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Where to find a bargain

Started by Badger, September 02, 2007, 12:30:38 PM

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Badger

Where do people look to find a bargain, do they look or does it just pop out of the blue,  the houses i have brought where deals that i did outside of any agent etc, so for me i didnt really look very hard they where just there at a time when i wanted to buy.
I am sure difo peeps have there own ways to find that dream development, just woundered if anyone would like to share them with us or do they know anyone who has had a touch in the past.  Is it who you know, what you know or both coupled together that find these places.
Lets face it we all know someone who always finds a touch !!!!


Badger

propertyfag

I wish I knew where to find bargains. HELP ME, Badgey!!

I know a lot of people that get great deals because they have friends that are estate agents. Estate agents get the best deals because they get to see the property before anyone else.

vwilson

My guess is building relationships with Estate Agents, knowing an area well, seeing it on a regular basis (go for a drive, have a look around, spot new for sale boards), and possibly approaching people directly too; you see a place that looks unloved, find out who owns it, stick a flyer through the door.

Am not exactly an expert but in my limited experience you can drop some right clangers by not knowing an area, so you need to spend a bit of time getting to know your chosen location. My flat is surrounded by a large estate, most of which is in walking distance to a large car manufacturing plant, but with manufacturing having gone downhill in this country over the past ten years I doubt it would've been a very sound investment. Where do your tenants work, how are they going to get there, have those factors changed recently? Desperate people might be grateful for the opportunity to shift their house if they need to move for work.

Apparently looking at where big investment is being planned is also a good trick, but I'm not sure yet how that works exactly (friends at the council offices, anyone?) ... you could just look at where the big house builders are buying up land and look at existing stock nearby. Sometimes people will flog their houses cheap if there will be builders next door for the next 3 years.

propertyfag

Yeah, good point, Vicky.

If there's a lot of planned development in a certain area, you can assume that once the work is complete, the house prices will increase dramatically.

vwilson

This has got me thinking now ...

There's also spotting properties that have been on the market for ages (did I say that before) or ones that have just been reduced in price (the smell of desperation).

Check local school league tables and catchment areas, an improving school may lead to improving house prices.

Also (and I've not done this myself but an ex bf reckoned this was how he got ahead with property) watch the areas around very popular, solid postcodes closely. In a strong market (like our current phase, well ... perhaps a few months ago) these areas will be at their peak because everyone who can't quite afford to get in the top area will be prepared to part with top dollar to get as near as they can to it. However, in a slump, these areas will drop disproportionately because they are just not as valuable as their solid, safe neighbour. That's the theory. Like I say, its not something I've done myself and I'll be watching to see if its born out in prices in some of the areas around here, but if that is how it works it could be a useful tactic.

V

propertyfag

Yeah, it's always good to look out for desperate sellers. The only problem there is that you need to find an honest estate agent to assist you.

Estate agents want to sell the properties for the highest price, as it reflects on their commission. I doubt many estate agents will say, "yeah, the seller is desperate, you can knock him/her down 10k"

Again, it helps to know estate agents!

If you want to sniff out a desperate seller indepedently, you need to keep a close eye on the market constantly. It can end up being a full-time job.

Looking at areas that surround well developed areas is always a good method. For example, I was looking in Dulwich because it's close to Clapham. Clapham has taken off in a big way- full of nice bars and restaurants, and has a lot of young professionals taking residency there.

vwilson

Quote from: propertyfag on September 03, 2007, 10:20:05 AM
Estate agents want to sell the properties for the highest price, as it reflects on their commission. I doubt many estate agents will say, "yeah, the seller is desperate, you can knock him/her down 10k"

I'm not sure, the estate agents selling my late grandmother's property on behalf of my cousins and I don't seem to be taking the asking price very seriously at all! In some market conditions, estate agents would rather sell something than nothing at any price.

In fact, the number of for-sale boards I saw this morning on my way to the local post office was quite disturbing. Houses just aren't selling right now. Flats in this block aren't shifting for months, when they used to go in weeks.

Time to invest in an index tracker?


V