Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced properties are available if you know how to buy them. By Jody Hudson – Realtor since 1972. How to FIND and BUY: Cheap Bargain Real Estate, Good Deals, Below Market, Low Priced and Less Expensive; homes, lots, land, businesses, and condominiums. They are everywhere and easy to find. Here is how to find and buy them from anyone, anywhere. This article lays out the steps: How to find and buy a Bargain, A Good Deal, in real estate; that is; how to get it real cheap! Yes, there are ways! Nearly every call or e-mail that I get is asking me to find the buyer a bargain. We all feel that way when we are buying as well. All of us want a good deal. We all want to get cheap real estate. And we can all do it. There is a bit of a challenge however. Every single buyer that I’ve ever had in my thirty two years of selling real estate has wanted to sell the property they have for more than it is worth. Herein lays our challenge as Realtors — and of course for you as purchasers. To get those HOT deals in real estate there are at least three things you must do: 1. First of all as a buyer you must be able and willing to act faster than any other buyer. 2. Second you must be able to know a bargain when you see one. This takes experience and education in the specific market . Any assumptions made from other markets, about the subject-inteded market, will sentence you to certain failure… 3. Third you must BUY it. That is write a deposit check and write a contract that will win over the other contracts that may be presented at about the same time as yours. This group of three steps, sounds simple, but only about one buyer in each ten year period is willing to do these three things in order to get the cheap property they have asked us to find for them! I have several people, and so do most Realtors, that are the most; ready, willing and able and we call them first! If you want to be one of the ones called you must be MORE ready, willing and able! Recently, August 2002 the waterfront home next to ours was listed for sale for $249,000 and it was worth at the time about $350,000. Kate and I called each of our family members, our wonderful neighbors on the other side (one of whom is a local builder and the other a mortgage broker) and some of our best clients and a best friend of ours, a builder and investor, who had already said he liked the fine home. (Note that property is now worth about $800,000 Sept. 2004). We explained that the home was going on the market in a few hours and that they must act fast. Our neighbors on the other side, the most knowledgeable of the bunch wanted to make an offer of $180,000 saying they thought that was all the property was worth. They knew better or at least should have and they should have bought it. They just “hoped” they could get it for less and that they didn’t have to move fast. The offer they made was ignored and wasted our time. They did however get another property in a few days, for a lot more money, that was worth a lot less, as a result of improved alertness and awareness after losing the one next to us. Our savvy investor friend put in a couple of offers below the asking price with several contingencies. Meanwhile we are telling everyone to write a contract for full price with no contingencies and calling on both our phones as fast as we could call. None of our best friends or family would pay attention. They were ALL too greedy. They knew the property was far under-priced but wanted it for even less… Lesson: when it’s a good deal – ACT instead of getting more greedy and losing the deal totally. Then our lovely new neighbors came and saw the property. They also were knowledgeable about similar properties, and had lost several properties they liked by moving slow, writing unreasonable contracts and not paying attention to real values. This time they did it correctly. In fact they wrote a contract on the spot, with no contingencies, and for MORE than full price so that if anyone did offer full price they would still have the best chance. They paid $5,000 more than the full price on the spot, told the sellers they could have settlement any time they wanted it and before they even heard back from the sellers they arranged for a mortgage of MORE than they needed and asked for the money to be immediately available. They did not ask for a home inspection, a survey, or for the sellers to fix anything. The home is 30 years old and has not had one bit of maintenance. There was a burst hot water tank, a roof that needs replacing and a few HUGE cracks in the foundation. All these problems cost them about $15,000. They have, as I write this, owned the property for several months and worked on it every weekend, before they could take a break and enjoy it. They love it. If they were to fix all of the things that need fixing, paint the trim and freshen up the yard and landscaping; we could get $900,000 to $950,000 for this home for them in a few months on the market. And, city sewer will be here in a few years, at that point the property will instantly go up another $200,000 and all the people we called knew about the pending sewer too. The buyers didn’t find out about the sewer coming to town until after they had contracted to purchase the property. The sewer is still not in — WOW. They are glad they did the One, Two, Three to make it happen! By doing the three things listed above the purchasers of the home next to us have made the wisest purchasing decision thus far in their lives and have one of the best bargains that have been available in the last several years. The sellers are happy too as they just wanted to sell it as fast as they possibly could, due to a sudden and dangerous illness of one of the owners. I’m writing this article to serve you the reader. But you must know it is self serving as well. Much of our time as Real Estate Agents is spent trying to successfully educate our buyers and sellers. If they would take our advice they could be far, far, more successful in selling or buying. The articles I write here [http://www.kate-jody.com/essays/index.html] are those advices that I give my customers and clients – if they ask. Most don’t and when they do, very few take the advice. Just like in every other profession, we the professionals do what we can to help those who come to us but it’s up to them to take the advice. Bargain homes are always available – but hard to sell. They are homes that are in need of some repair or cosmetic improvement or that are in an area of transition. We have several on the market right now and they are hard to sell. Someone with vision will eventually purchase them, fix them up and perhaps sell them at a huge profit – often to someone who says they want a bargain but won’t do what it takes to get a bargain. Funny isn’t it, and this sort of thing happens all the time. It has consistently happened in my 35 years in the real estate business and being a licensed Realtor since 1972. Just know this, if you want a fixer-upper, so does everyone else, but you need to be very, very, educated and able to spend the time and money to renovate the property effectively and affordably. And, you need to do One, Two, Three! If you want a bargain; educate yourself and be ready to DO — One, Two, and Three. We’ll try to help you. By Jody Hudson Copyright 2002-2004 www.Kate-Jody.com Jody Hudson: [email protected]
It seems like I’ve written at least a couple of hundred real estate letters over the last year. So, it may surprise you when I say “I hate writing letters.” Writing for me is a stomach knotting, finger tightening, forehead creasing, gut wrenching experience. I guess that’s why I avoid writing them as often as I do.
