Residential properties aren’t a small investment, which means any discount you can get means big bucks for your wallet. But how does one go about negotiating with landlords and homeowners? While getting good deals isn’t rocket science, there’s definitely a lot of moving parts and dynamic factors to consider. Here are four tips to getting the best possible deal for residential real estate.
Consider Foreclosed Houses
When homeowners fail to pay their mortgage for a set amount of time, the lender, usually a bank, will ultimately need to vacate and repossess the property. Then, they list the property for sale, usually through a local real estate firm or site. And while no on relishes the fact that people got kicked out, these properties are technically the soundest investment decision you can make in real estate from a financial standpoint.
Be a Good Negotiator
Keep in mind that the money is made at the time of the purchase. Which side makes that money depends on you. If you aren’t as good of a negotiator as the opposite party, then you’ll be making him/her profits. A good negotiator does the research and uses the facts to figure out the most favorable price point for them. Confidence and assertiveness are also key traits that can get you a good deal.
Be the First One to Make an Offer
In real estate, it pays to be the early bird. A lot of homeowners who are selling usually prefer to get out quick rather than get out with the highest possible offer. If you’re shopping for a great deal, jump on property listings asap. To be able to make an offer right away, secure a pre-approval from your bank or credit union. In addition, instruct your real estate agent to notify you of any new listings that meet your specifications.
Contact Owners Directly
The challenging part about house-hunting, specifically for residential properties, is that any one property gets too much attention and too many offers. A simple and almost obvious solution to this problem is to contact owners directly. Going door to door and asking them a simple “are you selling your home?” can yield a good number of leads.
Residential real estate is a prized commodity. As human population continues to spiral and space becomes scarce, holding onto one or two properties can be a lucrative endeavor and one that can bring you peace of mind that you’ll always have a place to stay.