Finding a good real estate deal can be challenging, but it is not impossible if you know where to look. While a seller’s market might make it seem like good deals are hard to come by, savvy buyers can use a simple online strategy to identify neighborhoods ripe for negotiation. The key is to look for signs of a “buyer’s market” at a micro level.
Spotting Opportunities Online
One of the easiest ways to spot potential deals is by using real estate websites like Realtor.com or Zillow.com. Instead of just searching for listings, you should look for specific indicators of a motivated seller. These indicators are often visible on the map view of a neighborhood showing an area with a high concentration of for-sale listings and a high number of price reductions. Many real estate websites use icons, such as downward-pointing arrows, to indicate a price reduction. A cluster of these arrows suggests that sellers are having a tough time attracting buyers and may be more willing to negotiate.
The Art of the Lowball Offer
Once you have identified a promising neighborhood, the next step is to make a move. This is the time to consider making low offers, even if a property’s asking price seems high. You do not know the seller’s personal situation or their motivation for selling. They may be in a hurry to move for a new job, facing financial stress, or simply tired of their property sitting on the market. By submitting a few low offers, you increase your chances of finding a desperate seller who will accept a deal well below the asking price.
The “Drowning Seller” Strategy
The strategy of making low offers is sometimes referred to as throwing a “drowning seller an anchor.” This metaphor highlights the reality that some sellers may feel overwhelmed by a slow market and be willing to accept any reasonable offer to close the sale. While it may seem aggressive, this approach is simply a negotiation tactic. The more you cast your net with low offers in a buyer’s market, the higher your likelihood of catching a great deal.