Most calls to our Naples real estate office, begin or end the same way these days:
“You know, I’m Looking for a great deal.”
Ahh, the elusive and ever-present search for the home that’ really worth $600,000 but you can get today for the bargain, basement price of $199,000. It’s the deal everyone wants but only the select few have access to. The deal your buddy says he got on that distressed property last month or the one your cousin picked up from the lender at a total steal.
While I can’t guarantee you will get 50% off the list price or beat the “amazing” price your cousin paid, there are a few simple but effective techniques that will help you achieve the best deal and price possible on your next home purchase.
1. Be Ready – When a great deal comes on the market there are thousands of buyers seeing those properties at the same time. Have your funds ready (see #2 below) and write an offer quickly – even if you have not seen the home. Have your Realtor write in a contingency to see the home in-person within a few days of the effective date on your offer. The seller may not always accept a contingency like this, but I’ve seen it work. Just don’t make the contingency for a lengthy period or it won’t be worth it for the seller to take it off the market.
2. Cash is (still) King – Cash is king in this market, but it won’t get you a rock bottom price on it’s own. It’s just one piece of the pie to making a great deal happen. Distressed properties, including short sales and foreclosures, will, almost always, take a slightly lower offer when it’s from a cash buyer.
3. Use the “AAA Plan” & Don’t “Fall in Love” – Falling in love with one property is a sure way not to get a great deal. Instead, have an “AAA plan.” Choose three homes that you can live with and go after them. Tell your Realtor to let the seller know that you are moving on to xyz address if this deal doesn’t work. This isn’t an A, B, C plan. You should feel equally happy with any of the three choices and do your best to keep emotions out of the equation.
Whether you are a seasoned buyer, investor or first-time home buyer, utilizing these 3 techniques in almost any combination can lead to a great deal on your next home purchase in today’s real estate market.
If you have other great deal techniques that have worked for you, please comment and share them below. I look forward to hearing from you!