Even when the real estate market is slow, there are great deals to be found if you know how and where to look for them. The conventional method of searching the MLS is a first step that almost every new investor reverts to. But the problem there is that everyone is searching the same site and you are not likely to find a great deal that isn’t going to quickly generate a bidding war. But trying the less popular methods will provide you with some great opportunities.
If you are out looking at a property in e neighborhood that you like, don’t be shy. If you see a homeowner out in the yard, stop and ask if they know of anyone in the area who wants to sell their home. Finding a seller who is not yet under contract with an agent can save you the commission fees and possibly even get you a better deal as they would be happy to sell quickly and move on with future plans. Also, if you see a home that looks like it is in disrepair or needs some care, knock on the door to see if the homeowner would be interested in selling. Some older homeowners just can’t keep up with yard work and maintenance but have not decided to sell yet. Offering a purchase price for the home as is would relieve the homeowner of having to hire help to prepare for a conventional sale and could save you time and money.
Don’t rule out a house that is a fixer upper. Understand that a house that needs repairs and renovations does not show well. For that reason, the asking price could be far below the market value. The owners know that they need to have the right buyer come along and be willing to invest in the property for them to be able to sell. You will often be able to negotiate more with the owner of a fixer upper than a turnkey home. Compile a list of needed repairs and then apply a dollar value to the list. Subtract the potential cost of repairs from the asking price of the house and make your offer accordingly. Be prepared to negotiate back and forth with the owners as they will claim to have accounted for some of the repair cost in their list price. But in the end, you have a better chance of getting that homeowner to meet you closer to the price you have offered.
Finding a cheap house in Phoenix is not impossible but it can take a little more effort than just searching the MLS listings online. Be ready to invest some time and effort to look in desirable neighborhoods, talk to residents and spread the word that you are actively looking for a home to purchase. You can also learn a lot more about the available inventory by visiting www.azrealestatewholesale.com to learn about the homes that they have to offer as well as their expertise in assisting you in finding a great investment property in the area.