“Call Me When You Find A Great Deal.”
From the perspective of someone who doesn’t live and breathe real estate, saying the above phrase to your Realtor probably seems like a smart thing to say. I say this because I’ve heard it from some people who I know to be very intelligent and even business savvy.
On its own, it is not however, a good way for a would be client/buyer to get their Realtor to do so.
Well, quite simply… of course you want a good deal. That goes without saying. I’m sure that every Realtor out there has heard this sort of request a thousand times. As we hear it so often from so many people, and because most people who say this aren’t actually serious or know whats entailed in actually getting those deals, how are we to know which of those many people to go to when we actually find one? After all, we are only paid when we sell something and spending time hunting for deals for people who aren’t serious rather than spending time working with those who are is a great way to go bankrupt.
So, in order for you as a consumer to stand out from the crowd and show up on the Realtor’s radar as a “go to” person for these deals, here are some tips:
Are You Sure This Is The Route For You?
First and foremost, YOU need to understand that “a great deal” that comes your way is probably not going to be a suitable home for you.
Say for example you are a youngish family of four and you have an average income. For you, that $450,000 house that would normally be $500,000 if it wasn’t for the dramatic divorce that is making the owners sell it just to get rid of it, is not going to be an option for you because you probably can’t afford it. Even if you can, it may not be your tastes, or in the wrong part of town, it may be too old, or too small etc. Or maybe the property is a an old trailer that should be priced at about $90,000 but is price at $70,000 in a 55+ plus park. (For retirees.) Or an empty lot. I could go on because there are so many types of properties out there, and the majority are not suitable homes for any one person or family, therefore neither will the majority of “great deals”.
If it’s a home you want, figure out what you need, want and can afford first. Then go out with your Realtor looking at homes and choose the best one for the best price based on what’s available. That’s the conventional way and I think it’s a good, tried and true system for finding a good home for you. If you get a home that you like, at a price you’re comfortable with, THAT’S a good deal. It’s no good getting a great deal in a home you can’t enjoy living in. A happy home is a pretty good deal if you ask me.
Make sure you’ve already been pre-approved by a mortgage broker and make sure your Realtor knows it. This gives the Realtor a price range to work with so that nobody’s time is wasted by excited phone calls where the Realtor says they have this great deal for you and you have to contact the RIGHT AWAY for places you can’t afford.
The broader the price range the better.
Have A Purpose In Mind
If you have a specific plan for the property, let the Realtor know. Try to be general, otherwise it won’t work. You see, it’s only once every few months a Realtor finds out about a smoking deal before its been jumped on by the others. And that’s including all real estate, without things like price ranges or property types!
An example of what you want to say might be “I’d like a house to rent out.” or “I’d like an older home that I could rent out until the markets rise sufficiently and then renovate and sell.”
Be Ready to Move Fast
Let your Realtor know that you’re ready to make that offer the same day you hear from your Realtor, and have money on hand to pay for deposit etc. A really good deal causes a feeding frenzy until its snatched up, which usually only takes a day or two. You’ll need to move quickly before anyone else finds out about it.
Decide Quickly How Badly You Want It
Be prepared to make offers above asking price if you really want the place. The feeding frenzy often generates multiple offers, which means you’ll be competing with other buyers who are just as eager as you to buy this smoking deal. You just might not get it either, so don’t be too disappointed if someone else outbids you and they get the property.
If the above info hasn’t shaken you off the path of wanting to get a “great deal”, then you sound like someone who is serious about getting into real estate investment and therefore someone I, as a Realtor, look forward to having the chance to do business with. If you have read the above and no longer wish to wait for that “great deal” but still want to buy a home or investment the more conventional way, then you too are just as much someone I look forward to doing business with. And yes, I’m always looking for people who want to sell their homes too!