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Finding Hidden Gems in a Low-Inventory Market

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Everything Real Estate in the San Fernando Valley
Wednesday September 23, 2020
Finding Hidden Gems in a Low-Inventory Market

Modern problems require modern solutions, and the modern problem is a severe shortage of homes. This modern problem, however, is bolstered by the assumption that only homes that are listed as for sale are available. It’s understandable how you’d think that - it’s reasonable to assume that if someone wanted to sell their home, they’d say so. A growing trend of “going under the market” is allowing buyers to find homes that weren’t listed, provided they can meet the typical “take-it-or-leave-it” price that potential sellers are putting up.

Hot markets can be “hot” for a number of reasons, but a major one is lack of supply. Finding sellers-who-don’t-know-they’re sellers is a great way to offset some of the buyer-side negatives associated with “hot” markets. Let’s cover some tips for how to find these hidden gems.

First, you need an agent who is willing to go the extra mile. It’s important to distinguish between professional real estate agents, and people who got their real estate licenses because they thought it would be easy money. The latter is rarely worth hiring, as they got into the business for the sole purpose of making quick cash. Professionals are just that, professional; they take pride in their craft, and always go the extra mile to improve their skill set. The Chernov Team is comprised of professionals, we do not waste our time with hobbyists out for a quick buck.

In order to find hidden sellers, an agent can do a number of things. The first step is to look for expired home listings. Expired home listings tell your agent that someone wanted to sell, but ultimately did not do so. These people represent a good time investment, since they are more likely to be willing to sell again when there is a buyer who is ready, willing, and able to purchase at their desired price.

Another slick method of finding buyers an agent may us is to target a specific location, and check the tax records associated with the address, looking for tax records that show a mailing address that is different from the property address. When you spot a property that matches, you can be fairly certain that the property is an investment property. If you can make the “investment” worthwhile to the seller, you may be able to convince them to sell the house.

There are also things that you, the would-be buyer, can do to increase your chances. First, as in life, it’s important to be flexible; the rules are different when dealing with people who didn’t list their homes for sale (there are none), so you need to be capable of playing ball on their terms if you want the home. Next, get pre-approved for a home loan; sellers will take you more seriously when they know you are serious, and have the means to follow through. Finally, there’s a really good chance that the newly-discovered-maybe-seller will investigate their options, thus, it pays to move quickly in order to avoid a bidding war.

At the Chernov Team we are professionals, and we know that knowledge is power. One of the most powerful pieces of knowledge is how to find hidden gems. At the Chernov Team we understand that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.

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