Real estate can be extremely expensive. However, despite this, real estate investors are able to make a profit off their investments in different properties. This is partly because there are ways to save on real estate. Below are four different ways you can obtain property at a deeply discounted rate.
1. Sort Online Listings by Price
The internet is a powerful tool for finding real estate. Websites like Realtor.com, Zillow.com and Trulia.com can certainly make finding the property you want far easier than if these tools weren’t available. They can also allow you to more easily find the most discounted property available. You can do this by sorting the online listings on these websites by price with a low to high setting.
However, this setting will not be the default on most online listings of real estate. In most cases, the default setting will be to list the most expensive properties near the top. This is one of the ways these websites make money. Just make sure to alter the settings so you can more easily find the cheapest listings.
2. Choose the Right Location
You also need to choose the right location to find the most discounted property. The real estate market is not equal across the entire nation. Instead, it can fluctuate greatly depending on location and geography. For example, property in southern California is likely to be far more expensive than property in southern Florida.
You should also consider the location of property within a city’s limits. Obviously, property that is closer to the busier business district of a city will tend to be much more expensive than property located towards the outskirts. If you don’t mind commuting to work or are building a structure like a factory that doesn’t have to be close to the business district, this can be a very good deal.
3. Consider “Fixer-Uppers”
If you are looking at property with houses or buildings, you shouldn’t necessarily immediately discount fixer-uppers. A fixer-upper in this context refers to a home or building that will require some level of renovation. However, just because this is the case does not mean the property is a bad deal. If the cost of renovation is lower than the discount you are receiving, it can still be a very good deal.
Just make sure you are extra careful when choosing such a property. Some kinds of damage such as water and fire damage cannot be repaired. Make sure to use a home inspector to make that determination.
4. Choose a Foreclosed on Property
In recent years, foreclosures have become a serious problem for homeowners and business owners. While it is unfortunate that some people were forced to leave their homes or businesses, you should certainly consider these properties as part of your search. In most cases, the bank that foreclosed on the property will try to move it off the market as fast as possible to help make up some of the loss from selling it to someone who couldn’t make mortgage payments. You are likely to get a significantly discounted deal.
Roman Temkin is a real estate developer who is an expert at his field.