It comes down to research.  I cannot tell you how many properties I walk through where the home is being sold half rehabbed.  Meaning, the seller purchased the property with the intent of "flipping" and ran out of money.  The first thing that comes to mind is they never penciled their numbers back.  Just because you buy an ugly house does not mean you are going to make a ton of money by fixing it up.

Typically before I make an offer (on any property), I search the seller looking for distress and call the listing agent to get a read on the situation. I am looking for "Motivation" from the seller. I make a lot of offers on short sales where the lender is forgiving a certain amount of debt against a property because the seller is insolvent and cannot pay closing costs. With these types of deals you have to be patient because the lender can sometimes take up to 30 days for a response. I have had quite a few offers get accepted in the last month where I had my doubts.  I never make an offer based on what the seller is asking.  I determine the value for the buyer and encourage the buyer to make a "less than" offer.  Most sellers have a "low ball" number in their head where they are willing to reduce their price to.  My goal is to find the number and push them a little beyond.  In the last month, I have had offers accepted tens of thousands less than asking.

I have several buyers tell me you can't find deals on the MLS.  That is true if you don't know what you are looking for.

A lot of critics stated this winter would be slow as usual in King County.  In addition, I have heard critics state our market would soon "correct" itself.  King County has been in an upward trend for several years and one of the best markets in the nation driven by a strong economy.  Our upward trend was up to almost 20% appreciation.  This trend has cooled to about a 6% appreciation.  Even though the market has cooled, there is still a lot of activity.

Before becoming a Realtor with Keller Williams, I purchased and sold over 40 properties in King County.  Properties were usually distressed (Foreclosures, Bankruptcies, Sheriff's Sales, etc.).  After I finished rehabbing a home, I wanted to be able to list my own properties, so I got my license.  Most of my clients are people looking for cosmetic fixers, rentals or first time homebuyers looking to earn sweat equity in a home.  I shop for homes in Pierce, King and Snohomish counties.  A lot of clients have never flipped a property, so I go into the property, assist in establishing rehab costs and show them updated homes (comps) in the area so they can visualize the end product (flip).  That way, a profit margin can be established and the client will know whether or not they are getting a deal.  If the numbers don't make sense, I encourage the client not to move forward.  Typically, I look for a property that will produce at least $30,000 net.

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