“I want to buy something in Big Bear at 50% of the market value.”
Yeah, you and everyone else. There are plenty of buyers out there, even in today’s market, that would love to do that.
I hear this a lot from buyers but it is an unrealistic expectation in today’s information age. The only way you are going to “steal” a property in this market is if few agents or buyers actually know about it. Most properties that are sold today are through real estate agents and the MLS. And the one thing you can expect is that the property is going to be exposed – multiple MLS’ and 30+ websites – so buyers/agents are going to know about it literally within minutes of it going up for sale.
If a property comes on the market anywhere near 50% below market, how many buyers do think are going to be interested in it?
Enough to make sure it sells near the true market value. The exposure avenues today won’t allow a property to sell that low.
Where can you find properties below market value?
Trustee Sales – by their very nature, they are somewhat secretive and have limited demand from buyers as there are several obstacles to buying one.
1. All cash purchase.
2. “As is” with really no way to do a formal inspection on the property.
3. No title insurance.
4. Hard to find information on them.
5. Lots of time spent researching.
If you don’t have all cash or the time and resources to research these properties, they really are not an option. And these properties are starting to get more competition as investors in Big Bear are looking to make a buck by flipping them.
The market doesn’t lie to sellers either. If your property has been on the market for while and is being exposed yet no one is buying it, you have to listen to what the market is indirectly telling you – “we don’t agree with your price” is my guess.