 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
' _ U3 d* g7 W8 b- @& yfalling market, like this one. The danger of doing so is that you buy before the ; g. Y" f$ o2 p+ ~. }+ m
bottom arrives, and take a capital gains hit. The advantage is you hold absolutely all
7 O1 {. @* H) l; d* V' Zthe cards, and can strike a great deal while the victim-seller is writhing in pain and ! n) |1 v6 T, N) ^1 L$ Y
begging for mercy. That’s the fun part.
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5 Y; A# \, G4 ?So, don’t ask me if it’s time to buy yet, because you won’t like the answer. But if 5 `6 E" o2 l0 R1 F2 b
you want some tips on being a vulture, for when the moment’s right, then clip this
J) M% ]2 I! G' Y7 `! Dand stick it on the fridge. (By the way, this is another preview of my coming book.)
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2 A6 |% r3 t; z; ?/ c7 H5 e- d7 H* Offer what you want to pay, not what the vendor is asking to be paid. With so many & l4 P' N2 B4 k. p" Y, y8 S
properties listed, and so little sales activity, every offer has to be taken " _* W" f+ d" ^& I! D2 {# M' n+ |
seriously. Only by writing up an offer on your own terms, at your own price, will you ! k3 u+ B0 U1 I& p, f n; n
get a sign-back showing the true level of desperation you’re dealing with.. [& r! Z" i$ e8 T/ n+ Y
% G. X6 w- Y3 w4 ?3 v# k* Always submit the offer with a deposit cheque, which is like putting a shiny lure on
' q, s) D3 K3 M" } D' t+ @: uthe end of your fishing line. However, the offer must stipulate the cheque is not ' P0 H8 S. a% ~9 U# e: f# g
cashable until a firm and binding agreement is reached. So, it means nothing, while
; M0 ?# u( v! j# i- O) x( ghaving a powerful psychological impact.
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{2 K( a$ b+ H( X; a# y+ g* Throw in as many conditions as you want. This will create an offer that is 3 w3 _5 h/ C# R* W3 `2 x0 E
completely tailored to your needs and wants while providing elements you can remove in / A, o4 e' x3 j% D6 D- _7 M
order to gain things you truly want. So, for example, make the offer conditional on 6 T9 t l- Q4 C6 e: s
the vendors paying all your closing costs, including land transfer tax. While you
0 w7 k" t! m; o! {. o6 J5 I- xnever expect that to happen, you can remove it during negotiations in order to get 8 n+ k$ n' O) h/ Y d% h
what you do want and expect, which is a bargain price.
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) Z% D# N: E5 V* o0 d0 u! [: f7 P* Ditto for conditions giving you time to arrange financing or even to sell another . E1 U- q2 x. c# V
property – they are both traditional deal-breakers, and the vendor’s agent will know
. q9 l; l, w' U$ c% _' ^5 E, Kthat immediately. So, by reluctantly removing them you move far closer to getting that " s9 S, J) r) s$ S* c8 [/ o
price.
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: k; J8 a& M2 C1 v6 }: P* Best, however, to insist on a home inspection. This condition should give you five
" u2 E( F& v% s0 b( V3 Mbusiness days to complete the process, and is normally done at the purchaser’s
+ l8 Z; P/ Z# ?3 t) F) s# k2 p$ _expense. The reason you want this is because almost all properties need some kind of
9 ?- M. N0 T x4 z! H. Gwork done in order to make them perfect, and when you get the inspector’s report you 5 n5 p. `5 Z' e/ z) j( S2 o' I$ b$ q5 H1 S
have leverage to help you drive down the price. Simply get an estimate of the cost of 6 F! h$ ]1 W1 {" a+ m8 k4 e
the repairs and ask for the deal to be rewritten with a price reduced by that amount. 5 U! S3 R `! L) @
Since the vendor knows the condition is entirely for your benefit and the deal will
4 _5 U; i' y# v7 i/ U$ s, Kdie unless you sign a waiver, well, guess what? Vulture.
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B0 f1 n) {* y- L! t* And remember that the closing date is also an important poker chip to play. Have
9 n- F2 b4 P" }. _your agent find out what the vendor wants, and then use that to help leverage the
l: }( L! N4 g& W7 uprice down. Additionally, you can throw any assets you see around the property into % K* K9 \' h' D4 Q- O$ T
your offer – power tools, appliances, lawn tractor, Harley-Davidson, whatever. The ( b- E8 S7 s. O! s! d
more you put in, the more clutter there is for the vendor to wade through, and the # Y2 Q3 N8 p: e) a! x! z/ P% A
better chance you have of securing the best deal.
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u; x& Y/ J+ z, h$ `* Speaking of which, why not make two offers at the same time on two competing
0 Y7 L- w5 W+ a2 l @properties, and then let that fact be known (through your agent) to the vendor? That
# D3 l6 A" n+ F4 p) ywill add even more pressure to the poor guy, as he tries to figure out what he must do
) @) W1 k q F9 cto save the deal, and give you what you want. This may be cruel and unusual, but just ' }. X9 ]7 M* R( n9 u5 j6 Y& ?
consider it payback for all those multiple-offer situations greedy vendors placed * V2 `/ r; G" ^' R
buyers in during the bubble years.2 C I2 `/ ~ s0 O- J
/ H4 t; n9 z! ]& ?( [& Y+ f* And, of course, you can make a low-ball offer, get a sign-back, and then just let it + Y) b" z' q( _6 s1 ~! b
die. Wait a week and go back in with another one, for the same low price. Odds are you 3 k; O9 G3 d" }: R
will not get the same response this time. The stressed-out vendor may hate you, but 8 U, F; v3 q1 Z; ^- g
he’ll close. |
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