How I Identify Good Deals When Searching For Homes Online

hello everyone and welcome to another real estate video this is Xavier Danya the real estate YouTube guy here in Phoenix Arizona helping you accomplish your home goals so in today's video we're gonna get a little more interactive for you guys when you're working with a real estate agent or a lender of some sorts yes they're licensed yes they know what they're doing but the big advantage we have over most people is we have experience so what we're gonna do today is while I'm chatting you guys his ear off we're going to have my laptop on the screen and I'm going to do with you guys real time how I identify good deals in the market and how identify if we have a good chance of getting the property or looking at it but before we begin if this is the first time you're watching welcome to the channel I make weekly real estate educational videos to help you accomplish your home goals if you like this video really if you don't mind please like and subscribe and if you're already a home go home and just like it you know the drill alright let's get to it first thing I do when I start a search is I just go to a general quick search to just get a good sense of everything so what I'm gonna do now first we're gonna make a search for a buyer who's looking in Gilbert which is a East Valley City here in Phoenix they're looking up to $350,000 they want a four-bedroom two-bath for the sake of this search I'm not gonna get too particular or picky about what they're looking for so we'll just start it off with that when I create a search I always like to go just like maybe 5,000 more above reason I do is because sometimes sellers are greedy and they say well my house is worth 350 but I'm really gonna list it at 350 - because I want to get those extra two thousand dollars so I always like to add just a little more just to make sure we get everything want to focus in single-family homes because in this case the body does not want a tab house or condo we're gonna focus on like I said a four-bedroom two-bath homes in the city of Gilbert Arizona so here on screen this is what I love about the MLS you're able gonna actually see what boxes pop up in what houses are available every green box you see is something that still shows active on the MLS meaning it's still available so just so you guys can see what I meant if I move this to 350 it goes down to nine so there was another four houses that came up in those extra 352 353 which is why I always do this so you know just you can see what I'm talking about so now what the first thing I do before I even look at any houses all right before identify good deals or not good deals the first thing I do is I figure out the sense of how the market is in that area is it a hot market is it a cool market what's the situation so right now there's 13 active properties so what I do now is I look at what's under contract and what's pending so there's three phases of a home purchase there's when it's active and available that there's when it's under contract or pending and then that's when it's closed closed that's already closed there's nothing you can do pending it's literally the 30-day period where you're still working on closing the deal so most of the time it takes about 20 to 30 days for a house to close so according to this there's been 59 houses that have been under contract in the last 0 to 30 days in the Gilbert area now if you remember there was 13 houses that were available so what I like to do now is I find the ratio of how many houses get listed and how many gets sold at any given time and this is how I do it hey guys it's Xavier sorry I just noticed a math mistake so I'm fixing his post-edit looking my dumb face how dare I make that mistake anyways so I want to just clarify the math here so the first thing you got to do is you combined your total pending listings and your active listing so you can find out what your total amount of listings are at the moment so in this case there was 13 active listings and I think 59 pending listings so there's total 72 so for you guys find your total listings first and once you have that what you want to do is you divide your amount of pending listings by your total listings so in this case it would be 59 divided by 72 if you break it down this means out of 72 listings that you put on the market 59 are under contract big number can't really you don't really get the emphasis in it so what you want to do at this point or at least what I do is I find what the total percentages so what you do is you divide my case 59 divided by 72 I get 81 point 9 so on average about 82 percent so if this means 82 percent of listings they can put on the market sell right away once again emphasis isn't quite here so what I do here is I find what the fraction is so I guess I kind of need you guys to do some you're on your own and I really know how that would work in my case what I'm gonna do it's 82% I'm gonna run it down to 80 so 80 would be four out of five so therefore I can assess that out of every five listings hit on the market four of them are expected to sell right away thus giving me an idea of how hot the market really is approximately eighty percent chance the house is gonna sell immediately right away and a 20 percent chance that this house is going to stay on the market for a while so this is telling me it's really hot I mean clearly five houses get listed four of them sell really really hot market usually when there's there's a 50% ratio maybe half of them sell half of them don't sell shows like a warm market and if there's a clear distinct that there's more houses being listed then being bought at any given time probably in the tens or twenties or thirties prevailing below fifty really that's where