Find Property Below Market Value

Most of the people will say that in property investment the most important thing is location, and then the second important is location and the third is also location. Other that location, some people may say that the other important things that we need to consider when we want to invest in property is right price, right timing, and demand of the property itself. Those are some of the very common considerations when people investing in property. However, there is one more thing that is very very important in getting the best deal in property investment, especially if we want to buy property with no money down or little money, and that is “motivated sellers”. Yes, that one of the most important key in buying property with no money down or little money.

We can understand why location is important. And even in some Asian countries or eastern countries, location is one of important factor especially in country where most of the people believe in superstitious thing, feng shui, or something like that. Just for example, for some of people, they try to avoid to buy property located near the cemetery, because they it may bring a bad luck. In more general situation, location will impact of the price of the property. For example, property that close to the infrastructure such as transportation, market, mall, sports centre, will tend to have price higher than those far from those amenities.

Other people say, even though location may not be the best and price also not the cheapest, but as long as the demand is still high, property price will still go up, because demand and supply play the important role here. One of the good examples is the property in the growing area or island where the demand is high because population is high while the supply is limited. In this situation, property will still have a very good possibility to increase in price in general as compared to those island or city where demand has been stagnant.

All those factors above may be significant, where demand is good while supply is limited. In the market cycle where property market is on the downturn, those factors may not be significant anymore, because demand is not there. But there is still one more consideration that is very important to think regardless of those situations. That consideration is motivated sellers. Motivated sellers is basically sellers who are really wants to sell their property, or desperately want to sell their property because of the certain situation or condition such as bankruptcy, debt, moving city, etc. In this kind situation what seller wants is just to get out of the problem they have. In this situation win win solution would likely happen as usually seller need fast cash. At the same time, buyer has an opportunity to bargain the property to get a very good price as an exchange to the fast cash. The result would be end in having transaction of the property below market value (MV).