Posted on: 14 February 2017
Are you hunting for a bargain property for your next house? You need to know what to look for if you are to succeed; otherwise, you won't know it when you see that undervalued property. Here are some of the signs that mean you are looking at an undervalued property:
The Property Isn't Exactly a Looker
Appearance sells; this is why people improve curb appeal and stage their homes when selling properties. On the flip side, a house that doesn't look that appealing to the eye may fetch lower prices than comparable houses on the same street that look great. Just make sure that the property only looks rundown but is actually structurally sound. Maybe the lawn isn't that neatly cared for, the paint needs retouching, and the roof could do with a thorough washing. You may land a goldmine if the home inspection (a necessary part of the home-buying process) doesn't reveal any serious problems with the property. Also, don't forget to factor in the costs of the touch-up before buying such a property.
The Seller Is Extremely Motivated
A motivated seller has a compelling reason to sell their property as soon as possible. For example, a seller is motivated if they have accepted a job offer in a different state and need to sell their current home quickly. A seller may also be motivated if their house has been on the market for long, they fear an imminent foreclosure, or they have just filed for divorce.
A word of caution here: most sellers know that buyers are excited by motivated sellers, so they just throw the word around their listings. If you really want to know if a seller is motivated, find out their reasons for selling the house.
The Property Is Being Sold in a New Development After Completion
Most properties in new developments are sold off-plan. Prices during this time are likely o be high because buyers will be rushing in to make their stakes; this is especially true if the property is located in a prime area. However, prices may drop when the development is complete and a few homes remain unsold. If the developers have made their profit, they may dispose of the remaining stragglers at relatively lower prices. You may also be lucky to land a house whose owner has changed their mind and wishes to dispose of the property. Just remember that you may not get to choose the exact location of your home within the development if you are buying after completion.Share