it shows me it's a really cool market so Gilbert already I'm already coming into the mindset of this is really hot market things are selling quick now something that I'll do next which you might not be able to do but your realtor can do for you is I look at the close listings for the last 30 days what the reason I do this is because I want to just get a track record of what's happening in that area with closing costs if they're selling for more money if buyers are getting what they want or if sellers are getting what they want in that area so I'm gonna do it now in the last 30 days there's been 30 houses that have sold and if I look remember I only went up to 350 I start with the highest number and I already started noticing some houses that sold for 365 what that tells me is that even though it was listed at 350 and that's why it pops up in our search the sold price is a lot higher so already I can tell out of the 30 houses three of them have sold over bliss price and if I can actually click the MLS I can show you guys I can see how many days it took to sell so in this case it took three days of sell and I can see if the seller paid any closing costs so in this case this house was so nice that it sold within three days for fifteen thousand above value and the seller did not give any closing cost of the buy this one it was elissa for 350 ended up selling for 360 no closing cost given next one listed for 350 so for 355 from no closing cost given I'm already getting a feel that in this area buyers are gonna be in a position where they might have to cover their closing cost so at this point we know if it's a hot market or not and what buyers generally are getting out of their deals when they're negotiating with these buyers so that gives me a good sense of what it is what is to come and now I start looking at the ones that are currently available so here in this general price range there's 13 houses for sale right now meaning if you were a buyer right now you wanted to start your search in this area this would be the houses that you can pick from now remember most of the time the house you end up buying is not the one that's actually for sale right now so just keep that in mind all right let's start off by talking about this one down here and the 328 range so what's the first thing I look at when I look at an MLS search I always scroll down and I see how many days on the market this house has been on the market for in this case it's been 54 days the next thing I notice is has it ever been under contract and the reason is because it might be 3040 days on the market already but what if we went under contract for 30 days well then at that point it really wasn't on the market for 44 days it was really on the market for like five or ten and somebody bought it and they just recently fell out of escrow who knows what well in this case status changed it was listed on the sixth and they changed it they here but it doesn't show that it was been under contract or anything like that so this one's been on the market for 54 days and it hasn't gone under contract next thing I look at is I see if there's any big changes to the price the original list price on this one was 332 the price now is 328 so they have done a price reduction so at this point my brain is telling me something's not right here hasn't sold we know the markets hot in Gilbert so it doesn't make sense why it's still on the market so I do the next thing that you probably all would all do is we look at the photos is this a good house or not because I looked at the photos I've already at this point have a trained eye so you guys might not see the same things I do I notice the tiles look older the grout is kind of darker grayish paint is a nice yellow with the cabinets with the brown so you know probably not very modern aesthetic hasn't been created probably countertops would look like a nice rounded edge granite and cabinets do look like in pretty good shape but overall you know it's it's in good shape but not amazing like perfectly condition shape so automatically I can see that this is not a house that's gonna be like oh man it's gonna fly off the shelf this is kind of if I were to 1 to 10 in the quality you not quality boom rather aesthetic and you know sell ability of it it might be like a 6 or 7 comes with the washer and dryer and the backyard is kind of non-existent it's just like some pavers really nothing else going for it I mean it's not an ugly house so it should have sold quicker so without looking at the comparables in the neighborhood in the market I naturally come to the assumption that it hasn't sold because it's a little overpriced now this might be a good opportunity for us to either get closing costs paid by the seller this will probably one of those chances where we can get them to give us some closing cost or you can come in and more aggressively with the price this is a situation where you as the buyer have a little more leverage now we can make a lower offer and the seller can be unreasonable and say no we're not working with you that case we can't do nothing we have to move on but this is the situation that's clearly in a good opportunity for us to get closing costs now here's another one this one is a good example of what I was telling you earlier if you look at the days on the market it says 27 39 days which you would automatically assume all it's been on the market for a long time but what I see here is that it was listed on the 24th but it actually went on the market on the 7th and it was under contract but it fell through on the 31st so it really only took a few days to sell it and it's truly only had been on the market now because this is Charlie June 2nd or June 3rd so it's only been on the market for a few days so don't let the