Real Estate Tips That Never Go Out of Style

by : Craig Berger

The real estate market may have its ups and downs, but successfully getting a bargain takes experience, finesse and sensibility. Of course, it never hurts to learn a few new tricks.

Low Real Estate Offers

Low offers are one way to get cheaper property. However, be realistic in what price you offer. Most people are not going to say no to offers that are 15 to 20 below the asking price.

Sellers who are in a hurry to sell are more likely to accept your bid. Find out whether the seller needs to relocate for a new job or has to come up with money quickly.

The other method is not to limit yourself. Make plenty of offers on lots of homes and hope that one will accept it. In order to turn the property back into a profit, you need to aim low, since transaction costs are around 10 percent of the total. The drawback to this is that you will appear pushy and unreasonable to the real estate agent and sellers. If you do not think the homeowners are willing to give up the house for that price, move on.

Value More Than The House Value

When the market is hot, prices are through the roof. Unless you somehow improve the property, the median price is what you will most likely get. If there is an incentive to fix up a part of the house, such as repainting, and the cost of replacement is less than the price the buyer is willing to pay, then go through with the improvements. Otherwise, the property is not the only thing the buyer purchases.

If you intend on buying a fixer upper in order to turn a profit, start at the end (your sale price once the house is finished) and work backwards. What is the total cost for repairing the property? Subtract all the costs and see how large the profit is. This will give you an idea of how high you can bid.

When looking at the value of the house, calculate any additional costs that will arise during the buying process. This includes the price, any repairs the house will need in the future, realtor fees, utilities, taxes, selling costs and advertising costs. You do not want to come up short and realize your profit is much smaller than anticipated.