Most everyone home seeker wants to buy a house in Orange County at below market. Due to strong demand for housing and the limited supply in this area it's not easy to do. Here are some tips and strategies one can use for buying that illusive Orange County California house under market value.
The various scenarios in which you might find a house for sale below market are: Fixer Uppers, neglected rental houses, houses in Probate, houses that have been on the market unsold for a long time, houses in foreclosure and pre-foreclosure, and relocation sellers.
Fixer uppers are a great way to acquire a house at below market. Before you buy, make sure you first do your financial homework. Calculate the cost of the house repairs or renovation, and subtract that figure from the fair market value of the other houses in the neighborhood that are in fixed up condition. Then have your agent make an offer that is 5% to 10% below that calculated price.
Rental houses in which the landlord is from out of town can sometimes be a good way to pick up a house under market. Often times you'll find that out of area landlords wound up with a rental house by default years ago and are not very experienced at property management. After several years of hassles and headaches, and the most recent tenant just moved out of the house behind in payments and the house in disrepair, the landlord may be ready to cut a deal and sell quickly.
Homes for sale that are part of an estate are termed probate property. Many homes in Probate are in need of repair, but you have the extra advantage from the 'pennys from heaven syndrome. There may be multiple heirs who do not get along, and/or they may be from out of the area. Often times, the heirs simply want the house sold quickly, in it's 'As Is' condition, with the minimum amount of hassles and be done with it. Make sure your agent knows the in's and out's of Probate real estate procedures before making an offer to purchase.
In todays marketplace, houses in foreclosure in Orange County do not come up very often, but when they do, they are a great way to buy below market. There are actually three times at which you can buy. One, the house is not technically in foreclosure yet, but the owner is behind on payments and needs to sell now. Two, the owner has procrastinated, and the bank has begun foreclosure proceedings, and the owner is now even more motivated to sell. Third, the foreclosure auction took place, and now the bank owns the Orange County house, in what is commonly called an REO property. In any case, you are dealing with a motivated seller, which is always to your advantage when buying.
Houses for sale in which the owner is relocating to another state, usually produces a motivated seller. They seller doesn't have much time, and they are usually consumed with the details of the new job, learning about new neighborhoods, schools and finding a replacement home, etc. A quick offer, with a short closing period and few contingencies will sometimes enable you to buy the house for below market.
Finally, if the house has been setting on the market for sale in Orange County for 70 days or more with no offers, usually means that the house is a bit overpriced for what it is. In this situation, the seller may become desperate and will jump at the first offer that comes in, even if it is a below market price. |
