Distressed Property

How do you know from a listing that property is distressed and how to know assess the bargains?

Cheers

 

It has been run down, no maintenance and too many people live there that do zip ?

 

I mean distressed sale from divorce,death of owner etc

 

If the agent tells you or advertises it this way.

Or if the agent discloses things they should not be discussing about the vendor.

I think most of these things often are headaches and no bargains to be had like this. Familys can fight with death, divorce is usually already an inability for 2 too agree...etc

 

I see on some online research tools such as RIPE which shows the probability that property is distressed by the number of times listing prices had changed and the difference in price compared to nearby properties.

 

I think it is not that simple, what if the vendors were led to believe an inflated price and now the agent is working them down....

Often I am told things that should not be disclosed.

I tell agents only what they need to know & zip else. So is more likely to come from hints or ouright being told by agent that owners are desperate etc, not ever had any online tool tell me such a thing & I would not trust an algorithm to tell me something that has to do with emotion

 

Sometimes there's lots of signs. A lot of the time the agent will actually tell you as well.

But I don't see how this would change your negotiation strategy much. You would be applying your usual negotiation strategies anyway right?

 

Is this from a book or a course?

 

Try and give them a question that they cannot lie directly. For example: Are they getting a divorce?

 

Talk to the neighbours also. Just knock on their door and be polite. I have gathered many clues by doing this

 

In the spirit of New Year optimism, I like to think more about motivated vendors rather than people in distress. Search your favourite RE site for relevant words like "motivated", "must".

For those not ready to announce their motivation, DaftDrop AU - The AU residential & commercial property price history tracker, based on realestate.com.au house & property price data should help you find them .

 

This has been helpful for us, we're looking in small towns so even someone on the next street can give you the details, haha.

 

Also Old Real Estate Listings.

 

Yep....

You will find say a well functioning couple may negotiate and far more than a couple that are always at each others throats.

The buys where
I have had trouble was exactly the type that the OP thinks they may pick up a bargain over.

One the person took every non interested parties advice, it was on and off like a tap.....pain in the neck TBH.....only bright side is agent starts working for the more sane party, cause they get sick of the yoyo BS too.

Best ones are serious sellers....coupled with a serious buyer.

 

Designed by a nordic escher in her 80s for the Godfather?

 

@radioactive you build genuine relationships with agents so they trust you enough to tell you. Preferably by buying lots of houses so they know you are a genuine buyer.

Failing that the listing history (pricefinder/rp data) can give good clues.
Failing that there are paid subscription sites for deceased estate and mortgagee sales.
Failing that you just need to negotiate well.

 

last point is key along with having a keen sense for the market and values.

Come too think of it, without experience most have to just rely on some pot luck if you want a good discount or buy, I would say focus on the property and qualities and less on the few thousands you think you may save.

I have known many people who opted out of a buy over a few k, when the place doubles in value down the track or whatever it does, it is then when some reflect on the absurdity of it all and how they let that one get away.

 

Agreed. When sourcing development sites I tell me clients bluntly before they sign up that the site selection process will focus on ease of approval which is WAY more important than the perception of a bargain in the market. I have seen too many people walk away from easy flat corner sites in favour of "cheap" sloping blocks in flood zone with drainage problems and access problems other issues and then wonder why their development ends up costing more in the end. For that kind of thing getting the purchase right comes first. Buying low price comes second. For both knowing your values is key.