The first mistake buyers make when looking for a bargain is they "think" they can buy a home in a pristine area for half the price of other homes in the area. It's very unrealistic to think this. So, the first thing to do is be realistic with yourself. This will help you avoid disappointment.
The second thing you should do is know your price range and tell your Realtor the truth with how much you can spend. For some reason buyers tend to think they should tell their Realtor a low ball number on what they can afford. Doing this ONLY hurts you! If you can spend $150,000 on a home don't tell your Realtor you can only spend $100,000. Doing this will limit how many homes your Realtor can pull to show you. Your Realtor is looking out for your best interest and for them to do this fully you have to be 100% honest with them.
The third thing you should know is that investors flock towards foreclosure homes. So when looking for a home to purchase at a bargain you should look towards short sales, and regular sales. You'll have a much better chance when putting an offer in on a short sale or regular sale. Why? The reason being is because since investors go more towards foreclosures you can cross them off your list of competition. Your main competition will be other buyers with loans. Don't get me wrong, some of those other buyer's will put in offers that are above list price but at least most of them won't be cash offers. This gives you a better chance! So, please flock towards short sales and regular sales!
The fourth thing you should look at doing is putting in offers on homes that are below your price range. What do I mean by this? What I'm saying is if you can spend $150,000 on a home put an offer in on a home that's priced around $140,000. This will allow you to put in a higher offer without going over your price range but still going over list price. And as stated before most homes are selling above list price in today's market! What happens if you can't find homes price below your price range that you like? Look at short sales and regular sale homes that are priced in your price range and make full list price offers!
The fifth thing you can do is put in offers on homes that are overpriced and have been on the market for a long time. I know your saying but wait Shanell, you just said to put in offers in on homes that are below my price range. Yes, your right I did, but putting in offers on homes that are overpriced and have been on the market for a long time is a great way to go as well. So how do you do this? First off you need a great Realtor. Someone who knows the market and knows when a home is overpriced. Most homes that have been on the market for a long time and are overpriced have sellers who are frustrated. No one wants to put offers in on these homes and the seller is now just wanting a offer to get the home sold! So, when a home is overpriced with a list price of $200,000 and your Realtor knows homes in that area are selling for around $150,000. Your Realtor should put in an offer for you at market value and also provide comparable comps with your offer to back it up. This will give you a great chance at getting a home you love for a price you can afford!
These bargain tips are tips I use as a Realtor in everyday business. They work for me with my clients and they can work for you too! So remember them, so that you can bag a bargain!
Go to http://www.shanellrobinson.lnf.com/ to view my office listings, search for homes and MUCH more!
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