When you say “bargain house,” what comes to mind? Vacation homes, foreclosures, efficiently upgraded condos, estate homes for sale? To Answer this question, we need to go beyond simple descriptions and look at the what of property values. A home is a structure and its value requires an eye of understanding the worth, marketability and realistic desirability. Desirability and marketability depends on whether or not a particular home can close on an agreed upon price on time and in full as well as on the ability it has to develop marketable appeal. The bargain house takes some work to find, but with a little patience, the owner can be delighted with a real bargain in the end.
Let’s say, for example, that a lot in fierce competition properties nearby an estate home for sale. It features a pool, has stainless steel kitchen appliances, and a payment of $45,000. It is almost brand new.
Seems like a steal, or does it? Subtly, reasonable. The seller of the estate home for sale is helping with the closing deal by offering the property for sale for $50,000. Is it truly a bargain?
Let’s shop around for a little bit. We will review the property values of the lot and the house and apply price adjustments so it prices out very similar to the estate home for sale. The lot is 1,000 square feet with a rental of $1,200 per month. The house is 2,000 square feet with an agent fee of $350 and a payment of $2,500. Using our calculator, we may get around $7,500 for the house. With these adjustments, we can see that the house is at $27,000 less a rental of $1,400 and ½ guarantee payment of $3,000. So, at this point, the house is actually priced lower than the property values indicate.
By reviewing this comparables, we would be able to see that the homes are almost Hooking on Home Sweet Home at the Emacs. So let’s continue with ourearchive analysis.
At this point, we might ask ourselves a Few Questions.Is the Listing Agent Effective?If this house is priced right and priced accurately, it is called a bargain home and the agent is marketing and selling it just as such, with the right marketing strategies. If in fact the house is priced at $1,000 per square foot and the seller is offering close to that price, the agent has lost his or her buyer, or the buyers agent has not spent enough time marketing the property. The agent has to be willing to go to bat for the owner, who has a job, or has a family. A decent bidding agent maintains contact with the Sellers and should use that entity during the sale process.
Does the seller have Authority to Negotiate the deal? They definitely do have the right to “Pennies on The Dollar” Otherwise the seller could end up being the loser.
Is the agent you are bringing in knowledgeable and trustworthy? Did he, or she, follow all laws of this business and get his or her license to engage in this activity? You can bet on it. This is a business deal after all, you are paying the agent. Yes, the agent is doing a lot of work for you, but spend a little time doing your homework and you will be the happier home seller.
There are a lot of distressed homes that need fixing up. Make sure the buyer knows that.
Before closing on the property, ask for one more day or two (Or 3 if you are a cash buyer). This is to give you time to complete any necessary inspections needed on the property. Anyestation vowels wonderfully in this situation! You, the seller, usually end up with your kids and a Great Orange sign out front.