In a slow market, investors have an opportunity to pick up property on the cheap.There are times when you should pounce and times when you should wait.
Here are our top 8 tips for acquiring property in a downturn:
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Research the prices in the area that you are looking at and familiarise yourself with what is considered low and excessive for the area.
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Get all your finance pre-approved before you start looking so that if you need to- you can ounce on any deals
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Look for properties that have been on the market for several months and have undergone several price reductions
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If the open house is empty, it might suggest the seller has moved/is divorcing- so they may be a motivated seller
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Negotiate with your real estate agent-ask them to sell/buy a current property for you so that you can get a discount
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Consider selling it yourself
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Ask the agent if they will lower their commission
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Carry out all the appropriate title searches
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Don’t get into a bidding war and don’t be afraid to walk away-there are plenty of deals out there in a down- market
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Be prepared to hold the property for some time. A lack-lustre market is not the climate for flipping for a quick profit
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Use RealRenta to manage your properties. A slow market is definitely not the time to fritter away your rental yield on unnecessary property management fees.
