Finding Bargains in an Over Heated Market Part Three

One of my main points in the first two parts of this series that in order to find your best deal in an over heated market you have to do more of the legwork yourself. You cannot rely on an agent to represent you. Most agents want to do the least work for the most gain. The great agents will be patient with you if they know you are bargain hunting. One thing about bargain hunting. It requires you to be dispassionate about the home buying process. You cannot get caught up emotionally in the process of looking for a home. In over heated markets there is a tendency to get caught up in the process and make rash decisions. How to do this?

1. Determine the monthly payment that feels comfortable to you. You do this by paying your new mortgage(if for example your mortgage payment is going to rise, simply pay the difference into a checking or savings account.)

2. Once you have determined your comfort zone payment stick to it. Resist the urge to increase it by thinking, "The market will certainly go up. Let's spend more."

3. Be patient. Look for the right opportunity. In an over heated market, you will be tempted to rush pell mell into the first property you qualify for. Make sure the property matches all of your criteria for a residence or investment.

4. Be ready. Get a mortgage pre-approval letter that is solid. In a previous post I covered how over 50% of home purchasers have poor pre approval letters. Having a solid pre-approval means that you are ready to buy.

Well this article is supposed to cover yet another source for finding homes. And as always is the case when buying in a over heated market you will find that you the buyer are gonna do the legwork. Especially with this next resource I am certain that no agent is going to show you these homes. The real estate industry takes care of its own so when home owners list their own homes with For Sale By Owner, they get ignored by agents. For Sale by Owner is a great way to find bargains as agents never show these homes. Why? Largely loyalty to the real estate industry as opposed to the home owner. Without the 6% commission for agents, owners have more negotiating room.Buy and sell real estate without paying a broker! Furthermore as you are negotiating directly with the home owner, you both have no interest in proping up a hot market. The seller wants the best price for his home with the minimum of work. If you followed the four steps I outlined above you should be ready to make the purchase.

Related Links:
Finding Bargains in a Heated Market Part One
Finding Bargains in a Heated Market Part Two
Find ing Bargains in a Heated Market Part Three


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