Closing a good deal requires a lot of analysis, and investors face lot of analysis crisis when it comes to closing a deal. In order to overcome analysis crisis, investors need to have lots of information and they should make sure that the deal is really worth, since they have a margin profit line there. These information and analysis will help you decide if you should make an offer. First thing is to know the property value. Take help from professionals in appraising the property or follow realtors, appraisers and banks in determining the worth of a property, who look at comparable sales, usually three to five sales of similar property close by. The properties should be similar to the maximum. A comparable sales price of every property bought or sold for the place you want information about, should be listed, and try to understand the market and get information in whatever ways possible. File the comparable sales lists and information for future use. The second thing is to find the cost of the repairs from two different sources, from the seller and from a good licensed, bonded contract and get bids from more than one contractor recommended by other investors. When a property worth $100,000, which does not require any repairs, comes for a closing deal for $70,000 which is 30% below market value, it is a good deal, following the Rule of thumb: A good deal should be at least 20% below market. But you can negotiate an even better deal and get a signed contract, and that's where money lies in real estate. If not negotiated, even though it is a good deal, the investor's profit margin is reduced. Property value changes according to situations. In case of tax assessment and other such regulations over property, the owner would have the property value less, and on the other hand, if he borrows money against the property, he would want it appraised as high as possible. Since property has different value depending on situations, get consultations from professionals in the market to know real values for properties today. A quick survey can be done to see if it is a good deal, and offer can be placed in with a contingency, and then a compete analysis done. But finally the trick in closing a good deal is acting according to the market trends and making a bold decision at the right time.
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