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Lets discover the 5 things for you to do when trying to find a house with equity.
On a $200,000 home, you only need the seller willing to budge 10% on their price to put $20,000 of equity in your pocket. That is not much considering that a real estate agents commission that this seller would pay, if it is listed on the Multiple Listing Service with a Realtor, is 6% by itself.
This isn't about low-balling and trying to take advantage of a seller. This is about finding a seller who is happy to give you a soft discount on their home due to some level of motivation they have.
Let's explore how to do this.
1- Be Patient and Committed
The first and most important thing to keep in mind when 'hunting' for a really killer deal with tons of equity is to be patient and stay focused.
You have to remember that if these kinds of homes came to the market a 'dime a dozen', and if it was easy to find a home with equity we wouldn't need to be having this conversation right now.
In today's world it is more realistic for you to expect to have to make several offers and look at several homes in several different neighborhoods. You will be taking a little extra time and attention as you search out and find those 'jewels'. They are out there, so let's figure out how to find them.
2- Target Motivated Sellers
If you are looking at homes, whose sellers have 'zero motivation to sell', you are barking up the wrong tree.
You need to look for sellers who are in a situation such as; divorce, job change, late on payments, are trying to transition into a new home themselves, or who for some reason needs to sell quickly and aren't necessarily needing to hold out for full price.
This is the key to your success, so please understand my point perfectly.
If the seller has a 'need' to sell, they will be more likely to give you the flexibility you need to get the good deal you want.
3- Accentuate the Negative Features in Their Home.
As an Example; if you have a motivated seller and you are looking at their home; you need to begin talking out loud about each and every negative feature that you see.
As you walk through their home'
'If you notice carpet damage or stains, you simply say, 'Well it looks like the carpet could use replacement.'
If you notice smears or smudges on the walls, or even outdated colors on the wall or wall paper, you simply say out loud, 'I would need to bring a painter in to update this paint'
If you notice any neglect in the yard or landscape you would say, 'Well, I will need to hire a landscaper to do this and that.'
You get the idea, right?
This is critical because if the seller is willing to sell for less than the home is worth anyway, and their motivation is high to begin with, you will be able to specifically identify and justify taking their wanted asking price and continue backing it down.
4- Spread the Word That You are Looking for a Deal.
If you are looking for a 'deal', then you MUST tell tons of agents, lenders, brokers, and friends that you are actively searching for a motivated situation that you can capitalize on.
Too many people make the devastating mistake of thinking that they only need their one agent to help them. Your agent might get lucky and happen to trip across a perfect home for you, but most often they will not.
If there are 1000 agents in your town, you have to consider that on any given week, at least one of those agents has a really sweet deal will come across their desk. If they know you are looking for one, guess who they will call.
But if you have limited yourself to only telling one or two people in your town that you are 'hunting for a deal', what is the likelihood that out of the several hundreds of lenders, bankers, agents that are out there 'in the mix', that your one or two contacts happen to be the ones to find the deal.
You want a lot of lines in the water in order to catch the big fish.
5- Don't Ever Be Afraid to Walk Away.
You will Fail at your goal if you become emotionally attached to the home, the seller, or anything else. You need to be able to make your offers and be absolutely okay with a rejection or counter offer.
If you are asking the seller to discount their home price for you, you need to understand that some sellers will be willing to work with you and others will not. You can not be embarrassed or ashamed to stick to your guns about what you want to buy the home for.
If you get wishy-washy and feel pressured into spending more than you want to, you are the one that looses. Every seller will 'want' you to offer more. All sellers 'wish' they could get full price and have an easy, fast transaction. So, all of them will try to get you to give up your position and pay more than you want to.
If you are already certain about what you will or won't pay for the home before you make the offer, and you are willing to walk away from the home if the seller can't work with your offer, then you are doing it right.
Lastly, remember my first piece of advice.
Be Patient and Committed. You will get a home with an extreme amount of equity if you will remain patient. Be willing to make several offers. Stay focused on searching and sifting for the motivated sellers. And furthermore, solicit all the help you can from agents, lenders, and bankers in your area.
Good Luck and God Bless. |
| Author: Dan Ostler |
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Author Bio:
Bio - Dan Ostler is the owner of www.LeaseOptionHomeBuying.com. Dan is an author, speaker, business owner, investor, and one of the nations leading Lease Option Consultants. He has been offering housing solutions and consulting advice to families with credit issues in all parts of the country for the past 8 years, and welcomes all visitors to his website for tons of **FREE** Information. |
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