 鲜花( 1)  鸡蛋( 0)
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I’m often asked by people who like to prey on others how to buy real estate in a 9 [; m' P- B4 ]7 e/ x$ k- k
falling market, like this one. The danger of doing so is that you buy before the ! T& y6 y# @! r9 C7 h: n4 S" N. z( J
bottom arrives, and take a capital gains hit. The advantage is you hold absolutely all
, `, e% D2 p2 `- d7 jthe cards, and can strike a great deal while the victim-seller is writhing in pain and
0 d' m( T3 N; x/ G9 Obegging for mercy. That’s the fun part.: _) ]: i. ?0 O
8 P) x3 W$ l$ R; gSo, don’t ask me if it’s time to buy yet, because you won’t like the answer. But if # X) s+ R$ L0 x2 f+ w3 G+ i
you want some tips on being a vulture, for when the moment’s right, then clip this " e. L o D s6 y+ Z; a* o
and stick it on the fridge. (By the way, this is another preview of my coming book.); `' y$ b" s2 ?
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* Offer what you want to pay, not what the vendor is asking to be paid. With so many - k2 J, v2 W( Q0 Y
properties listed, and so little sales activity, every offer has to be taken
; D* o6 X8 j: P; Y9 x8 _$ N: y' Lseriously. Only by writing up an offer on your own terms, at your own price, will you
" i, o6 i4 E9 N4 C9 _- X1 Vget a sign-back showing the true level of desperation you’re dealing with.
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) j1 z, Q4 ~( M, H' v# }* Always submit the offer with a deposit cheque, which is like putting a shiny lure on
) J; \+ h1 M- ythe end of your fishing line. However, the offer must stipulate the cheque is not 0 O7 U8 }. K2 c, J
cashable until a firm and binding agreement is reached. So, it means nothing, while & i9 _) t& D0 F3 {
having a powerful psychological impact.
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* Throw in as many conditions as you want. This will create an offer that is
5 I# G8 \* v0 s5 e9 @completely tailored to your needs and wants while providing elements you can remove in 7 s5 s6 W3 J. e: U9 i
order to gain things you truly want. So, for example, make the offer conditional on 1 V6 ?8 u9 B5 Y$ y* r# d- V
the vendors paying all your closing costs, including land transfer tax. While you 0 ]: H3 F& a' Q# ^
never expect that to happen, you can remove it during negotiations in order to get : ?. H: ^4 L( ~8 D5 D
what you do want and expect, which is a bargain price.
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" j" |8 d }- Y3 p( J; f* Ditto for conditions giving you time to arrange financing or even to sell another 2 D# z9 J- r5 l/ x' W
property – they are both traditional deal-breakers, and the vendor’s agent will know
9 {" e" C; V# T: \) Othat immediately. So, by reluctantly removing them you move far closer to getting that ( r2 f# |' Y8 \: F! M; ^' d
price.
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* Best, however, to insist on a home inspection. This condition should give you five
1 O, U& D2 ]' B" c8 Gbusiness days to complete the process, and is normally done at the purchaser’s
/ c* G, u5 y w. D, Bexpense. The reason you want this is because almost all properties need some kind of
8 ? V* e9 }0 R1 Ework done in order to make them perfect, and when you get the inspector’s report you
& @3 o5 U# G1 F5 v- u: {$ Ihave leverage to help you drive down the price. Simply get an estimate of the cost of 7 r* x" _( H7 M* a/ O' Z( Q
the repairs and ask for the deal to be rewritten with a price reduced by that amount.
! ?7 p7 g8 @2 e& d1 bSince the vendor knows the condition is entirely for your benefit and the deal will
$ l/ N* g# ?1 U6 A" K4 Z/ Qdie unless you sign a waiver, well, guess what? Vulture.
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7 d$ s0 J1 l! I" E( w* And remember that the closing date is also an important poker chip to play. Have
2 o& |6 y5 O. b3 V9 syour agent find out what the vendor wants, and then use that to help leverage the
9 J$ Q6 p; y3 E- q: k- o* dprice down. Additionally, you can throw any assets you see around the property into 7 _% C: F+ O* i" G& T4 t; y
your offer – power tools, appliances, lawn tractor, Harley-Davidson, whatever. The `8 i( \) t- m7 o# T6 C; L
more you put in, the more clutter there is for the vendor to wade through, and the # z' M; J' x' M5 M* y# U8 R& t
better chance you have of securing the best deal.
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# w5 S( |8 s; B* y5 @( R- Y. U* Speaking of which, why not make two offers at the same time on two competing . ^& ~3 r8 s' l* e* {3 [
properties, and then let that fact be known (through your agent) to the vendor? That
7 K6 K0 z1 Y: ]! Ywill add even more pressure to the poor guy, as he tries to figure out what he must do ; w$ j3 X5 R' q! o
to save the deal, and give you what you want. This may be cruel and unusual, but just * t! j% i/ Y, `% Q
consider it payback for all those multiple-offer situations greedy vendors placed
$ z, E" Y M- Z4 f4 l5 ~/ ~' r! A+ X/ Cbuyers in during the bubble years.: f7 }- ]9 ~7 `; `/ Y d5 F% x" R4 |
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* And, of course, you can make a low-ball offer, get a sign-back, and then just let it 6 [2 R+ Q" ?8 ~& R: _
die. Wait a week and go back in with another one, for the same low price. Odds are you
; e" b y3 Q% |0 l4 u2 w. lwill not get the same response this time. The stressed-out vendor may hate you, but 3 k R2 g, w5 W+ \ x- p4 r
he’ll close. |
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