How to Buy an Underpriced Home

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Last week I listed an investment property for sale and we priced it slightly below market value.  I got 4 contracts within 24 hours and all of them were at or above list price.  Why?  In order to move a property quickly you need to let buyers feel they are getting a deal, which they are.  Pricing things too high and sitting around and waiting just makes the property look tired, old, and stale.  You certainly don’t want that!  Pricing homes right is what keeps our market flowing; it really benefits everyone to move properties quickly.  Greed is what killed our market several years ago, so there’s no need to go down that path again.  When you see one of these deals hit the market, here are a few tips to help you become the lucky person to end up owning it.

  1. Make your highest and best offer first.  If you know you are willing to pay more and it’s that good of a deal, chances are other people are thinking the same thing.  So offer your best price first.  The reasoning behind this is that it is possible the seller will just accept your offer and not go through the whole highest and best scenario, making you the lucky bidder immediately.
  2. If you know it needs work and you are going to have to put some cash into it to bring it up to how you want, consider forgoing the home inspection period and putting zero days for an inspection.  There could be major things wrong with the home, so please do your homework ahead of time; but know that if a seller sees you as the buyer waiving the inspection period there’s a good chance they’ll take your offer.  This isn’t for the faint of heart, so please tread carefully and act wisely.
  3. Paying cash?  Then close quickly.  Close in 2 weeks or less.  Make the seller want to deal with you.  We often get offers for cash buyers but they are not closing for 30+ days.  That is ok, but certainly not ideal as a seller.  The longer a seller has to hold onto the property, the more money they are losing.

 

If you want it then act immediately – opportunities come fast and leave fast, don’t let them pass you by!  Good luck and I hope you buy that great deal!

 

Gabe Mellein was voted a Top Real Estate Agent – Exceptional in Service and Overall Satisfaction by Gulfshore Life Magazine in 2012.  He is the broker of Gulf Pointe Properties, Inc and has over 8 years experience in the SW Florida Real Estate Market.  He is a member of The Naples Area Board of Realtors, Bonita Springs – Estero Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, The Florida Association of Realtors, The National Association of Realtors, and is nationally certified in Feng Shui for Real Estate.  Please contact Gabe at:  239.825.2234, Gabe@GulfPointeProperties.com  or www.GulfPointeProperties.com

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