 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 3 e& e& O8 b( S" y9 B
falling market, like this one. The danger of doing so is that you buy before the 1 b, W' E. L% [& ~; C5 _- ]9 j
bottom arrives, and take a capital gains hit. The advantage is you hold absolutely all
$ c+ j; k% M ^0 Mthe cards, and can strike a great deal while the victim-seller is writhing in pain and
& ` Z+ m- I. {& g$ T2 E( C0 Rbegging for mercy. That’s the fun part.
; r# K* n/ n# m9 P% p! m+ W, r3 w
So, don’t ask me if it’s time to buy yet, because you won’t like the answer. But if
' u1 A% ^) F* p6 v6 |+ tyou want some tips on being a vulture, for when the moment’s right, then clip this
$ o! [( b9 e; Hand stick it on the fridge. (By the way, this is another preview of my coming book.) d3 {+ s4 t8 |) E, I0 e
* X& l4 B5 }) n. K. ]* Offer what you want to pay, not what the vendor is asking to be paid. With so many 4 R" Y6 ~" R& @9 L- }# A
properties listed, and so little sales activity, every offer has to be taken % ~/ L, w9 O. p9 S/ [
seriously. Only by writing up an offer on your own terms, at your own price, will you 6 H( _8 [# Y; I0 v' F
get a sign-back showing the true level of desperation you’re dealing with.
: M6 X# n, i( g8 a9 s7 v# j8 M u
+ m7 R, Z# b# {: E& U I* Always submit the offer with a deposit cheque, which is like putting a shiny lure on 6 C& n3 ~" q$ L6 E- S- n; W
the end of your fishing line. However, the offer must stipulate the cheque is not 9 E. k( Q- a" U1 j1 K6 p
cashable until a firm and binding agreement is reached. So, it means nothing, while 0 j" K+ o' x/ J7 ~
having a powerful psychological impact.
8 y( }1 F6 S+ ] o7 h
- ~3 j7 v' v) a) q1 B* Throw in as many conditions as you want. This will create an offer that is 0 K0 ~8 U" M9 t: b/ L5 f
completely tailored to your needs and wants while providing elements you can remove in
; k6 \6 W4 ?) Porder to gain things you truly want. So, for example, make the offer conditional on 3 H, G+ Y( M; }+ B. ]+ ]5 z5 Z
the vendors paying all your closing costs, including land transfer tax. While you
# E, o" r1 O8 d: m r5 enever expect that to happen, you can remove it during negotiations in order to get
6 n8 ]/ h8 N& a3 ?( lwhat you do want and expect, which is a bargain price.
. D3 q2 r7 \' m& H) I/ k' [; V0 E
# n7 g( w/ n; O, _, }8 ~3 k% h* Ditto for conditions giving you time to arrange financing or even to sell another
6 s7 K, `% ^, p* B: K$ qproperty – they are both traditional deal-breakers, and the vendor’s agent will know
) u1 L; k: M' j, y: [that immediately. So, by reluctantly removing them you move far closer to getting that 2 S4 ?, C: s7 w- c0 {
price.
/ p3 j2 E/ H! l' p4 t) [
' n& j5 o7 j( k' Y" f+ L% H* Best, however, to insist on a home inspection. This condition should give you five 0 V( M% K; a) ]/ w2 L+ c2 U
business days to complete the process, and is normally done at the purchaser’s
' P* t Q( P! y" V' z s! `expense. The reason you want this is because almost all properties need some kind of
0 ?' i+ b; U$ T4 {9 T4 `3 _work done in order to make them perfect, and when you get the inspector’s report you $ E# L$ _/ A; Z
have leverage to help you drive down the price. Simply get an estimate of the cost of
9 u- q- u# t# y9 W0 ^6 n' j* u/ X6 gthe repairs and ask for the deal to be rewritten with a price reduced by that amount.
; O- J* H/ S& B2 a: q* x7 sSince the vendor knows the condition is entirely for your benefit and the deal will
" Q0 |8 ^- R8 pdie unless you sign a waiver, well, guess what? Vulture.
% B5 V: M' X* r& W o7 Y7 A2 w
1 w) V2 ~, c% S: u, v4 m. m- N7 \* And remember that the closing date is also an important poker chip to play. Have
2 y& p z V. ~" ayour agent find out what the vendor wants, and then use that to help leverage the
" S7 d* B7 o5 | T8 V8 Kprice down. Additionally, you can throw any assets you see around the property into
% a. E/ |8 e9 h, E; qyour offer – power tools, appliances, lawn tractor, Harley-Davidson, whatever. The $ ~) N7 W( j$ P! K( `2 I7 n
more you put in, the more clutter there is for the vendor to wade through, and the
; `6 Y3 c( ~! {better chance you have of securing the best deal.
% K# T) i- C8 [1 E. `8 H
2 p5 R' ?8 j! u! ^- s4 R/ V* Speaking of which, why not make two offers at the same time on two competing
* o" H6 w/ v) W1 W. b+ x; Bproperties, and then let that fact be known (through your agent) to the vendor? That 7 J j. ^7 B# I: f% G5 d
will add even more pressure to the poor guy, as he tries to figure out what he must do 8 {- A7 n) c3 V' F
to save the deal, and give you what you want. This may be cruel and unusual, but just
. k+ Y- }' Q, c7 K8 Wconsider it payback for all those multiple-offer situations greedy vendors placed
8 v% @9 J' U9 r) r. Z j6 Hbuyers in during the bubble years.
+ m( S2 E/ X j3 w, O$ T
# N7 Z7 t$ ]( w* And, of course, you can make a low-ball offer, get a sign-back, and then just let it ' G3 K) M. G( {, w
die. Wait a week and go back in with another one, for the same low price. Odds are you
1 K; V) {- M! |8 \3 P) i- i7 ~will not get the same response this time. The stressed-out vendor may hate you, but ! X% Q' N0 _6 Z& `9 n
he’ll close. |
|