For years following the Great Recession, there were jaw-dropping real estate deals to be found everywhere. Along with the foreclosures that seemed to be on every street, there were also houses for sale that weren’t bank-owned but were simply a great deal.
The aftermath of the Great Recession led to amazing opportunities for real estate investors, whether they were new to the industry or experienced.
That has changed quite a bit over the past few years, however. The economy has rebounded, and so have home prices.
Rather than being an extreme buyer’s market, most analysts and professionals would agree we’re in a seller’s market, particularly in hot areas of the country. That begs the question, how can real estate investors find good deals, even when in the midst of a seller’s market with home prices up significantly?
Pay in Cash
Unless you’re shopping in a super luxury market or at a high price point, as an investor you potentially have an advantage over other buyers, regardless of the state of the market, and that’s the possibility to buy in cash.
No matter how strong the real estate market might be, if you can offer sellers cash, you’re likely to come out on top, so don’t forget this bargaining point as you’re looking for deals.
It can be tough to find a deal once a house hits the market with so much competition, from other investors as well as buyers who want to move there.
You may find that during a seller’s market you can keep your business running by advertising that you buy houses. When the market is down, you can find so many fantastic deals that this isn’t really necessary, but if the market is hot, you’ll need to start doing some creative marketing.
You may find that you’re able to tap into people who weren’t even planning to sell their home, but it may need so many repairs that they’re willing to sell to an investor rather than doing the work.
Direct marketing isn’t uncommon among investors, particularly smart ones who are proactive and serious about finding the best deals.
Get to Know Estate Lawyers
Whether you’re currently a real estate investor or you’re considering it, estate lawyers can be one of your best assets.
Get to know one or more estate lawyers in your area, because they can provide some of the best networking opportunities to find good deals. Most people with homes that are part of estates need or want to sell quickly, and estate lawyers can clue you in and put you in contact with administrators willing to sell fast and at a good price.
Talk To Builders
As a final note, as you’ve probably gathered, sourcing off-market properties is one of the best ways to protect yourself in a seller’s market if you’re an investor. Along with estate lawyers and direct marketing, you might also want to get to know builders around town.
Builders typically know about properties where the builder or investor didn’t have the money to finish the project, which can be a valuable opportunity to turn a profit.
A seller’s market doesn’t necessarily mean your dreams of good deals are dashed, but it does mean you need to be smart and savvy with your marketing and networking.