When it comes to finding deals in real estate, it’s all about doing. It is also an easy mistake to focus on just one strategy. The best deals may take time so the sooner you start looking the better. One thing is certain, deals will not come looking for you so go out and start searching.
For sale by owner houses can be found in a few different locations. These are such interesting listings because it depends upon the owner as to where they advertise it. Some sellers may not be savvy when it comes to marketing online, or even posting a house for sale by owner online. These sellers are likely to be your yard sign sellers.
Look for Deals at Auctions
Online auction sites can be a source of deals. If you do a search for your area and find properties, make sure that they can be accessed and viewed. Many properties now listed on these sites are occupied and do not allow a viewing. If you find a property that you are interested in bidding on, do not get carried away. Remember your numbers and stick with them. And read the fine print as many of these purchases will add on a buyers’ premium that is 3-5% of the purchase price.
Look for Deals with Foreclosures
The foreclosure process is different in every state so the first step here will be to research how it works where you are. This can easily be done by checking your county website. There are several steps that a homeowner will walk through during this process so having a general idea will allow you to understand how the offer and sale process works. It is not easy and may require some legal advice if you are considering this marketing technique.
Driving for Dollars
The first rule with driving for dollars (if you can) is to bring someone with you. Trust me, it is really tough to scope houses and jot down addresses while you are driving. You are looking for houses that look vacant or run down. Overgrown grass, unshoveled walkways, or piled up newspapers or mail. A couple of bonus items you may find are pre-listing real estate signs that are up before the listing is active and for sale by owner signs.
This type of investing requires some research and patience. Probate properties are those properties that were owned by someone who passed away and the house needs to be sold. There is a process for probate and sellers may have to wait until the process is complete before they can sell. In the meantime, they are responsible for taxes, utilities and maintaining a house that they likely didn’t even want. Due to the timeframe, you will want to make sure you are following up with these sellers so they know who to contact when they finally get the green light.
This list is just a few of the many ways you can find deals. We’ll be back with more ideas next week.
Want to buy a property and renovate it?
I have a freebie checklist that will help you — 8 Things I look for When Purchasing a Home. Just click here to download it.
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