“Seek and ye shall find,” There is no guarantee, but this adage has stood the test of time. To buyers in the greater Boston area, prices might make you give up and have another cup of coffee. Unless you can prudently borrow money and have a chunk for a down payment, this might seem like a pipe-dream. However, there are ways that can make the seemingly impossible-possible. Here are a few:
- Pick a manageable market and learn it. “Work you own land” I call it. Focus on neighborhoods/towns you are interested in. It’s too difficult and time consuming to apprise yourself of a large area. Know what properties are selling for, know the neighborhoods, attend open houses, go online and see what’s available for how much. Keep key numbers in mind so you can quickly compare properties–square footage, lot size, age, condition, etc. If it’s a condo, how much is the HOA fee? If one condo has an unusually high HOA fee, find out why.
- Get to know people. Speak with others you meet at open houses. Find a real estate agent and tell them what you’re looking for. Ask them to send you new properties in your range that come on the market. This will help keep your finger on the pulse of your “land area.” If the agent is not sending you new listings—get a new one. Speak with real estate agents, lawyers and investors. They might know about off-market deals or properties that might available below market value.
- Look for a distressed properties and contact the owner. If someone is neglecting their property they might be ready to give it up and be motivated to consider your offer. Be respectful and sensitive when you contact them; their situation might be difficult. Contact neighbors, too.
- Negotiate: Be prepared to negotiate aggressively. Many sellers are motivated by circumstances and may accept a lower offer.
- Attend Auctions: This is an area that can be time-consuming but can provide big savings; you must learn the ropes. Attend auctions and talk to people there, read books. Looking for auction bargains is not something to do casually, you have to stay on top of it.
- Properties din Probate. If the owner passed away the Executor might need to sell the house, and the sale proceeds go the heirs. They may be willing give you a discount just to get the house off their plate. They may be less willing to drive a hard bargain compared to a perdon selling their own home.
- Look for Off-Market Deals: Talk to people in your “land area,” see if they know someone who is considering selling. Try direct mail to specific neighborhoods or properties to find off-market deals. Two companies people I know have used are Prospect Plus https://www.prospectsplus.com and Wise https://wisepelican.com. This could connect you with a seller without biding competition from other buyers.
Make sure you have studied up and spoken with someone who can see what you’re doing with neutral eyes. Best of luck!