We all love a bargain!
But even the most hardened property fan would admit bargains are rare in the highly competitive real estate market.
Even buyers seeking fixer-uppers risk renovation costs ballooning if they do not do their homework correctly. What may seem a bargain can quickly turn into a nightmare of rising costs for building materials and labour.
However, you don’t have to take such a risk to find a bargain.
There are strategies to help you find a home that might not be pushing the limits of market value.
It would be wrong to describe them as “cheap”, but equally they won’t be making Sunday newspaper headlines for being purchased at crazy values in a frenetic auction-bidding war among buyers.
So, where do you find these properties?
Here are six tips for finding a competitively priced home:
Time on Market: This is a favourite signal that a home can’t find a buyer. If the “For Sale’’ signboard has been hoisted for more than six to eight weeks, then the vendor is struggling. Depending on their attitude, you could negotiate a good discount. So, watch for homes languishing on the market.
Shabby chic: Many buyers want homes that require zero work. They just want to move in and get on with their lives. Properties that are on the shabby-side inevitably find a smaller pool of potential buyers. Laser in on these opportunities.
A little compromise: Most families want to buy a detached house. But if you’re prepared to compromise, you’ll find cheaper choices. Look at semi-detached houses and older townhouses. Multi-generational homes are another great-value alternative if other family members are willing to share the cost.
Buy one, rent one: Duplexes offer a good opportunity. They’re not cheap but have the benefit of allowing you to live in one apartment and to rent the other. This improves your cash flow and can make your home purchase more affordable.
Time capsule: Homes with old architectural features can send buyers scurrying for the door. It takes a discerning buyer to like a split-level home these days. And a 1970s kitchen and bathroom combo fill many with dread. In the right circumstances, these homes are excellent buying.
Foreclosure auctions: You need a keen eye and lots of determination to maximise these opportunities. The best strategy is to stay in close contact with local real estate agents and be patient.