“The housing market has bottomed. It’s not too late to get involved. I still think buying a home is the best investment any individual can make. Affordability is still at an all-time high.”—John Paulson (Billionaire who made his fortune by predicting the real estate meltdown in 2007.)
If you are looking to pick up an investment property or looking to get a great deal on a new home, these are proven tips to win. The most important concept to remember is that there is a lot of competition for good deals and proper preparation is essential. Skipping any of these steps will decrease your chances of getting the best possible deal.
You must be ready, willing and able to buy.
1. Ready means that you have cash in hand or you have been through underwriting at a reputable financial institution. You must have either written proof of funds if you intend to pay cash or a written preapproval letter from your lender.
2. Willing means you are committed to finding a property and purchasing it. You are willing to spend time touring properties to educate yourself on the market. You are willing to sign a buyer-broker agreement with an agent who will work on your behalf (more on this later). Today’s market is not the market of three years ago. See quote from John Paulson above. We already hit bottom. There are more buyers than sellers of good deals.
3. Able means that you have the finances, commitment and desire to buy a property. You are not afraid to write an offer sight unseen because you have developed a trusting relationship with your buyer’s agent.
Here is an example of how being ready, willing and able works in the real world. I receive at least one call/week from someone who says that they are in no hurry, but if I find a great deal on a property, I should call them. Imagine you are me. I see a listing that I know is a great deal. Am I going to call the person from the internet or the buyer who I know is ready, willing and able? In today’s market, some of the best deals do not even make it to the Multiple Listing Service. Agents find out about them through other agents. If you want to find the best property for the best price, you can begin your search on the internet, but then find an agent you trust and make sure you are ready, willing and able to buy.