If you are considering buying a property in Phoenix but you have a tight budget, you will want to take advantage of these few tips when you are looking for properties. Nothing can replace the benefit of using a seasoned real estate professional but these tips can help you and your realtor to locate a great deal that will be your first step in the process of investing in real estate.
First, explore your options for financing so that you know how much you really have in your budget and not just an arbitrary estimate. Being preapproved for a mortgage makes you a much stronger buyer and can play in your favor if there are multiple offers on a single property. Also explore creative options to increase your budget such as a first time homebuyer program or low down payment options. With a firm number that is your maximum pre approved amount, you will know exactly what you have to work with when making an offer.
When you have found a neighborhood that you like, take the time to drive around and look at vacant homes. That is a good sign that the seller is motivated to sell. They might have already relocated or purchased another home but no one wants to carry two mortgages for very long. Your reasonable offer could be very quickly accepted. And especially in the case of a vacant home, don’t be afraid of a few cosmetic issues. These items could be very easy to notice in an empty home and give you a little bit more leverage to get the seller to accept a lower offer. Compile a list of the fixes that you feel are necessary before move in and put a dollar value to the list. Even if the seller only meets you halfway, you have gotten the price lowered and can add some sweat equity to the home immediately.
If you have a particular area or zip code in mind but can’t afford a turnkey home, then consider a fixer upper. There is a lot to be said for buying the worst house in the best neighborhood. You can complete smaller projects yourself and contract out for the larger ones and end up with a house that is worth substantially more than you paid for it. And the best part is that it is located in your dream neighborhood. Also don’t overlook the opportunity to purchase a lot in your desired area that has a modular home or even a mobile home on it. If the house is livable for the short term, you can live there and save to build your dream house or expand the original small home that is often found on a rural lot.
Buying real estate in Phoenix without breaking your budget is possible if you have realistic expectations and a great team of real estate professionals helping you with your search. Visit www.azrealestatewholesale.com to learn more about what these pros can offer you.