 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 / d7 r9 a- u5 [7 @' G
falling market, like this one. The danger of doing so is that you buy before the
* D4 e9 ~* Q: t! j5 n8 `0 S9 Zbottom arrives, and take a capital gains hit. The advantage is you hold absolutely all
( X1 n$ F( P* H5 p9 m7 Tthe cards, and can strike a great deal while the victim-seller is writhing in pain and
! j% L8 ]4 u3 R$ D" t+ ubegging for mercy. That’s the fun part.
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; N: y/ {; R% S: N6 B' ]$ a8 g% LSo, don’t ask me if it’s time to buy yet, because you won’t like the answer. But if 2 O2 y; K: u3 m# x: ?. ]$ ^) q" z
you want some tips on being a vulture, for when the moment’s right, then clip this / ?( l( ? R5 b1 I& X3 w/ d; j
and stick it on the fridge. (By the way, this is another preview of my coming book.)
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* Offer what you want to pay, not what the vendor is asking to be paid. With so many
2 ]7 F& |& g& t, T# v1 H8 Y: gproperties listed, and so little sales activity, every offer has to be taken ( n* l- c3 w2 I8 w& R- c A
seriously. Only by writing up an offer on your own terms, at your own price, will you
6 w4 T, X: k# E) R, |2 X1 m. _get a sign-back showing the true level of desperation you’re dealing with.9 C! h4 W/ K5 i$ L
" z0 R( G7 V1 Q# S6 K. |* Always submit the offer with a deposit cheque, which is like putting a shiny lure on " H# N( m; Z/ P) F0 I- M/ e$ F9 I
the end of your fishing line. However, the offer must stipulate the cheque is not . | P3 t7 F1 L" g
cashable until a firm and binding agreement is reached. So, it means nothing, while 3 u m6 e$ a5 F# t8 I+ u- ^
having a powerful psychological impact.
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* Throw in as many conditions as you want. This will create an offer that is + \% u% I v8 @+ n: ?
completely tailored to your needs and wants while providing elements you can remove in
! H% {0 J! a( W7 S h, Morder to gain things you truly want. So, for example, make the offer conditional on
& G; Z) Z+ ~" N# v f: \the vendors paying all your closing costs, including land transfer tax. While you
# R( ~) n7 T8 Z9 } Knever expect that to happen, you can remove it during negotiations in order to get
9 j( u, X, ?/ z: u+ D' N7 W6 bwhat you do want and expect, which is a bargain price.* q \; H) [/ m# ^2 `
7 _3 E# H r' C) O* Ditto for conditions giving you time to arrange financing or even to sell another ) p7 y ~( Y7 H
property – they are both traditional deal-breakers, and the vendor’s agent will know ^) X8 P0 C% i& r6 k; Q
that immediately. So, by reluctantly removing them you move far closer to getting that 1 W" R: _# r" q
price.
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9 S1 A9 g7 B! f0 S p* Best, however, to insist on a home inspection. This condition should give you five
9 ?5 F S4 i; a4 M5 i, r8 mbusiness days to complete the process, and is normally done at the purchaser’s / V5 p( c, ]$ n p
expense. The reason you want this is because almost all properties need some kind of ' J5 w) j! J: T! z: n
work done in order to make them perfect, and when you get the inspector’s report you
+ X! H5 w$ c& R! d4 Q1 K4 Q. qhave leverage to help you drive down the price. Simply get an estimate of the cost of
, n' I7 J0 H8 I1 O' H0 uthe repairs and ask for the deal to be rewritten with a price reduced by that amount. \7 P/ B1 n5 i. \6 a
Since the vendor knows the condition is entirely for your benefit and the deal will
8 u- ~: m) C$ p1 `* W# J: B* Odie unless you sign a waiver, well, guess what? Vulture.
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* And remember that the closing date is also an important poker chip to play. Have 8 U3 [; a' l! C3 t
your agent find out what the vendor wants, and then use that to help leverage the
" ]7 C1 k3 C+ S& Fprice down. Additionally, you can throw any assets you see around the property into
1 m/ P5 e! D, _3 Oyour offer – power tools, appliances, lawn tractor, Harley-Davidson, whatever. The
" _# ^) E' R0 t" `: |% [) m3 Amore you put in, the more clutter there is for the vendor to wade through, and the + W- T. L$ k2 h: j/ `9 O
better chance you have of securing the best deal.
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* Speaking of which, why not make two offers at the same time on two competing
# g- }9 K2 B0 A, V% u$ Oproperties, and then let that fact be known (through your agent) to the vendor? That
) _3 O5 z: ^ F& x6 [7 Twill add even more pressure to the poor guy, as he tries to figure out what he must do
9 H, B. D) a0 w$ {4 C- Uto save the deal, and give you what you want. This may be cruel and unusual, but just 1 B7 R) A; n- A* L" _0 I8 B
consider it payback for all those multiple-offer situations greedy vendors placed : _3 ^& A! |3 u$ [
buyers in during the bubble years.
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* And, of course, you can make a low-ball offer, get a sign-back, and then just let it 8 L- n0 {) n$ {! m7 t
die. Wait a week and go back in with another one, for the same low price. Odds are you
" c& {: V: ]9 T* j3 Y0 V) T0 twill not get the same response this time. The stressed-out vendor may hate you, but : E2 t+ V: v' n, T( n n
he’ll close. |
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