How to Find Undervalued Property
Purchasing real estate at market value these days is different from purchasing real estate 30 years ago. Today, most real estate investors benefit from real estate by purchasing below market value. The way to purchase undervalued properties is to find distressed owners who are willing sell their property below market value. Under valued properties are the cash cows of the real estate market.
Pre-Foreclosures normally save you money as you do not have to pay many administrative fees as you would a regular home purchase. In addition to this, pre-foreclosed properties are generally less expensive due to the circumstances of the home owner. Since you are not paying for realtor’s fees and since they want fast closing they are ready to give you huge discount on the price and they might have paid a lot less than the current value. Pre-Foreclosures are one of the best ways to get undervalued properties.
Grow up houses are homes that have been involved in an illegal criminal act. They are used to grow an illegal substance called marijuana. Grow up houses that have been discovered and shut down, have the possibility of having damages caused by the chemicals used. Even after being discovered and deemed liveable, a grow up house can still have hazardous chemicals that can a person. A grow up house, seeks attention from fellow neighbours because it affects them as well. Not only does a grow up house decrease the market value of its own property but it also decreases the market value of homes in the surrounding area.
Believe it or not; old, tired and absent landlords do affect the market value of a house. If the landlord is old, tired or absent then the house will not be taken care of properly. Repairs that need to be done will be partially completed or not done at all. Sometimes the repairs will not be done properly, causing more damages to the house. The personality and attitude of the landlord has an effect on the market value as well. If the landlord is aggressive and has strict rules, then several people would not want to live there forcing him to lower the price.
Divorce and disputes also cause people to sell their homes below market value. If a married couple has severe arguments and decide to settle for a divorce, they might decide to sell their home. At this point in time, they do not care for each other or their home causing them to sell it for below market value. When a couple goes through a divorce, it is difficult for them to keep their mind off the main issues. In this case, they neglect work that needs to be done in and out of their home, causing it to look like a mess or run down.
Another reason why there are undervalued properties is because people are in need of money. They are desperate for money because they have diseases and need to pay for medicines or they are addicted to drugs or something similar and they pay to get it. These types of people are looking for quick sale because they need quick money. The only way to do so is to sell their home below market value.
Estate sale is the sale of a property left by a person at his or her death. When someone dies, the rightful owner of the house has to pay taxes on it then certain action is taken depending on the will. The will can be to leave the house to a family member, if not then it is sold and the money is divided to whoever is stated in the will. When the home is sold, it is below market value because they want to get rid of it quick.
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The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case
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