Everyone loves a bargain, and that applies to investing in a home, too. With the housing market’s recent upswing, it’s important to get to know the bargain hunter. Here are some quick facts to familiarize you with this segment.
Bargain Shoppers: Who They Are
• They hope to pay a price below market value. Finding a bargain, to many, is like a medal recognizing their business-savvy skills and shrewdness.
• They can be investors looking to earn a profit on a property they can buy for at least 30% below today’s current market value. Some may want to buy it as rental property, vacation property or to add to a steady income stream.
• They might be DIYers, or “flippers.” Willing to do the work, they look for undervalued property, or property in bad shape, that they can turn around for a minimal investment of time and money.
• They are good negotiators.What They Value
• Profit. Resale potential is a top attraction.
• Risk. Finding a bargain property in an up-and-coming neighborhood can be risky, but bargain hunters may be willing to take the chance.
• Return. Taking care of the big things in a run-down house, like the plumbing, can be more valuable than making cosmetic changes to a house that’s in top condition.
• Resources. Like dependable contractors and other trades experts.
• Location, location, location.What They Want
• Flippers may look for new homes, fixer-uppers or foreclosures
• Reliable, current information on trends, consumer spending, mortgage rates, etc. to be ready for the next opportunity. Also, advice from knowledgeable real estate experts who know the market well.
• Solid financing with pre-approval from lendersNext
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