Common Characteristics of Heavily Discounted Homes
By Barbara Pronin, RISMedia Columnist
In the quest to find a heavily-discounted home for sale, many buyers today are looking almost exclusively for short sales or bank-owned properties. But since, in most cases, the banks in question have already agreed to take a loss, it is likely there won't be room for much more negotiation at the table.
Savvy buyers may be wise to look for owner-owned properties for a better bargain in the long run, according to Redfin's "Science of Real Estate" website, which has identified several common characteristics of highly-discounted homes:
-Look for listings that have languished on the market for 90 days or more. Many owners will hesitate to accept a low offer if the home has been listed for only a few days or weeks.
-Find fixer-uppers. Heavily-discounted homes are 73% more likely to need some fixing up. Owners of homes that need some work are often more concerned about a quick sale than they are about a speedy sale. (But get the home inspected before you buy).
-Stay away from remodels. Sellers who have sunk big money into recently remodeled properties are 20% less likely to negotiate.
-Hunt for homes with long-term owners. Heavily discounted homes are 52% more likely to have been seller-owned for 20 years or more. The longer an owner has owned a property, the more equity he has accumulated and the more apt he is to make price concessions.
-Find the flippers. On the other hand, an owner or investor who is in trouble may be motivated by the need to reclaim capital instead of waiting for equity growth.
For more information, visit www.redfin.com.