Today I looked at a house that I should not have looked at. That means that I wasted my time. THat means that I learned valuable lessons about how to pre-screen leads. Yes, I learned how to pre-screen leads, but I didn’t understand the motivation it takes directly from the get-go. As a result, I wasted my time, my wife’s time, and my father’s time. Let me explain.
The ad read: “$77,000 Attention bargain shoppers! Sale flipped! Best buy on the market! Priced $35k below appraisal! Needs a little TLC inside & a whole lot of TLC in the backyard! 1560 sqft. 3 bd, 2 ba, Garage w/shop.” (eastern Washington State)
When I talked to the realtor, she down-played the amount of work necessary to sell this house at “appraised” value.
As a result, this is what I have learned looking at my first home as an “investor (haha)” :
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Ask about the neighbors - especially when the agent has been to the home. This particular home was in a neigborhood of mobile homes. There was also a storage facility nearby and a trucking business also a railroad which was loud
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Tell the agent I’m an investor and I am looking for a home that needs merely cosmetic improvements. If this home needs anything more, I am wasting your (real estate agent’s) time.
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Did I mention storage units? Have you ever seen storage units next to nice homes? I even knew they were there before I drove to the home.
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Research crime rates with local police if any question as to the degraded “value(s)” of the homes in the area.
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Real estate agents will lie about the condition of the home.
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When the property is 0.16 acres that means it’s TOO small (in our area).
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Missing appliances is bad. Missing trim in entire house is bad (a little thing repo’d people like to do to “rip” off the banks).
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If it says “needs a little TLC” that means ignore ad.
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Appraisers CAN be wrong. The home was apprasied at $110K. I would have only paid $50K.
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Can probably trust the assessor for value of neighborhood (in this case it was $78,000 for just about anything - new or old in the area.)
I learned many valuable lessons today. If I am wrong on any of these PLEASE let me know. I would hate to have a false analysis. THank-you.