day's our market fool you here it seems like it's higher but really it's not it's just they happen to leave their house on their contract instead of pending which let those days kind of stack up so this is a situation where days our market isn't really on our side and now I look at the price it's sold right away for the price that it's listed at so odds are it probably will sell again so it's already looking like it might be a high-end demand situation and I could tell it looks really nice inside the pictures are very well a flooring is laminate not so great looks like older cabinets well not in the best of shape so I think the value of this house though is not necessarily what's inside the house but the amount of bedrooms because for 355 you're getting five bedrooms instead of three or four bedrooms and I bet you if it's sold so quickly it's probably in a pretty decent area so oh it has a nice big ol yard too so yeah there's a lot more going for this house so this is one situation where I probably would call and figure out hey what's going on here if there's a situation like this one where it's only been one day on the market odds are is you're not going to try to get much leverage out of them because when that's so new on the market even if they are not getting any showings they're not going to take lower offers because they're just listening either what are they what would you say in this situation if you got a lowball offer your first day you would probably be like now let's keep waiting to see if there's anyone else coming up and last but not least we'll look at this one four bedroom two and a half baths just got listed two days ago I can see it's 339 and as you start you know just looking for a house and getting into your search you start realizing what houses sell faster than other so something like this to me I kind of get the sense that what's so quicker it's a two-story home has a beautiful yard inside looks immaculate perfectly well painted looks like new countertops and you've flooring throughout so something like this and your kitchen looks really good would probably sell way quicker than most so in this situation because it's a new listing I would probably call them verify with a seller to see if it's still available or if there's any offers on the table but most of the time something like this will sell a lot quicker so all-in-all this is a good idea of what I do to look in the house and look and figure out what's a good deal or not a good deal in summary if a house has a long days in the market hasn't really reduced a price that much hasn't had been under contract for a while that's a good opportunity for us to try to get a better quote/unquote deal either lower price or more closing costs if the house is newer the odds of getting a little better deal will be harder but more importantly as you start looking into more houses you start getting a sense of which houses are so a lot quicker so if the marketing is right it's newer on the market your agent calls and there are multiple people looking in and multiple offers odds are the ability for you to get a good deal was out the window and you need to do what you need to do if you love this house go in above value ask for closing costs etc also it's very very helpful to know when you're looking through the houses that have sold look at the quality look at the photos like for example if we do that right now if we go back to our under contract and pending homes I bet you most of these ones are gonna have great photos well there I was wrong but most of them will have great photos one or two story homes really no granite countertops nice our flooring stuff like that right so if you if you really go through these pending houses and really absorb them and then you go back to your vacant sorry to your active search and you start seeing comparing the differences you're gonna start realizing which houses sell and which houses don't so if it has great marketing and it feels like a nice decent house and and then it's newer on the market or it just came back on the market odds are this is a competitive situation so go all-in alright guys well thank you so much for your time I appreciate you if you actually state through the whole video thank you so much I really do appreciate it if you're interested I actually just released a new II work book it's like a digital interactive workbook where you basically learn all about the home buying process and things that you need to prepare for before talking with your Realtor or lender it is available now and if you don't want that I actually have a home ghost community where I give weekly free advice and I'm gonna start doing free weekly live kind of a Q&A sessions just for my subscribers and people that join it so if you're interested link is below you can sign up it's next to my fillable stuff so go feel free to do that if you're in the Phoenix Arizona area and you're looking for a realtor I am available for you feel free to reach out all my contact information is below thank you guys so much for watching for your time it's been a long day thank you so much for watching guys I appreciate your time let's make it a wonderful day [Music]

Channel: Javier Vidana

Views: 62,644

Keywords: FIrst, Time, Home, Buyer, AZ, Arizona, Costs, buying a house, Down PAyment Assistance, JAvier, Vidana, Real Estate, Phoenix, Avondale, Goodyear, Tolleson, Buckeye, Glendale, Peoria, Agent, Realtor, How to buy a house, DPA, How to get a good deal, am i getting a good deal, search for houses, house hunting, looking for houses, oppurtunity, negotiating, good deal, bad deal, searching homes online, hot to find a good deal, buying a home, first time home buyer

Id: ZRN5JXRfL0E

Length: 15min 21sec (921 seconds)

Published: Fri Jun 05 2020