In the quest to find a heavily-discounted home for sale, many buyers today are looking almost exclusively for short sales or bank-owned properties. But since, in most cases, the banks in question have already agreed to take a loss, it is likely there won't be room for much more negotiation at the table.
Savvy buyers may be wise to look for owner-owned properties for a better bargain in the long run. Here are several common characteristics of highly-discounted homes:
- Look for listings that have languished on the market for 90 days or more. Many owners will hesitate to accept a low offer if the home has been listed for only a few days or weeks... but three months later they are usually much more open to negotiate.
- Find fixer-uppers. Heavily-discounted homes are 73% more likely to need some fixing up. Owners of homes that need some work are often looking for a quick sale and are more likely to make price concessions (But get the home inspected before you buy).
- Stay away from remodels. Sellers who have sunk big money into recently remodeled properties are 20% less likely to negotiate.
- Hunt for homes with long-term owners. Heavily discounted homes are 52% more likely to have been seller owned for 20 years or more. The longer an owner has owned a property, the more equity he has accumulated and the more apt he is to make price concessions.
- Find the flippers. On the other hand, an owner or investor who is in trouble may be motivated by the need to reclaim capital instead of waiting for equity growth.
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