Everybody wants a deal!
Especially when looking for a new home or a property to invest in, we all want to feel we received value for our money. Nothing feels better when showing off your new property than to be able to say, “…and it was a great deal!”
Foreclosures And Short Sales
When it comes to real estate, foreclosures and short sales often sound like good deals.
A foreclosure means the owner failed to pay his or her mortgage payments and the lender seized the home. The lender (in many cases a bank) now owns the home and often wants to sell it quickly.
A short sale means the owner of the property is selling the house for less than he or she owes on the mortgage. This can sometimes indicate that they have no choice but to sell… and sell quickly.
In either case, it is sometimes possible to get a good price on a home, but it may not always be the best way to go.
One reason to avoid foreclosures and short sales is due to a lack of inventory. Often the availability of these types of sales ebb and flow as the market moves up and down. You may see many foreclosures for a while and then, as the market changes, not see another for quite some time.
Another reason these sales are not always a great “deal” is they typically involve bottom-line numbers and zero emotions. Negotiations might be tough if the owner is already taking a loss on a property or a bank can afford to hold on to a property for a long time.
You can sometimes find a great deal, but it generally comes down to a waiting game of patience and persistence. You need to make sure you are not in a rush and that your real estate agent truly understands the flow of where the market is going and how to stay ahead of it. I call this “finding the next hot pocket.”
Investors often want to jump in and have an “I want it now” mindset. If you take your time and work with a professional real estate agent, they can coach you to remain patient and evaluate each property until the true deals are there. You have to think about what is best in the long run.
Whether you are buying a property to hold on to it or buying it to resell, the bottom line is that the numbers have to make sense. Sticking to the numbers and never letting emotions get in the way is the key to becoming a disciplined and, therefore, successful investor. It's easy to get caught up in a deal, then when it is too late, realize that it wasn’t quite such a deal, after all.
Help Us Help You
Many agents know what buyers and investors are looking for; after all, we work with them all the time. If you have a real estate investment vision, share it with us so we can help you bring it to light. If we know what you are looking for right now, and what you want your investments to look like a few years down the road, we can offer thoughts and suggestions about the types of properties that will maximize your potential revenue.
Contact the professionals at KBT Realty
and let us use our expertise to help you find the right investment property, whether a foreclosure, short sale or just a plain good deal!
With a mortgage background stretching over the course of eight years and several years of experience in the Real Estate industry, Tyson Emery has proven that he gets the job done. His Real Estate career has allowed him the privilege to work with several clients, which has consistently landed him in the top one percent every year. As an owner along with Kirk Pugh and Becky Brown, KBT Realty has continued to grow by providing an environment to agents that concentrates on training and personal growth. Their philosophy is to figure out what you are good at and help you become great.