How To Get Real Estate Deals Before They Are Gone with BMV and an Option Contract
The real estate market is growing ever more competitive as private investors are competing against time and each other to snap the best deals. And even if you are not an investor and are simply looking for a good deal on your new home, acting quickly is vital. When an undervalued home comes to the market, it rarely lasts longer than a few days before an offer is placed on the property.
Successful bargain hunters and investors that often close deals on deeply discounted homes know how to spot a great deal. We have created a new website called BelowMarketValue.com (BMV) specifically to help investors and bargain hunters identify great real estate deals as soon as they hit the MLS.
BMV runs an automated comparative market analysis to determine whether or not a property is a deal, within seconds of every property that is listed.
Once you have identified a great deal, one of the key techniques in obtaining the property first is to use an option contract.
You can place an option contract on a property for about $100 bucks. It allows you to take the property off-market for a negotiated period of time, usually around 7 days.
Option Contract Benefits
An option contract allows you to hold the property for a negotiated period of time, known as the Option Period. It gives you time to evaluate and inspect the property and get your financing in place.
When using an option contract, you have no obligation to buy! Your only risk is the non-refundable option contract fee of usually $100. So the benefits of using an option contract far outweigh the risks especially when it comes to determining if a property is the right fit for you.
- Act before anyone else, only risking the option contract fee.
- Get more time to thoroughly vet the property.
- Hold the property so you can arrange financing.
- Secure a good deal before you see the house.
- No obligation to buy, the only expense is about $100 bucks.
The option contract is a pro tool that any property buyer can use in their search for the perfect home. If distance or location hinders you from looking at a property as soon as it hits the market and you’re confident in the online photos and property info, use an option contract to act quickly and still cover all your bases.
It is true, sometimes you find problems with a property that you may not be willing to repair or you determine that the property is simply not what you’re looking for. With an option contract, you can back out for any reason as long as it’s within the Option Period. You lose the non-refundable option contract fee but you have ease of mind knowing with certainty, you made the right decision.
Timing is Everything
Option contracts help you stay ahead of the curve and evaluate potential deals in detail. By combining our below market value insights and instant email alerts with professional agents and option contracts, you save a lot of time and boost your chances of closing on a great deal.
Once you see a potentially good deal, call your agent or find one on BelowMarketValue.com (BMV) and ask your agent to evaluate and preview the property as soon as possible. If they see the property looks pretty good, you can put an option contract on it without seeing it. Then you can further vet and get financing lined up without rushing.
Good Real Estate Deals Don’t Last Long
How many times you have seen a good deal and said to yourself - “I will think about it,” and the next day it was gone. It happens to all of us. It is true not only for houses but for cars, furniture, and as Black Friday can testify, for just about everything else under the sun.
When you come across a great property deal it is imperative you jump on it as quickly as possible. We know, doubt creeps in and you have to weigh out the pros and cons. But if you know what you are looking for, you should move fast.
How you can use BMV to stay ahead of the curve:
- Filter properties by tax value to look for potential equity.
- Use our Equity Filter to pull only listed properties with a certain amount of instant equity.
- Get BMV County Reports with hundreds of undervalued properties in your area of interest.
- Register, create your own criteria, and get instant email alerts when a deal comes on the market.
Also, look for properties that just come on the market. Remember, good real estate deals don’t last more than a few days, a week tops. Create and save your requirements on BMV and get an instant email as soon as a property with your criteria comes on the market. That is the BMV advantage. Stay informed and ahead of everyone else.
When a deal comes about you have to be ready. You need to have all your financial documents and realtor standing by so you can move fast and put an offer quickly. That is where the option contract comes in, it gives you those vital few days to do your due diligence.
Regardless, if you are an investor that buys several properties per year or you are looking for a new home, getting a great deal on a house can seriously boost your balance sheet. The key to finding and securing property deals below market value is to be vigilant, get alerts, and act quickly when the perfect deal comes around. So find a good agent, respond fast, and employ option contracts so you know you will have time to investigate while your dream deal is secured. Happy buying.