June 25th, 2015 6:10 PM by Gregg Mower
It is that time of the year where the kids are out of school for summer vacation and Parents have the get-out-of-town blues. This time of the year we have traditionally seen Real Estate Sales slow and this year is no exception. If you are trying to sell a home and your home is currently on the market don’t get discouraged this is a typical market. If you are trying to sell a commercial property this time of year is even worse. The simple facts are that those that have money to buy Real Estate traditionally take their vacations when the weather is good and the kids are out of school. The sellers I work with I have had to tell them that this is typical and although they don’t want to believe it, the facts are there.
If you are in the market to purchase Real Estate, this time of year is great as you can usually catch a desperate seller and get a better than normal deal. Your Agent (if you can find them not on vacation themselves) should know this if they are working for you as a buyer’s Agent. A savvy Real Estate buyer, either Residential or Commercial, will look for good deals this time of year and smart ones will work their Agent to do so.
So how do you know how to find the deals, and which sellers that are ripe for dealing? This is where a great Agent that has been in the business for many years can spot sellers desperate to make a deal. Some of the tricks we use to identify those desperate sellers are closely held secrets but others I fully intend to share as you can do the research yourself or with the help of your MAE Capital Real Estate and Loan Agent. The first, and most obvious trick, is to look at how many days, the property, you are interested in, has been on the market. You see, the longer the property has been on the market the more apt the seller is to make a deal to sell the property to you at a reduced price. You will find the days on the market, or DOM, on the MLS listings sent to you by your Agent. Generally, the online property searches do not have that information, so you should be working with an MAE Capital Real Estate and Loan Agent sending you property to view on their drip system. If you want a great deal I always recommend that you work with a qualified Agent simply because you don’t pay for their services the seller does.
Another trick we use to determine if a seller is desperate to sell is to pull a property profile that shows all the information on the loans and deeds on the property. Sometimes, you get lucky and see that they seller has a type of financing that is coming due. This means that they may have taken a short term loan out, generally in hopes they could fix and flip the property quickly. If the property sits too long they may get stuck with late fees and additional interest charges so it is in their best interest to sell quickly. We can also see if there are any notices of defaults on properties in the area you are looking in. This would indicate that the seller needs to sell before a lender forecloses. These tricks you can do as a buyer if you know how to find the information, but if you are working with an Agent (preferably a MAE Capital Real Estate and Loan Agent) we can do the research for you.
You can also look for properties that have been recently reduced in price, this will generally show that a seller is desperate to sell as well. The theory is that if the seller is willing to lower the price they may have to sell quickly and may take an even lower price. To take advantage of this, you have to be watching the market every day and be the first to strike. Again this should be your Agent’s job as you have life to live yourself.
These are just some of the tricks we use in the business to get our buyer’s the best deals possible. As you can see we are watching the market, the time of the year, and seller’s actions. This is what a highly trained Agent will do for you. We at MAE Capital Real Estate and Loan have several other tools up our sleeves, as you can well imagine, that can help you get the best deals possible. I know some of you out there are reading this to get educated so you can just call the listing Agent and try to get the best deal for yourselves. Problem with that is, when you deal directly with the Listing Agent their primary fiduciary responsibility is to get the Seller the best deal possible not you. Remember you do not pay for the Agent that represents you the Seller pays your Agent. If you think the commission and costs will be less dealing directly with the listing Agent you are wrong there again, the commission has been set when that Listing Agent takes the listing before you even knew the property was for sale. So I hope this is a lesson for those that think they can find and negotiate a Real Estate deal themselves and get a good deal. There is a little saying for those that represent themselves and that is “that if you represent yourself you have a fool for a client”. True for representing yourself in the legal system as well as Real Estate. We are here to help and we charge nothing upfront, all of our consultations are free. So if you want to find the best deal this time of year call us (916) 672-6130 or complete one of our easy contact forms and we will be calling you get you started.