 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
& b7 l3 X0 J$ @' F! ~0 U" Bfalling market, like this one. The danger of doing so is that you buy before the
* o2 b/ m. w2 w9 V6 _' Jbottom arrives, and take a capital gains hit. The advantage is you hold absolutely all
0 ^1 Q/ b% l3 X/ z8 Lthe cards, and can strike a great deal while the victim-seller is writhing in pain and
8 D# s" C6 V# V$ y6 f& L6 L& {) obegging for mercy. That’s the fun part., w2 O; T3 s+ o% r' V* T8 v
" B$ [, @4 P4 V- |5 j9 vSo, don’t ask me if it’s time to buy yet, because you won’t like the answer. But if
2 X4 s1 i$ R* N3 s3 V2 Nyou want some tips on being a vulture, for when the moment’s right, then clip this
0 H. V+ S2 v* ^$ Mand stick it on the fridge. (By the way, this is another preview of my coming book.)$ ~7 t! J* Y# x+ I' e
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* Offer what you want to pay, not what the vendor is asking to be paid. With so many
) z! U/ J6 G* E0 [' U1 Zproperties listed, and so little sales activity, every offer has to be taken
5 k# H! m' m) x; l% tseriously. Only by writing up an offer on your own terms, at your own price, will you ; c; x/ n1 G! B
get a sign-back showing the true level of desperation you’re dealing with.+ T- V. a, y. \; M" d: Q" S5 l5 Q
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* Always submit the offer with a deposit cheque, which is like putting a shiny lure on
5 B% r' R. ?# H7 G$ r8 C! Ythe end of your fishing line. However, the offer must stipulate the cheque is not + l2 W" N2 E& m5 X z. ], \
cashable until a firm and binding agreement is reached. So, it means nothing, while
8 y% J9 ~7 y. C/ c; c5 nhaving a powerful psychological impact.
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5 y) c9 t; m8 W! O; z$ r* Throw in as many conditions as you want. This will create an offer that is
$ k2 f" a6 p5 Y7 h8 b5 O0 scompletely tailored to your needs and wants while providing elements you can remove in 3 Z+ R4 a( s, x r
order to gain things you truly want. So, for example, make the offer conditional on # `/ {# F# a8 E, O" n n$ Q
the vendors paying all your closing costs, including land transfer tax. While you
( K) Y8 i; {, [9 ?) y( `never expect that to happen, you can remove it during negotiations in order to get
+ n, ]2 l$ p. {. S+ twhat you do want and expect, which is a bargain price.! C* Q+ l) i0 q3 r# e
2 o \* b% f9 ]# a* Ditto for conditions giving you time to arrange financing or even to sell another % o- P j% R: s- v
property – they are both traditional deal-breakers, and the vendor’s agent will know 4 T! A0 y; g$ w9 @! T8 w. y
that immediately. So, by reluctantly removing them you move far closer to getting that
! v5 {* s/ | x8 N/ oprice.
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* Best, however, to insist on a home inspection. This condition should give you five
8 j" w& V$ P+ X- }& G/ obusiness days to complete the process, and is normally done at the purchaser’s ( P# Y* Y# p0 d5 Q" k0 Y
expense. The reason you want this is because almost all properties need some kind of % e6 \$ {2 T9 a% f2 D
work done in order to make them perfect, and when you get the inspector’s report you
7 U* |; x: G6 g$ W! d k- dhave leverage to help you drive down the price. Simply get an estimate of the cost of
5 J, I1 C1 A- }$ q9 Gthe repairs and ask for the deal to be rewritten with a price reduced by that amount. 1 ?# Q" j& \" f: E, p
Since the vendor knows the condition is entirely for your benefit and the deal will & s8 F# B9 r5 ?# E) s0 [
die unless you sign a waiver, well, guess what? Vulture.5 ]0 M4 [) T. Y# [0 _, W5 A
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* And remember that the closing date is also an important poker chip to play. Have
/ I ~; M9 Z+ H0 Oyour agent find out what the vendor wants, and then use that to help leverage the
* k% [6 H8 G6 w- Fprice down. Additionally, you can throw any assets you see around the property into
6 R( y# \+ T* m2 Vyour offer – power tools, appliances, lawn tractor, Harley-Davidson, whatever. The
( i- a3 T' i: H5 }7 a& Smore you put in, the more clutter there is for the vendor to wade through, and the ) ~& P% d" M8 g# q, M
better chance you have of securing the best deal.
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2 l: l" I" J! H3 \# N1 j) o$ x* Speaking of which, why not make two offers at the same time on two competing
# a; D/ a( O. a: Xproperties, and then let that fact be known (through your agent) to the vendor? That / `0 C# i! l. `- [6 k s/ p: p
will add even more pressure to the poor guy, as he tries to figure out what he must do
2 }0 p- J! j" E7 C7 v4 mto save the deal, and give you what you want. This may be cruel and unusual, but just # n7 S; [1 x2 O! I1 _# ~
consider it payback for all those multiple-offer situations greedy vendors placed
2 a" k% L9 H6 {# Cbuyers in during the bubble years.
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& X# G+ i. c7 S, y) S, |3 M. D0 X* And, of course, you can make a low-ball offer, get a sign-back, and then just let it
+ R/ o( @# p+ [/ C& z0 z2 Idie. Wait a week and go back in with another one, for the same low price. Odds are you
" U8 f4 k$ g- pwill not get the same response this time. The stressed-out vendor may hate you, but
: N+ [/ W* ^0 z3 G! {/ w4 }he’ll close. |
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