Five Ways to Get a Great Deal on a Home in the Ann Arbor Area
“The house you looked at today and wanted to think about until tomorrow may be the same house someone looked at yesterday and will buy today.”
Why is it Difficult to get a Great Deal on a Home in the Ann Arbor Area?
Before we discuss how to get a great deal, let’s look at the factors making it difficult to get a great deal on a home in the Ann Arbor area.
• At times, the market is a seller’s market with low inventory and high demand.
• Further, when the market is a seller’s market, low inventory creates competition between buyers and increases the potential for multiple offers bidding up the price of the property.
• Inflation puts upward pressure on prices.
• Interest rates can make it less affordable to buy higher priced homes because it makes the payment larger.
• Property taxes are definitely a factor in home affordability.
• Wages for many workers have not kept up with the increase in housing costs for many workers.
• More cash buyers in the market present more attractive offers and competition because cash buyers can close faster with fewer contingencies.
These are some of the issues making it difficult to get a great deal. Let’s look at what we can control to actually get a deal.
What can we Control to Actually get a Great Deal on a Home in the Ann Arbor Area?
To be honest, there are many factors we cannot control in the housing market. But, there is one factor, just one, we can control easily that leads to getting a great deal.
The one factor we can control is the house we put an offer on.
We cannot control the housing inventory, inflation, interest rates, property taxes and many times we cannot control wage growth or having stacks of cash.
No, the one factor that most people can control easily is the house you try to buy.
So, if the focus is the house we try to buy, how can we get a great deal on that house when all the other factors are difficult to control?
How Can a Real Estate Professional Help You Buy Listed Properties Well in Any Market?
The goal of all five ways of getting a great deal is to reduce the competition for the house you are interested in with other buyers. You want to be the only buyer the seller is talking to.
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If a property owner is out of town, their motivation to sell may be greater and many times it is.
How do you find out of town property owners? The tax record or the title company are both great places to look.
You can look up where the tax bill goes on an individual property on the website for the tax assessor for the city or county. If it is an out of town address where the tax bill goes, simply send them a letter explaining you are an interested buyer and ask if they thought about selling.
A title company can help generate a list, for a small fee, of out of town owners in a certain area you are interested in living to increase your chances of getting a good deal.
Send all of these home owners a letter or postcard and plan to do the mailing more than once to get in front of these owners over time to generate a response.
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In order to get a great deal, you have to tell everyone what you are looking for so they can help you.
Friends, family, coworkers and social media are the usual suspects here.
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That’s right. Garage sales. People hold garage sales before they move and this can be a great way to strike up a conversation with a potential seller before the house goes on the market and competition for that home increases.
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Many times, before a house goes on the market, the seller will have contractors like painters in their house to get the house ready to sell.
These can be great sources to find potential sellers before the house goes on the market.
Think painters, landscapers, handymen, etc that you can contact and explain what you are looking for and that you will likely need their services after you buy the house.
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The few remaining lots in a development can sell for less if the developer is trying to finish the project to move on to the next project.
Look for mostly developed new construction neighborhoods and see if there is flexibility in pricing on the last remaining lots.
Perhaps go in with other home buyer friends and buy the remaining lots and close out the project for the developer giving you greater negotiating leverage.
Look for mostly developed new construction neighborhoods and see if there is flexibility in pricing on the last remaining lots.
Perhaps go in with other home buyer friends and buy the remaining lots and close out the project for the developer giving you greater negotiating leverage.
How Can a Real Estate Professional Help You Get a Great Deal on a Home in the Ann Arbor Area?
The good news is most sellers are willing to work with a buyer’s agent if they can save money on the listing agent’s commission.
A good buyer’s agent will know all the ways to locate off market properties and market to them for you so you are the only buyer the seller is talking to.
A real estate professional will have relationships with title companies and contractors and be able to help you get in front of potential sellers and structure the offer so it will have the highest chance of being accepted and close.
Let your real estate professional know what areas you are interested in living and let them farm the areas for you looking for an off market properties that you can get a great deal on.
How To Get a Great Deal on a Home in the Ann Arbor Area
There are many factors that are out of the buyer’s control like the state of the housing market, listing inventory, inflation, interest rates and taxes.
There is one area the buyer has control with little difficulty and that is the house you put an offer on.
The objective in getting a great deal on a house in the Ann Arbor area is to be the only buyer the seller is talking to and ideally with signs of potential motivation like being an out of town owner.
Your real estate professional can be your best resource to locate and structure offers that will be acceptable to sellers from their experience, contacts and market knowledge.
Arbor Advising has a passion for helping people buy, sell and invest in real estate. We believe real estate is the best way to create passive income, grow your wealth and provide inflation adjusted returns in retirement with fantastic tax benefits.
Want to learn more? Contact us.
Disclaimer:
Always speak to your CPA, investment advisor and attorney before making any investment decisions. Past performance does not guarantee future returns. Arbor Advising seeks to educate and does not endorse any specific product, service or investment.
