How To Buy Houses Under Their True Value

Lets get one thing clear & out in the open immediately, in order for you to buy houses below their real open market value someone has to have a very good reason to sell it to you at a loss to them.

I call it trading on adversity, someone must have a situation or problem they cannot solve on their own and they must have confidence in you that you can provide at least part of the answer before they will deal with you on the terms you need.

Some of the reasons are:

Financial hardship
Domestic break-up
Urgent Relocation
Retirement
Bereavement

There are long established trade secrets, tactics, methods and personal qualities which you must have, guidelines you need to become laser guided towards finding cheap undervalued houses.

The easiest and quickest profit you are ever going to make in buying and selling houses is when you buy them, it is the time the seller is the most motivated and eager to complete the transaction.

But beware, if you can smell a quick profit it will be a time where you can also become too enthusiastic for the deal. You might overlook something or be tempted to improve your offer if the deal is looking like it might not happen.

The answer is to have as many target houses as possible at the same time that you are negotiating for, you do this by saturating your target area with the knowledge that you are in the market.

You must also have strict guidelines for the minimum and maximum figures you will consider and stick to them. You must write your financial rules down and compare every house you look at according to the ratios you have calculated to give you the profit you feel is worth pursuing.

Remember it is no good at all to be completing lots of deals but making little or no money. Even though you will feel like you are missing deals because they do not fit your criteria you will make more money with less effort by finding as many potential deals as possible but only doing the deals which match your written rules and which provide you with enough profit.

Although you will be trading on someones adversity this does not mean they need to feel bad about the deal.

You should always try to find ways to make the seller feel good about finding a solution to their problem. Try to find a deal whereby each party has some goodwill to the other and both feel that they have received the best value under the circumstances.