Re: Negotiating/finding the best deal possible… - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on November 08, 2002 at 18:57:45:
I’d suggest that the best route is to rent for about 6 months, so that you can get a better feel for where you want to live. No rush in buying a house, in my opinion.
To get the best deal, you have to be patient. What you are doing is approaching a home purchase the same way that one would approach an investment buy. Usually, the two are very different. When I buy an investment property, I don’t really care about the location, layout, size, number of bedrooms, amenities, etc. Only, is it a good price and can I get a high rate of return on my investment.
When you buy your own home all those things I mention come into play. You will be selective. Now, if you go to real estate agents, they will pump you for what you can afford and what type of house will satisfy you. Then they will show you three or four over-priced houses and finally one that is at or very slightly above market value. Instant love. Contract. Ka-Ching, commission in pocket, now on to the next young couple.
If you really want a good price, you need to study the market values in the neighborhoods where you would consider living. Then watch for every possible below-price property coming on the market. And shop like an investor, marketing to owners to sell to you. Read up on marketing and use what makes sense. I remember a buyer of a house in Menlo Park, CA being very happy. They watched the newspaper advertisements every day. Finally a couple doing a for sale by owner put in a property at $30 or $40K below market value. Over that day to look at it. Signed the contract that evening. Bought the house. This is the way to think.
So, you need a place to stay while you wait for a low-priced property to come on the market. That is a rental.
I don’t really think you can accomplish a lot by staying in the area for a week or so. I’d recommend that you not worry about the house buying issues at this time. Enjoy the trip. Maybe accomplish some other things. Save the house-studying and buying until you are living there. If you disagree, then I’d recommend getting good maps. Narrowing down where you might want to live, and starting to get comparable information about the areas. Then, when you get back to home, you can keep in touch with the marketplace by going onto realtor dot com and perhaps even the local listing service directly. Now, this is not to find you a home. This is to educate you about what properties are listed for and, from that, give you a guess as to what they sold for. When you are in the location, you will want to find out what percent of asking price properties usually sell for. Then you can guess what the houses on realtor dot com sold for when they stop showing up. Or you could call the agents and find out what they sold for. The properties in the MLS service or on realtor dot com are not likely to be bargains. And you indicated that that is what you wanted.
The patient investor gets the good deals, if that investor is constantly scanning the market for potential deals and that investor knows a good deal when it is seen. So, this is what you will be doing with your house purchase.
Good Investing**********Ron Starr**************