However, there’s one good thing about the tortuous experience of writing letters and that’s this…I love what a good real estate letter does for my business. A good letter generates leads that can be leveraged into paying customers, customers who buy, sell and rent real estate. Nothing has had as big an impact on my real estate business as has a single, but well written letter.
I wish I could say that my letters are magical, but they aren’t. However, what I’ve come to realize is that somewhere along the way of becoming good marketer is that I learned the formula for letter writing success. Specifically, the letters are not about how good I am, but rather a reflection of how well I address the needs of the readers.
Real Estate Letter to Sellers
For example, most sellers want to sell their homes as fast as they can and for the most money they can get. So, my letters to them tend to emphasize the things that I do to effectively market their real estate; networking with agents known for always having buyers, spelling out the unique ways I’ll market their home (e.g., market to grad students, college professors, physicians, investors, law enforcement personnel, fortune 500 company employees, etc.).
I tell them the things that they want to hear and then deliver on what I promise. I also sell them on the idea that I’ll be available to them 24/7, while secretly hoping that they don’t call at 2:00 AM. But just between me and you I’d be okay if they did.
Real Estate Letter to Buyers
On the other hand, letters to buyers emphasizes finding them a good deal, no matter how long it takes. Of course you want to sell buyers homes as fast as you can, but you have to respect the fact that they’ll be spending hundreds of thousands of dollars, so a little patience is in order.
The difference between rushing a buyer into a home after only 2-3 three days of looking verses 2 weeks of looking before they find the perfect home is HUGE. In the first instance they’ll know that you’re all about you and that your main goal is to make a sale. However, in the second example they’re likely to think that you have their best interests at heart and are therefore good candidates for a lifelong relationships…and referrals.
Capturing A Readers Interest
Summarily, an effective real estate letter captures a readers interest and compels them to action. It starts with an attention grabbing opening line that makes them stop and actually think about what you have posed. That’s followed by a solution to their proposed expressed as a teaser. To get all of the specifics of your solution will require them to pick up the phone and call you.
But when it’s all said and done I still hate writing letters, but I love what they do for my business.
Consider the option of going ahead with a real estate agent because he helps the buyer or the seller of the property in more ways than one. Key responsibilities of a good agent make the entire process smooth, transparent, and easy for clients. However, this proposition is fraught with risk because finding a good agent is often a momentous task. This should not discourage home buyers and property sellers from hiring a good real estate agent as he alone can make things hassle-free for you. Therefore, your focus should be to look for an agent instead of searching for properties listed on various sites. Once you have roped in a verified and accredited agent to work on your behalf, the process of buying or renting or selling a home becomes much easier for you.
Local market knowledge
Equipped with local real estate market knowledge, he provides information of relevant properties available in the area. He studies the options that suit your budget and forwards the shortlisted options to you. This saves your valuable time and money. If you are interested, he shows you the properties. He is familiar with the area you would like to live in and offers accurate information about local infrastructure, school systems, water and sewer charges, public transportation and other concerns that impact your decision to rent or buy a home.
He takes care of the tedious process of negotiating the best deal for you. With skill and expertise, he knows the trends prevailing within the local property market and the competitive prices for various properties. You can bank on him to ensure the best deal and save your hard-money. His commission is also negotiable in most of the cases, depending on the level of involvement and effort put in.
He acts as your representative throughout the entire buying or selling process and therefore you need a reliable person you can fully trust in matters of right price and the suitable property features you need. He follows your instructions, works tirelessly to minimise your daily involvement in the matter of sale or purchase and seeks your presence only when it is unavoidable – to screen the best options for closing the deal.
His knowledge about local laws related to the buying and selling of property helps you avoid legal issues. It ensures a smooth deal without any potential conflicts. A legally binding contract is drawn up and he helps you with all the paperwork, referring you to the appropriate professionals for dealing with all the legal matters.
As his up to date with current trends, he nurtures contacts and the professional network to flourish his business. This enables him to be aware of a wide range of available property in the area and suggest options to clients with the help of fellow professionals. Not having an intermediary will deprive you of this big advantage. There is a limit to searching properties online or seeking references through your contacts, but if you have an agent, then there is no limit to the options he can suggest with ease. Most of his suggestions come pretty close to what you look for.
Having him on board ensures maximum exposure for your property. Years of experience built an exhaustive database of potential customers and he refers your listing or requirement to generate leads. Gives sound advice on the market value component to price it realistically so that it is sold faster. He provides a visual presentation of your property and suggestions to enhance its marketability and coordinates marketing and advertising of your property on various platforms. Besides, the previews and arranges a walk through each potential home, to show properties that match your requirements and answers all your queries at various stages of the engagement to keep you updated of the progress achieved and ensure your satisfaction.