 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
( b N3 `0 D& u7 s4 {! Vfalling market, like this one. The danger of doing so is that you buy before the
" a2 C5 [* y+ | a- `( z! V7 L- Ybottom arrives, and take a capital gains hit. The advantage is you hold absolutely all : K3 s1 @- K6 m: \- a
the cards, and can strike a great deal while the victim-seller is writhing in pain and & |) u* ?/ O( Y* H" v
begging for mercy. That’s the fun part.
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* R1 K4 X! e' ?So, don’t ask me if it’s time to buy yet, because you won’t like the answer. But if 1 S$ @% m% B& u) e% f
you want some tips on being a vulture, for when the moment’s right, then clip this
) q2 z2 @: F0 p# Z Fand stick it on the fridge. (By the way, this is another preview of my coming book.)
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3 ~" ^! x0 \" h7 j+ u9 L J* c+ D* Offer what you want to pay, not what the vendor is asking to be paid. With so many
, C- d, [; j* g. q! aproperties listed, and so little sales activity, every offer has to be taken 9 ?! }) C1 a2 ~% v0 I* ?
seriously. Only by writing up an offer on your own terms, at your own price, will you
; e" G- Z' b3 `) }0 I* V aget a sign-back showing the true level of desperation you’re dealing with.
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* Always submit the offer with a deposit cheque, which is like putting a shiny lure on X/ x2 I- s* B; L2 U1 [) d6 H) y: J) D& `
the end of your fishing line. However, the offer must stipulate the cheque is not " g: y# Z$ K" V) p! }4 _% J
cashable until a firm and binding agreement is reached. So, it means nothing, while
6 E F7 t, J1 r6 Q- fhaving a powerful psychological impact.
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* Throw in as many conditions as you want. This will create an offer that is 0 X. j3 P, @( g% ]; _0 z( g
completely tailored to your needs and wants while providing elements you can remove in ) F% m+ {1 }5 Q1 }5 U
order to gain things you truly want. So, for example, make the offer conditional on % h' y$ t+ o4 ^: U
the vendors paying all your closing costs, including land transfer tax. While you
5 }" g W7 s. W. r5 ?never expect that to happen, you can remove it during negotiations in order to get
0 _+ G5 p8 ]1 N$ M( E0 V* O8 fwhat you do want and expect, which is a bargain price.7 d9 G5 F. c/ k$ c. P
* X9 R$ x$ q+ D8 @9 A* Ditto for conditions giving you time to arrange financing or even to sell another
2 _0 k& P3 S: I: \property – they are both traditional deal-breakers, and the vendor’s agent will know 0 E" [# ?/ a% M3 o( E6 U$ W/ @8 \
that immediately. So, by reluctantly removing them you move far closer to getting that
3 c, _) i3 {% T) |5 i8 O7 ^price.
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* Best, however, to insist on a home inspection. This condition should give you five
4 h8 G+ i* I2 _business days to complete the process, and is normally done at the purchaser’s 9 ~6 D0 }$ ^) l+ `- m) h `& p
expense. The reason you want this is because almost all properties need some kind of
8 [0 R1 R" \# j! x& l2 f& h4 xwork done in order to make them perfect, and when you get the inspector’s report you 1 B+ Y* z. L6 {2 o
have leverage to help you drive down the price. Simply get an estimate of the cost of
2 C% E, a- v' Wthe repairs and ask for the deal to be rewritten with a price reduced by that amount. . [ d& X! I: E: P% C1 C2 U
Since the vendor knows the condition is entirely for your benefit and the deal will 1 b$ \; N( t+ m
die unless you sign a waiver, well, guess what? Vulture.( D3 R; V8 K* M& ]. J* [
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* And remember that the closing date is also an important poker chip to play. Have
; B6 U1 v! ^7 K' s$ w- p2 Dyour agent find out what the vendor wants, and then use that to help leverage the : N3 [, r" q9 ^- C' Z0 v; T* B
price down. Additionally, you can throw any assets you see around the property into
, |- `4 S, S/ @2 y5 D- n% [- h" uyour offer – power tools, appliances, lawn tractor, Harley-Davidson, whatever. The 3 l X, {- k; K' R
more you put in, the more clutter there is for the vendor to wade through, and the
/ E$ G$ z6 c4 Q( E4 bbetter chance you have of securing the best deal.5 }7 h. k; G4 [' H
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* Speaking of which, why not make two offers at the same time on two competing - p: R6 d2 t3 y$ x2 G: k
properties, and then let that fact be known (through your agent) to the vendor? That
# x0 h& U8 M! J. ~, `/ e, N/ Rwill add even more pressure to the poor guy, as he tries to figure out what he must do
+ P6 h: |+ a' Mto save the deal, and give you what you want. This may be cruel and unusual, but just * x: s+ h; @3 U& _7 K! P
consider it payback for all those multiple-offer situations greedy vendors placed
3 ^: n& d7 z" l8 D; hbuyers 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
C6 ~2 K5 @5 q8 [die. Wait a week and go back in with another one, for the same low price. Odds are you
2 [! W" r) d% }& {9 G2 ?will not get the same response this time. The stressed-out vendor may hate you, but / q& d5 j* w! W5 |* Y1 Y
he’ll close. |
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