Have you ever wondered if it’s possible to find real estate bargains in today’s competitive housing market? Below market rate (BMR) homes — properties priced well below their actual market value — do exist if you know where to look. And the rewards of uncovering these undervalued gems can be tremendous.
Whether you’re a first-time homebuyer, real estate investor, or just searching for a great deal, BMR properties allow you to maximize your purchasing power and potentially generate substantial savings or profit.
The key is having the right strategies and tools to identify prospective BMR opportunities before most other buyers. It requires dedication, persistence, and understanding where motivated sellers and undiscovered deals may be hiding.
But take heart, because with the proper approach and some determination, landing dream BMR homes in the San Francisco Bay Area can become a reality. This guide will uncover proven methods that anyone can apply to uncover coveted below market rate properties.
Cultivate Relationships with Local Real Estate Agents
One of the most effective ways to gain access to potential BMR deals is building strong rapport with experienced local real estate agents. Unlike the average homebuyer, agents have their fingers on the pulse of new property listings in your area before they hit the mass market. And that inside track often allows them first dibs on that fixer-upper gem or short-sale property priced enticingly below its actual value.
But simply reaching out to agents randomly isn’t enough. You need to establish yourself as a serious buyer so that when an agent encounters a promising BMR property, you become one of the first calls they make.
That means consistently following up on potential leads, assessing properties in a timely manner, and making reasonable offers if a deal looks solid. Essentially, you want agents to recognize you as someone who walks the walk, not just talks the talk.
It also helps tremendously to concentrate on nurturing relationships with a select group of agents that focus on areas of interest to you. Get to know them personally and understand the types of below market inventory they commonly encounter. Whether you’re looking for foreclosures, auction properties, fixer uppers, or land deals, identify agents that specialize in sourcing those acquisitions.
In time, as you gain a reputation for being a reliable buyer, you become top of mind for agents the moment they come across a new BMR listing matching your criteria. In real estate, it often boils down to who you know. So put in the effort to know the right people.
Monitor Public Notices and Foreclosure Listings
When homeowners fall behind on mortgage payments and face foreclosure, it often motivates them to sell their property below market rates for a quick, stress-free sale. Put yourself on the radar for those opportunities by monitoring public foreclosure notices in your target neighborhoods. Sites like Foreclosure.com provide localized listings across thousands of cities so you can zero in on distressed filings.
You’ll want to pay particular attention to pre-foreclosure properties, as their owners likely want to avoid foreclosure auctions and will be more amenable to reasonable offers. Confirm the property has solid market viability through comparative analysis and factor any repairs into your pricing.
Then make an aggressive but fair offer to the distressed seller that still lands you an enviable deal. When executed properly, foreclosure purchases can generate substantial savings and enable you to rebuild equity through renovations.
Explore Pre-Auction Offers
If bidding wars and auction frenzy aren’t your style, then circumventing that chaos through pre-auction offers may be a great route for BMR deals. Most property auction websites now accommodate early Purchase an inspected property using bitcoin in the San Francisco Bay area offers submitted before the actual auction date.
This gives you an opportunity to thoroughly assess a property’s potential value, condition, neighborhood demand and then craft an enticing yet cost-effective pre-auction bid.
Suppose that offer lands within the acceptable range that the auction house or bank would expect on auction day. In that case, they may accept it and close right then and there. That preempts competing bidders from ever entering the picture and hands you the property well below expected auction market prices.
Just be sure to still build enough of a buffer within your pricing to cover unforeseen rehab costs. Pre-auction bids require swift action, decisive due diligence and possibly some negotiation finesse. But executed properly, they enable bargain deals without the risk of overbidding in a pressure cooker environment.
Search Property Auction Websites
Online property auction sites like Auction.com list thousands of bank-owned, foreclosed and distressed property listings scheduled for upcoming auctions. One little utilized hack for finding BMR properties is sorting those auction lists by the longest time on the market.
Rationale being — homes still failing to garner buyer interest after prolonged listings often indicate motivated sellers who will prioritize closing a quick sale over maximum sale price.
Pay special attention to listings stale for 60+ days and demonstrate solid comps. Then scrutinize photos, disclosures and inspection reports to gauge rehab costs. Understanding a property’s after-repair value and potential rental income will help you identify acceptable bid prices to stay below market.
Another pro tip — don’t get fixated on the opening bid price, which auction houses purposely set low to attract bidders. Focus instead on recent closed sales of comparable properties to dictate your bidding strategy. Play your pricing cards right at auction and you may just land better than market rate terms.
In Closing
The allure of securing that dream home or lucrative investment property below actual market rates is undeniably strong in pricey regions like the San Francisco Bay area. Hope resides in knowing that below market rate real estate opportunities do materialize if you pursue the right channels. From leveraging insider intel with local agents to direct sourcing motivated sellers — actionable paths exist to secure your own BMR deal with diligence and savvy negotiation.
