UNDERPERFORMING PROPERTIES. Sometimes it is as easy as looking at properties that have been on the market for a long time compared to other properties in the same price range.
Often if sellers are overly optimistic and start with their homes too highly priced, and then wait too long to respond to the lack of interest, the property sits on the market for a long time, and then sells for much less than it would have.
Every time I take a listing I look at the average days that similar properties are selling, and then set a minimum of showings by realtors in the first two weeks of that time frame. If the house does not get shown I have a built in price reduction as the market is speaking that they believe the house is over priced.
As a buyers representative I like to look at properties that are not only beyond the average days, but also properties that are coming up on 90, 120 and 180 day intervals. These are often nearing the expiration of their listing contract and the agents want to move these properties out more aggressively than at other times.
The other properties to look for are homes that do not have street appeal, but whose issues can be overcome relatively inexpensively. Just a plain looking house with no architectural interest, can often be made to be more interesting inexpensively. A home with unkept or terrible landscaping might be another candidate. An oddly painted house often does not get the same attention as well, and can be a great buy.
Many homes have very limited showing times, they may have a tenant or even large dogs, that make it more difficult to show. These properties can slip into the scenario that they do not sell in the average amount of days and then can be perceived as there is something wrong with them, as they have not sold….
Possible good buys, lastly, are homes that have a less than desirable floor plan. Often times these problems can be solved by moving a wall or two. While the expense is higher with these, as flooring has got to be replaced, they can be significant purchasing opportunities.
I have a team of resources that I am happy to share with you and will do everything to make the remodel process as easy as possible for you. What I DO NOT encourage, is anything that is a good price based on a less desirable location. There is only one important thing in Real Estate. LOCATION, LOCATION, LOCATION.
So go shopping, look at all the houses that have the move in ready features that you want and then find one that you can do the work yourself. Yes there is time involved. But at the end you have exactly what you want at a lower price tag.