If you’re interested in real estate, you need to know how to spot a good deal. Whether you’re investing or trying to find good homes for clients, the ability to analyze deals quickly is a good skill to have.
Today, let’s take a look at some of the basics of finding and analyzing deals quickly.
why some houses are cheaper
I’ve found that there are generally 3 reasons that houses are listed for what seem like good deals. If a house seems significantly cheaper than what it’s worth, it could be because the house is not desirable, the sellers are in a hurry, or the sellers don’t want the stress of selling the house.
The house could be undesirable for a number of reasons. For example, the style could be outdated or it could have some significant damage in need of repair. In either scenario, if the sellers don’t want to upgrade or fix the house, they could sell it for a lower price and let a new owner take care of it. Many cheaper listings need some sort of renovation or repairs to help make the house more desirable.
The sellers could be in a hurry to sell the house for many reasons. Maybe they need to sell the house so they can use the money for something else. Maybe they’re moving out of state soon and don’t want to sell their house from afar. Regardless, one way to sell a house quickly is to sell it for a lower price.
Finally, some sellers simply don’t want to go through the hassle of selling the house. The best way to sell a house quickly is to sell it for less than it’s worth. Someone will certainly try to buy it, especially in this market.
improve the property
If you’re an investor looking at a property, one of the first things you should be asking yourself is “How can I improve this property?” This is especially true if you are evaluating what could be a good deal.
For example, you might consider flipping the house if the property is older and outdated. It’s usually pretty easy to think of ways to improve the house when it is outdated. A fresh coat of paint, an updated kitchen, new bathrooms, and upgraded appliances are common improvements.
The house isn’t the only way to improve a property. Often landscaping can go a really long way, especially if you add something unique. Adding a pool can also be a huge improvement, especially here in Texas.
Meeting other more experienced agents had a huge impact on my career in real estate. Often the best way to learn is to get plugged into a network or community of other agents that you can learn from.
Bouncing ideas off of other agents or investors can be a great way to evaluate deals and determine whether or not they are worth pursuing.
There’s a lot to know when it comes to investing in real estate and having an expert that you can go to can help you avoid some mistakes.
If you would like to get connected with an expert, check out our parent company’s website thediyrealty.com. We’re doing a lot of things to help investment-oriented real estate agents over there including a free webinar for agents who want to start investing.
If you would like to buy or sell a property, don’t hesitate to call the number on our website. We would love to help you with all your real estate needs.
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