 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
: G1 G! j1 \. ` T0 m: v+ |& k7 [falling market, like this one. The danger of doing so is that you buy before the
. x9 j7 _, v2 s" U) Zbottom arrives, and take a capital gains hit. The advantage is you hold absolutely all
1 R4 |* ]) r& J1 _6 bthe cards, and can strike a great deal while the victim-seller is writhing in pain and 5 w k p( f6 a9 _* r2 y. y( p/ E$ A& e
begging for mercy. That’s the fun part./ b( k- l: c+ F' @* ~
. S# A+ ~) q/ C/ lSo, don’t ask me if it’s time to buy yet, because you won’t like the answer. But if ( P3 r9 M: x2 ~! s
you want some tips on being a vulture, for when the moment’s right, then clip this 5 z9 s5 ^9 d; N
and stick it on the fridge. (By the way, this is another preview of my coming book.)
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* Offer what you want to pay, not what the vendor is asking to be paid. With so many
- _7 L3 `& Y2 j( K8 dproperties listed, and so little sales activity, every offer has to be taken
/ D1 k0 A) u% v ^; J0 \seriously. Only by writing up an offer on your own terms, at your own price, will you
, Z# c& g: T: j% A% lget a sign-back showing the true level of desperation you’re dealing with.+ G. M, V2 l+ `4 o* M
L$ V" K7 W8 [/ Y5 k4 V) E* Always submit the offer with a deposit cheque, which is like putting a shiny lure on + x" O" m; U$ l* a7 o7 x+ L3 C
the end of your fishing line. However, the offer must stipulate the cheque is not + P* R% O( x" F5 x" N; r
cashable until a firm and binding agreement is reached. So, it means nothing, while
9 H0 H w7 [- jhaving a powerful psychological impact.
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9 l+ w4 w" S" H* P/ [0 G" C* Throw in as many conditions as you want. This will create an offer that is
9 g$ S$ R6 G s5 h) ycompletely tailored to your needs and wants while providing elements you can remove in
& j& Q, d1 m5 }# Uorder to gain things you truly want. So, for example, make the offer conditional on 6 |& c+ n! _' e3 l2 c
the vendors paying all your closing costs, including land transfer tax. While you
* g o, t$ U' [never expect that to happen, you can remove it during negotiations in order to get
* G1 b8 y9 }& t% r0 owhat you do want and expect, which is a bargain price.+ s7 T; h( ^* o7 a# h }
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* Ditto for conditions giving you time to arrange financing or even to sell another 4 Q: D; H" o! h8 L1 L
property – they are both traditional deal-breakers, and the vendor’s agent will know 2 J0 A- x( v/ t! m% v q
that immediately. So, by reluctantly removing them you move far closer to getting that 2 y: h; i9 x) `2 H; I
price.- i. E- y) i) M) m8 ~6 X0 I' C
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* Best, however, to insist on a home inspection. This condition should give you five
5 \8 W% c6 h6 ?9 J3 a1 nbusiness days to complete the process, and is normally done at the purchaser’s
" \: M2 F. E, \3 z0 oexpense. The reason you want this is because almost all properties need some kind of % E& u% U3 u0 f
work done in order to make them perfect, and when you get the inspector’s report you
# Q3 U) i; r. g( ~ E- Jhave leverage to help you drive down the price. Simply get an estimate of the cost of
7 m" f* N& R0 {7 t1 i. T# H2 G! y, wthe repairs and ask for the deal to be rewritten with a price reduced by that amount.
1 e0 ]8 [. ^: W7 xSince the vendor knows the condition is entirely for your benefit and the deal will 9 i; J7 }; ]+ S5 ?0 d- J5 A
die unless you sign a waiver, well, guess what? Vulture.
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" _3 Q0 p8 ]. b$ i* And remember that the closing date is also an important poker chip to play. Have
8 k. @3 ~2 w/ ^: z2 `your agent find out what the vendor wants, and then use that to help leverage the
- r% m$ d" d4 c( Y, t# R' [price down. Additionally, you can throw any assets you see around the property into
4 `3 G& W4 S/ Q. {) pyour offer – power tools, appliances, lawn tractor, Harley-Davidson, whatever. The
* v' U9 g5 _7 \6 A9 ~6 J5 H. umore you put in, the more clutter there is for the vendor to wade through, and the
0 T& x1 y7 q/ g7 z; Y% t# E9 Ybetter chance you have of securing the best deal.% |4 F: o! ]% G; P# l9 u+ I
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* Speaking of which, why not make two offers at the same time on two competing
3 }" E4 b/ e- Z2 B# `% V. S+ F- Uproperties, and then let that fact be known (through your agent) to the vendor? That / O) d: L" V0 l; k# n/ P3 |$ j7 v
will add even more pressure to the poor guy, as he tries to figure out what he must do
- K6 u2 ~1 [* h/ P3 b5 s1 l6 Y" Qto save the deal, and give you what you want. This may be cruel and unusual, but just
- Q( A/ M! y# y }consider it payback for all those multiple-offer situations greedy vendors placed
( s `% U1 B# W5 {* |$ A; F. Jbuyers in during the bubble years.6 b R9 T4 e: f: w# H8 |, }
; O# r) o# S* R' ^% E* And, of course, you can make a low-ball offer, get a sign-back, and then just let it
3 w/ O8 [5 y$ W; Odie. Wait a week and go back in with another one, for the same low price. Odds are you 7 K7 }6 j+ W/ b2 }0 J
will not get the same response this time. The stressed-out vendor may hate you, but
! j W9 V8 ^# ]# I4 C6 k# q* }' k, Whe’ll close. |
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