Buying Quality Properties at a Discount

Buying Quality Properties at a Discount

As a buyer, its important to recognize the difference between getting a great price and BUYING QUALITY PROPERTIES AT A DISCOUNT. Price is only part of the evaluation of a property. You do not have to look further than some of the Bank Owned Foreclosures and Short-sales in our market to see the difference. There is a trap that many buyers fall into at some point, and that is leaning toward the best price vs the best value. 

Imagine that you are buying an investment property that you plan on holding for a minimum 5 years. There are two properties that are essentially the same for you to choose from. Same size, same number of bedrooms, etc.  One is priced $15,000 below the other unit.  Which one do you purchase? If you say the lower priced one you are not alone. Many inexperienced buyers and investors would say the same and possibly make a mistake. They are choosing price over the other factors that affect value. here is why you want to Buy Quality Properties At A Discount:

  1. Correctly priced.  They are priced correctly. Since they are quality homes, they typically don't need to be priced below similar sales because they can compete as-is. Quality Properties will be on the market for shorter time and sell closer to their asking price. 

  2. Good Condition. They are typically in Good Condition. Less out of pocket cost up front means more capital and higher profit early in the investment - which adds to better overall performance. This allows for a quicker turn time because you don't have to recoup the extra cash. 

  3. Rent Sooner. They will rent sooner and you will have fewer vacancies. If you are buying to live there, the home has likely been cared for on the outside and on things you don't see inside within the 4 walls. 

  4. First to Sell. Quality properties are the first to sell. In a market with a lot of inventory they are also the first part of the market to being to appreciate. 

  5. Higher Upside. Quality properties have a higher upside. In a market that is appreciating value of EVERYTHING is rising. Values rise, because of lack of inventory. When there is little inventory and the B and C grade properties are appreciating, people will pay a REAL PREMIUM for the Quality Properties so they don't have to spend more money on improvements. 

You can see how Value is more than just a price. A savvy buyer is looking for total value and do this through Buying Quality Properties at a Discount!   Please feel free to reach out to our team to discuss our specific methods of finding our clients the best value in properties available.