According to Rightmove, the demand from potential buyers has also increased by a quarter. However, the market is cooling down from the frenzy of last year, with 7% declines. Tim Bannister is Rightmove’s Director of Property Science. He said that with such an imbalance between supply and the demand for housing, the prices are underpinned. We would expect smaller monthly price drops than the more dramatic ones in the second half.
This has caused us to revise our price growth forecast for the end year, from 5% to 7%. However, this still represents a slower rate than the 9.3% seen in this month. This can lead to dramatic errors in numbers when you are considering wholesaling property for beginners. Wholesalers who do not have a complete understanding of the cost to the buyer, including repair costs, can drastically michael akkawi underestimate it.
Wholesalers can estimate the price of a deal based on comparable home prices in the region. Wholesalers can stay ahead of their competition by assessing the property’s needs for renovation. Understanding rehab costs will help you avoid costly mistakes, as well as ensure that deals are completed to the benefit of sellers, wholesalers and buyers.
Wholesalers who are successful know to buy low, and then assign the contract for the property at a price high enough that they make a profit but not so high as the buyer is unable to negotiate. Investors won’t work with you if they don’t think there’s room for problems. The reason wholesalers are interested in distressed properties is that they often sell for less than market value because the homeowners want to move quickly.
Consider real estate networks, FSBOs, HomesByOwner.coms, social media or hiring a personal assistant as a bird dog to save time, money and sleepless nights. You can find potential properties by searching probate court records and public tax records. Real estate agents who are experts in investing properties may also be able to help you discover the hidden beauty of a distressed home.
You can use a bit of brainstorming to find properties that are in distress and contact the owner to explain how you might be able help them through a cash deal. Respecting and treating the owner of the property with dignity will go a long ways in building trust. Many distressed properties belong to people who are in financial trouble.
You are not the traditional agent for real estate, so it is important to show professionalism, kindness, and respect to every new client. Once you have connected with your market through a mix of cold calls, direct mails, emails, door-knocking and social media and shared accurate contact details, the next step would be to convince distressed sellers to accept your offer.
When you are meeting with the owner of the property, emphasize the advantages to working with you. You know the best way to help them by understanding their pain points. You should assure the seller, that you will not take advantage of the unfortunate situation. You can share who you are with people you have added to your network. They are not your family or friends, and they are unlikely to be first-time buyers.