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Choice Your Real Estate At Cheap
Do you want a simple way to get cheap real
estate? Offer less. This is the oldest and simplest negotiating ploy
of real estate investing. Everybody knows this technique, at least
in it's crudest versions, but most are afraid to use it. Why? Well,
it can be embarrassing, and it can be a waste of time if you don't
do it right. On the other hand, do you really mind being a bit
embarrassed if it saves you $20,000? The very first piece of real estate I bought was a small lot for
which the seller was asking $4,500 (now that's cheap real estate).
Fortunately for me, in my ignorance, I didn't know then that offering
22% less than the asking price was considered insulting. Looking back
on it, I now understand why the realtor didn't want to present the
offer. In any case, the seller accepted my offer of $3,500, because he
was anxious to sell his last property before moving. A friend of mine bought a home on a lake for perhaps $40,000 less
than it was worth. How? He made the offer. He was always making low
offers as he shopped for a home, and of course this meant he had most
of his offers rejected. I might have even hinted to him that he was
wasting his time. Good thing he didn't listen. Would you be willing to
have a dozen offers rejected if it meant buying a home for a savings of
$40,000? Then there was the investor in California who routinely made dozens
of offers at a time on houses - without even look at them. He wrote the
offers for 25% less than the asking price, and included an inspection
contingency and other clauses to protect himself. Most sellers said no,
of course. Most did, but not all. He occasionally got some very cheap
real estate this way. Cheap Real Estate - Lowering Expectations At a seminar, a real estate investor once told
me,"If you aren't embarrassed by your offer, it isn't low enough."
Considering that he's made millions in real estate, he may be worth
listening to. You need to understand, however, that a truly low
offer will almost never be accepted. Is it a waste of time then? Not
at all, because there will often be counter-offers, and a low
initial offer is just a way to alter expectations. Suppose you think
your home is worth $300,000.....
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