There is still a way to buy real estate at discount prices. In the right situation, you can negotiate with a seller and get them to discount their price by a good amount, even by $15,000! Every seller will not be willing to do this, so you have to find the right seller to be able to pull this off. They are not too hard to find, however. Here is how to find sellers who are willing to sell at a discount!
The reason home prices are so high today is because the seller has all the leverage. There are a lot of buyers looking for a home, but there are not enough homes to satisfy the demand. Not all seller’s have leverage, however. If the seller is dealing with some sort of problem, you as a buyer can help out the seller by solving their problem… in exchange for a nice discount. Therefore, if you want to find a good deal in real estate, you need to find sellers who are dealing with a problem. Below are some ways to try to identify sellers with problems who may be willing to sell their home at a discount.
Homes That Have Been on the Market for a Long Time
We all know how fast homes can sell in today’s real estate market in 2022. If sellers start to see that their home is not selling, they will start to get very nervous. In today’s market, if a home hasn’t sold within the average market time, something is wrong with the property. It doesn’t necessarily mean that that property needs a ton of expensive repairs. Buyers can be extremely picky and pretty easy to scare off.
A scenario like this can create a great opportunity for the savvy buyer. If you find a home with a problem that you believe you can deal with, then you can use this to negotiate with the seller to take the property off their hands in exchange for a reducing the price!
“As Is” Homes
When I see a home that says “as is”, I often see a seller that is frustrated and just wants to get rid of the responsibility of the home. These sellers also may have some sort of financial situation they are dealing with (they are short on money). Otherwise, why wouldn’t they make the repairs themselves and try to sell for top dollar?
Just like when homes that have been on the market with the long time, if you can find out what the problem is, and it is something that you feel you can handle, use this to negotiate a discount on the property!
Homes With Tenants
Buying a home occupied with tenants sounds like a scary thing. However, think about it from this perspective. If you are afraid to take on a property with a tenant, what are all the other buyers think. Also, how do you think the seller feels? How big of a discount do you think they would be willing to give to get rid of this problem?
The tenant doesn’t even have to be a bad, the seller may just be tired of being a landlord! Selling a home with a tenant is harder because most buyer’s do not want to take on that responsibility. At the same time, sellers don’t want to get rid of the tenant before they sell because then the seller is stuck with paying for an extra mortgage until the home sells.
Even if the tenant says they are going to move, there is no guaranty that the seller is actually going to move. If they don’t, then whoever owns the home will have to go through the eviction process in order to get them out. No one wants to go through that, as that process can save months.
I have had multiple buyers get a huge discount on real estate because the property had uncooperative tenants. I have seen a buyer get the seller to drop the price by $30k to buy the property!
Any questions or comments, feel free to reach out to me here. Thanks and have a great day!