Buying discounted properties is the goal of many real estate investors and local homebuyers. These kinds of properties can be difficult to find unless you know where to look. In our latest post, we will help you learn more about buying discounted properties in Philadelphia!
There are many ways to find great real estate deals, you just have to know who to ask and where to look. Keep in mind that not all companies are the same, and you should do your own research on a property before buying. The first thing you learn in real state school is “caveat emptor,” which means “let the buyer beware.”
Property wholesalers work with buyers who need to sell quickly. It is the wholesales job to quickly find a buyer and assign the contract. While the wholesaler doesn’t receive a commission as an agent would, they do receive a fee when the property closes. It is a wholesalers job to do the work to find deeply discounted Philadelphia properties. They are looking for good deals just like you. You can take advantage of their research on the property and ability to buy at a low price. Their goal is to resell the house, so even after their fee, you will still be able to buy at a discount.
Professional Real Estate Investment Companies
When you work with a company such as Philly Off-Market Deals, you will be able to find great deals on Philadelphia houses. It is our job to find the best deals possible, and those saving are directly reflected in the prices we sell homes for. Not all investment companies are the same. We take pride in fixing up homes and reselling them at great prices. When you work with a professional investment company to buy a home, you will likely have access to a tremendous amount of data and reports for the given property.
Foreclosures are often looked at as a way to buy real estate at discount prices. While you can find a good deal, it’s not always what people think it’s going to be. Before you make a bid at a foreclosure auction, know what you are getting into. Do your homework on the property and talk to a contractor to estimate repair costs. The property is likely being sold as-is, many times with damages and missing appliances.
Tax Lien Certificates
Purchasing tax lien certificates isn’t right for everyone. You need to do a good amount of research about the property and the homeowner before making a bid. If you are the winning bidder, the homeowner will then owe you the amount of the back taxes, plus interest. If they are not able to pay, you have the right to foreclose on the property. After paying a lawyer to help you through the process, and you consider the time spent, you might find it to be a bit cumbersome. That said, some people spend a lot of time researching tax-lien auctions in the Philadelphia area, and have been able to make a good amount of money. Be patient.
When you work with someone who is selling on their own, they are likely doing so as to avoid commission costs. Commission costs can be high, typically landing at around 6% of the final sale. Knowing this, you can negotiate with the seller, offering a fair price that lets you both keep more cash in your pocket. Keep in mind, that if they are trying to sell on their own, they might have tried to make all the repairs on their own.
Talk to everyone you can and let them know of your intentions. Get the word out that you are ready to invest in Philadelphia real estate. You never know who is selling! Or who knows someone who is selling. You might be surprised at all of the leads that come your way just by putting yourself out there!
Scout Properties Yourself
Overgrown yard, chipped exterior paint or visible roof damage are all signs of a potentially motivated seller. When someone stops taking care of their house, it is likely they either aren’t able to, or they just don’t care anymore. You can use public information to learn more about the owners, then decide if you want to reach out to them. Let them know of your interest, but don’t be pushy or make them feel as if their privacy has been violated.