How to Uncover Great St. Louis Real Estate Deals in Today’s Market
It’s a fact that real estate prices have been rising across the country. It’s hard to find homes at a discount anymore. That makes it tough for would-be St. Louis real estate investors and house flippers to find good deals.
Real estate experts say that increased competition even at the foreclosure auction level is driving prices up. Foreclosure auctions, bank-owned property sales, and short sales still exist, but today St. Louis real estate investors have to be more creative to find great deals.
Here are some tips on how to do just that.
Look for St. Louis Properties That Aren’t Currently for Sale
Frequently, a St. Louis property gets sold that isn’t even on the market. Landlords may not even know that they want to sell yet, but if you make them an offer, they might take you up on it. Also, some landlords intentionally don’t list their properties for sale for fear it might upset their current tenants. So, instead, they shop them around quietly.
Don’t wait for St. Louis property owners to find you. If you find a St. Louis neighborhood you like, try to locate owners and start up a conversation.
Move Quickly and Offer Cash
It’s important that once you do see a great deal come on the St. Louis market, that you place an offer as quickly as possible. Real estate pro say to make an offer within the first 24 hours of a new listing. If you can, making an offer the same day is even better.
Keep in mind that many homes receive multiple offers. This means that offering an all-cash deal may make sellers more inclined to choose your offer.
Consider Investing in Teardowns
With a teardown, you’re essentially investing in what could be. Often there are smaller, run-down homes in a city that could be torn down to make room for a larger home or even an apartment building depending on the zoning. Since these properties are in highly desirable locations, you can sell them to developers for a profit.
Look for the Worst House in the Best Neighborhood
St. Louis homes in need of serious fixing up or that have foul odors have less competition. Smells are easy to fix, so don’t worry about buying a house that smells bad.
Remember, however, that you want the overall neighborhood to be nice. You can’t fix the location, but you can fix the house.
Some lenders may not issue loans on St. Louis homes in serious disrepair, so that is something to consider as you’re house-hunting.
Consider Investing Outside St. Louis
You may want to invest in St. Louis real estate, but live in an expensive metro market. If this is the case, consider other markets where properties are cheaper.
If you do invest outside your local St. Louis area, you will need to do considerable research first to determine what the neighborhoods are like and what you can charge for rent. You will also most likely need to hire a property management company, which cuts into profits.
St. Louis real estate investing is not without risk. As a landlord, you may have tenants who never pay their rent on time or trash your rentals. House flippers may have difficulty obtaining permits or find that their costs for renovation are more than originally expected.
In the long-term, St. Louis real estate tends to go up in value. But real estate experts say to be cautious in the short-term as values can go down. Great deals can still be had in today’s St. Louis real estate market, it just takes a little bit of ingenuity in finding them.