Finding a bargain in the property market can be time-consuming and elusive.
Here a 5 tips to nab a bargain in property.
1) Search for Properties Having a Price Reduction
A price cut sends a signal that a seller is serious about shifting their property and is not simply speculating. Typically, when a property first goes to market, the price is aggressive. If there is little footfall, an agent will have that difficult conversation with the seller about adjusting the price. Be savvy, though, as some properties are clearly over-priced thus a price reduction only brings the price level down to market value. Don’t be shy in negotiating further.
2) Search for Properties with a Combination of Multiple Price Reductions and Time on the Market
Tailing-on from the point above, properties with multiple price reductions as well as above average time on the market may be worth a closer look. The combination sends a strong message that the seller is motivated. Buyers should be cautious in ensuring there are no underlying issues with the property and proceed accordingly. However, if other buyers are getting scared off, this may be a good time to negotiate hard.
3) Look for Scope to Improve
Searching for a fixer-upper can be a difficult task if one isn’t aware of costs associated with carrying out the works. Many times a fixer-upper may be priced as though the work had already been done thus no bargain in the end. However, if you are not afraid to get your hands dirty, a property requiring work could, at the very least, allow you to economically-introduce repairs and renovations at your own pace. When a property possesses planning permission there may be scope to expand. An increase in living area could pay off later when you sell the house.
4) Cash Only Purchases
If you are lucky enough to be cash heavy, then searching for properties that no lender will touch may be a good strategy. Properties that are in dire need of repairs, having a short-lease, or located on an upper floor of a tower block are prime candidates for cash-only buyers and clears the playing field for hard negotiating. Ensure you are aware of all upfront and longer-term costs. These should be factored into your offer.
5) Search By Rental Yield
By targeting properties offering high rental returns within high capital growth areas, one can enjoy a monthly income stream whilst their asset appreciates. A nice doubling down in the property game.