Finding a Great Deal

4 Replies

What are some other ways can I find a GREAT deal other than looking on the MLS?

One other way is to find motivated sellers.  This could be done using bandit signs, yellow letters, door knocking, etc.  

I agree with Robert above, but don't place signs illegally. 

Form relationships with local investors, agents, and wholesalers.  Let them all know specifically what you are looking for. Be ready to buy when they bring you a real deal. Develop a reputation as a closer. 

Aside from finding a motivated seller which was stated by @robert, hire an expert and let them find the  best seller for you. These people are trained and expert in scrutinizing sellers; being able to differentiate bad to good sellers. Many buyers find realtors by asking friends and family for recommendations. You can also find a realtor through an online directory.

HOWEVER, keep this in mind. Real estate agents perform a variety of useful services, including advising the client on the state of the market, helping the client view homes for sale, writing offers, negotiating with sellers, and guiding the buyer through the purchase paperwork. But conventional real estate agents have a big downside: they charge a lot of money. In many places, it's as high as 3 percent of the sale price. So, for example, if you buy a $400,000 house — the average price of a home in the New York metropolitan area — most agents will charge $12,000. Unfortunately, it's not easy to avoid paying this fee. You might think you could skip hiring an agent, represent yourself, and pocket that 3 percent fee. But that's not how the market works. Most sellers sign contracts promising their agents 6 percent of the sale price, with half the money going to the buyer's agent. Only another realtor — not the buyer herself — can collect that 3 percent fee. 

Originally posted by @Joseph Chen :

Aside from finding a motivated seller which was stated by @robert, hire an expert and let them find the  best seller for you. These people are trained and expert in scrutinizing sellers; being able to differentiate bad to good sellers. Many buyers find realtors by asking friends and family for recommendations. You can also find a realtor through an online directory.

HOWEVER, keep this in mind. Real estate agents perform a variety of useful services, including advising the client on the state of the market, helping the client view homes for sale, writing offers, negotiating with sellers, and guiding the buyer through the purchase paperwork. But conventional real estate agents have a big downside: they charge a lot of money. In many places, it's as high as 3 percent of the sale price. So, for example, if you buy a $400,000 house — the average price of a home in the New York metropolitan area — most agents will charge $12,000. Unfortunately, it's not easy to avoid paying this fee. You might think you could skip hiring an agent, represent yourself, and pocket that 3 percent fee. But that's not how the market works. Most sellers sign contracts promising their agents 6 percent of the sale price, with half the money going to the buyer's agent. Only another realtor — not the buyer herself — can collect that 3 percent fee. 

I'm likely going to try and use a real estate attorney to put a low offer in on a house I like.  The listing agent wont need to split his commission so there will be a real motivation for him to convince his client to take my lower offer.  Like you said, on a $400,000 home thats $12,000 the listing agent will get to pocket, so I should be his best friend.  The real estate attorney will help me with everything else I need for about $2,000.  If that helps me knock an extra $25,000 off the listing price its well worth it.   

I think this only works if: 1) you already found the house you like.  2) The seller is motivated.  3) The house has been on the market for a little while 3+ months.  4) You are currently the only person making an offer.  5) The price of the house needs to be high enough for the commission savings to be worth it $400k+.

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