In a recent YouTube video, I explain how to get below market value deals from RightMove and estate agents. These methods will help you whether you are a property investor or a deal sourcer looking to find great deals for your investors. In the video, I give 7 detailed tips that can help anyone to buy a property for less than it is worth. Please watch the full video (above) until the end, as it contains important information you will not want to miss out on. In this article, I will briefly summarise these 7 techniques.
1. Cash Buyer Advantage
If you can buy for cash, or your investor can buy for cash, you have an advantage! Even if you offer less than someone else, if you can move much faster than them, you may still get the property. Make sure that the agent knows that you will be buying in cash, if you are able to do so, and that you are ready to act quickly.
2. Strong Offer with a Good Solicitor
Even if you can’t buy with cash, you need to make it clear you can move fast. Get a solicitor lined up ready to go and tell the agent their details. This makes you look professional and shows that you will be able to get the purchase over the line quickly.
3. Prepare Your Documents
Much like the previous point, this is about moving quickly. The agent will need your solicitors details, your correspondence address, photo ID, proof of funds (bank statement and decision in principle, if you are using a mortgage). Have this all ready in a folder and show it to the agent. This will make it clear that you are ready to buy.
4. Numbers Game
Remember that getting a below market value deal takes time! You can’t make a few phone calls and then decide there are no good deals out there. Never get overly invested in a particular property. You want to be dealing with motivated sellers, not become a motivated buyer yourself! Make offers on a number of properties, and be prepared to hear the word ‘no’ a lot!
5. Transparent Communication
You don’t want to waste your time, and you certainly don’t want to waste the agent's time. Therefore, you need to be open in your communication. Rather than viewing lots of properties and putting in low offers that could put the seller and the agent's backs up, you need to qualify the property first.
The best way to do this is with an ‘if then’ question. Say to the agent “I am interested in X property, but to be honest, if I did end up putting an offer in, it would probably be around the £X mark. I don’t want to offend anyone or waste your time, do you still think it is worth me viewing the property?”
6. Criteria Call
Even if you don’t see any properties that meet your criteria on RightMove, it is still worth phoning local estate agents and asking if they have any deals that do meet your criteria. It is possible that they might, or even if they don’t, they can add you to their contact list.
Many of your deals will come from agents. Make sure to thank them when you make a purchase. Take them a bottle of champagne and make sure they know you are grateful. Be as loyal as possible with an agent and try to buy from them whenever you can. If you are loyal, they will start to become loyal to you and send you the best deals first!