Dian Hymer
Property that’s not selling isn’t necessarily a bargain if no one wants to buy it. A foreclosure that’s selling for less than the defaulting owner paid for it isn’t a bargain unless there is clearly upside potential.
A property in a good location that suffers from deferred maintenance could be a prime property in the future. That is, as long as it doesn’t have incurable defects, like the two-bedroom, one-bath home on a small lot with no expansion potential mentioned above. These starter homes sell well in a hot market. The demand dries up quickly when the market slows because these homes don’t satisfy most buyers’ long-term needs.
Good candidates are properties that are located in areas close to urban centers with good transportation and where the population is growing faster than new homes in the area are being built. These locations could be the next hot spots when the market turns around…
Before you waste time negotiating on a deal that can never come together on terms that you can accept, find out about the seller’s situation.
Sellers who bought within the last few years may not be able to offer their property at a price that makes it a good deal for you. Many who bought in competition paid significantly more than the buyer who made the second to the best offer. In other words, they paid too much.