house at the right time.

Ready to get started? Ready for step one? Let’s talk!

More Tips for Home Buyers:

#1. Pay cash.

Now, I understand that not everybody can but if you can, it really is one of the best ways to get a better deal. Sellers see cash is a great opportunity to get the home sold quickly and close fast. If this is something that you can manage you’ll usually have a shorter escrow. And save money on lots of closing costs and of course paying cash to save you hundreds of thousands in interest.

#2. Purchase a home in a developing neighborhood.

This is where a lot of research really comes into play. You want to have a great buyers agent that understands exactly what you’re trying to accomplish and then researches neighborhoods, the type of home you’re looking for and great deals in order to make a move on the right property. The best way to do your research is to pay attention to news broadcasts, business journals and local city websites about new construction and changes happening in a particular neighborhood. If it looks like a neighborhood is transitioning from lower-income into renovated homes or perhaps they are tearing down an old abandoned strip mall in order to develop a Starbucks and more modern conveniences, this might be the perfect time to buy a home in the neighborhood. You’re likely to get a great deal especially if you combine a lot of these tactics when purchasing the home.

#3. Consider a fixer-upper.

This is definitely something to strongly consider and research before you pull the trigger. You don’t want to buy a home that requires you to put more money into it and you’re going to get out of it. By coupling this with buying a home in a developing neighborhood you can also gain quite a bit of equity on the backend. You could save a lot of money by doing most of the remodeling yourself but you’ll want to have a home inspection and understand how much money you’ll be putting into the fix-up before closing.

#4. Buy at an auction.

Even though foreclosures are down across the country some homes are still going through the process. It’s these homes that typically end up at an auction and bidders can likely get a bargain. However, you’ll probably be in competition with investors and those that by home specifically to flip and many times they require and all-cash payment. But, if you can do it, you’re likely to get a great deal. Keep in mind that these homes are usually in poor condition so be sure to check them out before bidding and if you buy in a developing neighborhood, that’s all the better.

If you’re looking for the best deal throughout the Tri-Valley area and you need an agent on your side to help facilitate the transaction and do the research for you contact my office today. I’d be happy to set up a meeting with you about what you are looking for and start the research process to get you the right property for your needs.

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