This is a representation of the number of properties available for sale in any given
market and the price they will sell at compared to market price..
As you can see, the vast majority of properties are listed and will
probably be sold at full market value or close to it.
A tiny number of properties will be sold at a substantial discount.
Your job, as a real estate investor is to find those good deals.
As a rule of thumb, if you want to buy a property and fix it up for
resale at a profit, you need a 30% discount.
To check this out more accurately, download
our Excel ® fix up analysis.
If you intend to keep it and rent it out, you don't need such a large
discount, but your financing terms need to be better. You will not be able
to afford to pay a very high interest rate as it will not be covered by
the rent.
The key as always is finding a motivated seller. An unmotivated seller
is a family who are thinking of retiring to Florida some day, just as soon
as they sell their family home for the price they want. No pressure. No
hurry. You will never be able to get a good deal on this house, so don't
waste your time. But what would happen if suddenly the husband became
incapacitated and could no longer climb stairs or work in the yard. They
might become motivated in a real hurry.
