18 easy steps to buying a home at a bargain price
What is a “distressed” property? What is “negotiable” real estate?
A distressed property is one with a distressed seller. Job loss or transfer, divorce, death, pending foreclosure, and lack of money make sellers sell fast for less. Discovering the seller’s problem and finding a solution is the key to buying a property on sale. A distressed property can also be a “doghouse,” a dumpster, or a repairman. Doghouse owners are not always salespeople in distress.
18 easy steps to buying a home at a bargain price
1. Get good advice from successful investors. Ask friends and real estate agents for investor recommendations.
2. Create your own personal “Investment Journal,” such as the Doghouse to Dollars Workbook: Turn Yucks into Bucks Investor’s Guide.
3. Define your investment objectives: Do you want to buy a house to live in, fix and sell, or keep for your future?
4. Get credit reports and scores. Create a file for each credit reporting agency. Take care of any credit problems.
5. Read books and articles on real estate investing. Attend workshops and seminars. Avoid outdated infomercials on television.
6. Get good advice from lenders. Choose a lender with excellent service, a good closing record, and fair costs. Organize financing.
7. Define your target locations: Is your desired property close to your home or work, vacation or second home?
8. Know your target market. Study the sections of real estate newspapers. Pick up the home sales brochures. Look at the sales and write down the prices, amenities, and terms. Follow HUD sales in your area.
9. Interview real estate agents and learn from them. Do not sign any agreements with agents that limit your search for property on sale. (These contracts make the agent pay a commission even if you buy from the owner.)
10. Use agents who know the customs of the local market and guarantee that they will make you many offers.
11. Find a good escrow officer to buy “for sale by owners.”
12. Study home remodeling, magazine and book design. Know the costs of materials, supplies and crafts. Visit home improvement stores. Consider the costs of building materials.
13. Be prepared to see a property for sale when you see it.
14. Make a lot of offers. Bid on the HUD break.
15. Buy only bargain property. Get excellent conditions or concessions from the seller.
16. Plan the home transformation during escrow. This speeds up your working time, saving you money on maintenance costs.
17. Monitor the closing of the real estate escrow. Don’t jeopardize your financing by charging credit cards or making unnecessary purchases.
18. Celebrate your “doghouse” purchase with an open house!
(c) Copyright 2014, Jeanette J. Fisher. All rights reserved.
