 鲜花( 1)  鸡蛋( 0)
|
I’m often asked by people who like to prey on others how to buy real estate in a # M! A1 q; t0 B2 {' @. r+ w
falling market, like this one. The danger of doing so is that you buy before the
- w, t0 m: \3 I- A9 zbottom arrives, and take a capital gains hit. The advantage is you hold absolutely all
; \ B# N" K5 f1 H. Wthe cards, and can strike a great deal while the victim-seller is writhing in pain and
& L! h! o' L, K, Y5 Y# Zbegging for mercy. That’s the fun part.4 n: |$ I6 C7 _
" B& A5 @9 p. l( d; l( @# F1 wSo, don’t ask me if it’s time to buy yet, because you won’t like the answer. But if
& U/ r) Y/ `; F$ {# Ryou want some tips on being a vulture, for when the moment’s right, then clip this
$ C2 I% t1 F9 I. |* `$ [2 |, P; kand stick it on the fridge. (By the way, this is another preview of my coming book.)9 o5 `$ [7 c6 J; G
+ b/ I8 C! \3 o k# [* Offer what you want to pay, not what the vendor is asking to be paid. With so many / U# C* @' @* @
properties listed, and so little sales activity, every offer has to be taken
6 h; K' E Y6 `9 p" f2 Xseriously. Only by writing up an offer on your own terms, at your own price, will you / y# m# J4 p0 e9 w& r
get a sign-back showing the true level of desperation you’re dealing with.
1 | x- |- {6 u0 m$ N$ U0 T7 C" e1 D
* Always submit the offer with a deposit cheque, which is like putting a shiny lure on
: C. P0 `2 M @, S! }the end of your fishing line. However, the offer must stipulate the cheque is not
2 F# S% Z; t0 [. X f3 Ocashable until a firm and binding agreement is reached. So, it means nothing, while
* p1 |1 L+ j1 \$ h+ |2 h5 xhaving a powerful psychological impact.
% _; h& z7 u: ]( `9 F, @! v }3 c$ V3 o! B" g7 P. B8 O% ]7 F
* Throw in as many conditions as you want. This will create an offer that is
3 A _! T5 C% jcompletely tailored to your needs and wants while providing elements you can remove in
6 } `* X9 m+ v# n, Q3 _; i9 Worder to gain things you truly want. So, for example, make the offer conditional on
. ?' X1 y' d8 _. U) O3 X6 sthe vendors paying all your closing costs, including land transfer tax. While you : V4 w% R. t' F
never expect that to happen, you can remove it during negotiations in order to get
8 L p9 [ E7 n4 L Ywhat you do want and expect, which is a bargain price.
: `" W6 C; l" y3 e
7 L3 `% x0 A& F$ y! H( j4 z* Ditto for conditions giving you time to arrange financing or even to sell another / v# H( i8 [4 V/ g1 ^; {" E1 T' b
property – they are both traditional deal-breakers, and the vendor’s agent will know $ R5 z* a+ V5 u' t
that immediately. So, by reluctantly removing them you move far closer to getting that
% A0 Q! e% f$ Z2 aprice.' Z8 Z0 k9 y! u( `% l
* g1 G2 V; e0 }& a5 O
* Best, however, to insist on a home inspection. This condition should give you five % l/ L* h) C. W9 j
business days to complete the process, and is normally done at the purchaser’s
4 J7 N7 Z; _0 s: K7 i% k0 M* D, hexpense. The reason you want this is because almost all properties need some kind of 3 u* Q: T; ^* D" f! O& r& x! i
work done in order to make them perfect, and when you get the inspector’s report you
8 p/ G9 s+ p( D. q6 Fhave leverage to help you drive down the price. Simply get an estimate of the cost of 0 P4 C; a6 X, H0 P( w# l
the repairs and ask for the deal to be rewritten with a price reduced by that amount.
: f! [2 U" ^0 |; V! n" MSince the vendor knows the condition is entirely for your benefit and the deal will 7 H& n) ~: N! A* {) }2 l
die unless you sign a waiver, well, guess what? Vulture.$ ~0 U3 O7 r! U# {7 S) P
1 @) ~ b$ s) ^) ]6 `* And remember that the closing date is also an important poker chip to play. Have
1 n: T: {1 E9 [, V: f6 N1 Z+ Eyour agent find out what the vendor wants, and then use that to help leverage the
. k! m2 e6 X+ Y# M0 L- Nprice down. Additionally, you can throw any assets you see around the property into
! K9 B C' E$ W5 A8 m- a9 ?1 Fyour offer – power tools, appliances, lawn tractor, Harley-Davidson, whatever. The 6 [' s, k& ]/ s1 H* G8 g
more you put in, the more clutter there is for the vendor to wade through, and the # h2 p0 ]. k0 k( t4 ^
better chance you have of securing the best deal.. \3 V# {3 R a9 Q7 W5 X; C
1 |- g6 b" h2 h. s6 R! r, C* Speaking of which, why not make two offers at the same time on two competing
% C; `, D# i" \* [0 `/ Z& S5 ?7 Iproperties, and then let that fact be known (through your agent) to the vendor? That 0 i$ k+ w( I& R A
will add even more pressure to the poor guy, as he tries to figure out what he must do
" Q+ a5 k+ L& [, ?5 rto save the deal, and give you what you want. This may be cruel and unusual, but just
8 ~5 C' I: t4 g3 L1 A2 p: [- \consider it payback for all those multiple-offer situations greedy vendors placed 5 |+ `" J# P+ _! H A/ H
buyers in during the bubble years.$ Q" J. M9 H2 ~$ d4 B# f4 s2 y
6 k7 ^3 N% P) i- r* And, of course, you can make a low-ball offer, get a sign-back, and then just let it 0 w: ?4 X# d0 D+ B3 M/ R
die. Wait a week and go back in with another one, for the same low price. Odds are you ) a" f8 E! @; B0 z7 Y; [
will not get the same response this time. The stressed-out vendor may hate you, but
4 ?2 l9 f3 f* g1 F; f1 zhe’ll close. |
|