3 Simple Ways to Ferret Out Undervalued Properties

3 Simple Ways to Ferret Out Undervalued Properties

Published On: May 25th, 2022

If you’re thinking about purchasing a multifamily investment property, you know that finding an undervalued property is a great way to maximize your investment. Check out these three simple ways to find undervalued properties in Silicon Valley (in addition to having the right real estate agent on your team).

3 Simple Ways to Ferret Out Undervalued Properties

Your real estate agent will be there for you every step of the way to help you find properties that are right for your investment portfolio. However, here are three easy tips you can use to find undervalued properties to get the most out of your investments:

  1. Crunch the numbers
  2. Find motivated sellers
  3. Look past the façade

Here’s a closer look at each.

Tip #1 for Finding Undervalued Properties in Silicon Valley: Crunch the Numbers

when you see a property for sale, the first thing you need to do is look at the historic trends in that area. Check out the comps – properties that are similar in size, amenities and location – to find out what they’re selling for.

You should also look at where the area is in terms of growth; is it a busy area? Is it up and coming? Has it already seen its heyday? All of these questions can help you determine whether a property is poised to appreciate strongly.

Related: 3 types of real estate deals that aren’t for the faint-of-heart

Tip #2 for Finding Undervalued Properties in Silicon Valley: Find Motivated Sellers

Though few sellers will actually tell you or your real estate agent why they’re selling at this time, it’s important that you try to find sellers who have strong reasons for trying to sell a property quickly. Often, a job change, change in family status, or exhaustion with property management can drive a seller to want to sell quickly. Intern, that seller maybe more willing to negotiate and give you a better deal.

Related: Should you buy a distressed property?

Tip #3 for Finding Undervalued Properties in Silicon Valley: Look Past the Façade (Literally)

Smart investors don’t worry too much about curb appeal when they’re looking for undervalued properties. That’s because many sellers misjudge how much value curb appeal can add to a property. It’s important for you, as an investor to look past a property’s exterior appearance. That’s because, as long as it has good “bones,” you can make the property more valuable. In fact, exterior improvements are among the easiest (and most cost-effective) fixes to make.

Related: How old should you be when you start investing in real estate?

Why Should You Look for Undervalued Property?

It’s important for investors to look for undervalued property because doing so helps them maximize their profits. That’s true whether you intend to flip the house or rent it to tenants. When a property is undervalued and you’re able to make a purchase, you have more funds free for improvements – and those improvements will increase your profits.

What Role Does Your Real Estate Agent Play in All This?

It’s always important to have a good real estate agent on your team when you’re a real estate investor. Your agent will be the one passing along property listings to you, and if you know how to gauge whether something is undervalued, you’ll be able to spot the properties that can earn you the most.

Are You Buying or Selling a Duplex, Triplex or Fourplex in Silicon Valley?

If you’re selling a duplex, triplex or fourplex in Campbell, Cambrian Park, Los Gatos, San Jose, Santa Clara, Saratoga, Willow Glen or another community in Silicon Valley, we’re here to help. Call today or fill out the form below to find out about our innovative marketing plans that can put your investment property in front of all the right buyers.

If you’re also looking for a new multi-family property for sale or another type of home, check out our: