o you want a simple way to property before moving.
get cheap real estate?
Offer less. This is the A friend of mine bought a home on
oldest and simplest negotiating a lake for perhaps $40,000 less
ploy of real estate investing. than it was worth. How? He made
Everybody knows this technique, the offer. He was always making
at least in it's crudest low offers as he shopped for a
versions, but most are afraid to home, and of course this meant he
use it. Why? Well, it can be had most of his offers rejected.
embarrassing, and it can be a I might have even hinted to him
waste of time if you don't do it that he was wasting his time.
right. On the other hand, do you Good thing he didn't listen.
really mind being a bit Would you be willing to have a
embarrassed if it saves you dozen offers rejected if it meant
$20,000? buying a home for a savings of
$40,000?
The very first piece of real
estate I bought was a small lot Then there was the investor in
for which the seller was asking California who routinely made
$4,500 (now that's cheap real dozens of offers at a time on
estate). Fortunately for me, in houses - without even look at
my ignorance, I didn't know then them. He wrote the offers for 25%
that offering 22% less than the less than the asking price, and
asking price was considered included an inspection
insulting. Looking back on it, I contingency and other clauses to
now understand why the realtor protect himself. Most sellers
didn't want to present the offer. said no, of course. Most did, but
In any case, the seller accepted not all. He occasionally got some
my offer of $3,500, because he very cheap real estate this way.
was anxious to sell his last
Cheap Real Estate - Lowering
Expectations That is one of the primary
functions of a low offer; to
At a seminar, a real estate alter expectations. When a seller
investor once told me,"If you is asking $300,000, and you offer
aren't embarrassed by your offer, $250,000, will he accept your
it isn't low enough." Considering offer? Probably not. He'll almost
that he's made millions in real certainly reject it. Getting
estate, he may be worth listening cheap real estate isn't going to
to. You need to understand, be that easy. He may
however, that a truly low offer counter-offer, however. Suppose
will almost never be accepted. Is you go back and forth, and
it a waste of time then? Not at finally agree to $182,000. He
all, because there will often be might not have considered selling
counter-offers, and a low initial this low before, but maybe now it
offer is just a way to alter even seems like victory to him
expectations. after starting at $160,000.
Suppose you think your home is Of course you'll lose a lot of
worth $300,000. You mention to a potential properties this way.
friend that you are considering Sellers sometimes won't even take
selling it, and he says, "You subsequent offers seriously once
should be able to get $250,000, you have offended them with your
right?" You ask another friend extreme offer. You might avoid
what he thinks the home is worth, this by assuring the seller that
and he tells you $260,000. How his property may indeed be worth
confident would you be about your what he is asking, but that it
$200,000 estimate of value now? only works for your purposes at a
You might lower your lower price. On the other hand,
expectations, right? so what if you have a lot of
rejected offers. Isn't a bit of cheap real estate?
rejection worth it to get really
About the Author:
Copyright Steve Gillman. Visit his website for:
1. A photo of a beautiful house he and his wife bought for $17,500.
2. A free book on how to save thousands buying your next home.
3. A free real estate investing course.
Visit http://www.HousesUnderFiftyThousand.com
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Steve Gillman
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