 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
# ^ _5 {( B, P7 t7 ufalling market, like this one. The danger of doing so is that you buy before the
+ n* P+ M: g5 m8 obottom arrives, and take a capital gains hit. The advantage is you hold absolutely all # [ g5 K- @0 t( g/ m& p7 Z2 F$ H) N
the cards, and can strike a great deal while the victim-seller is writhing in pain and
, W$ `; u. W$ Y0 a$ U" w/ }" jbegging for mercy. That’s the fun part.
5 v$ x: y6 l, e! K3 K+ Y7 o) @4 V7 `* \% H) J; p
So, don’t ask me if it’s time to buy yet, because you won’t like the answer. But if # x _ k' |5 C/ ?7 H
you want some tips on being a vulture, for when the moment’s right, then clip this ; _1 Z" w) S* P' G, k" V% ?0 U
and stick it on the fridge. (By the way, this is another preview of my coming book.)8 N/ O5 b2 q# E/ w. O2 x
1 D3 ]* V9 r8 m. U5 k) i3 j) k: G$ r
* Offer what you want to pay, not what the vendor is asking to be paid. With so many 0 w& G }4 f5 Q7 J \8 X L; _
properties listed, and so little sales activity, every offer has to be taken 3 w+ h1 \0 u7 {3 w) B
seriously. Only by writing up an offer on your own terms, at your own price, will you
9 E9 d0 W1 @. }+ Q5 vget a sign-back showing the true level of desperation you’re dealing with.
% r: j0 t& q; `: |3 b! n1 u4 s5 h+ b8 }5 k4 }" h: m B' l2 v
* Always submit the offer with a deposit cheque, which is like putting a shiny lure on
* a0 `' {5 ?/ S8 x" Ethe end of your fishing line. However, the offer must stipulate the cheque is not
# J n8 D' n- |& p+ B- }9 Y) p4 hcashable until a firm and binding agreement is reached. So, it means nothing, while
$ h: F% [3 D! K( ~+ M1 \having a powerful psychological impact.' {- v$ P$ ]* L- J6 e2 P& _3 c
- F0 m5 J8 ~1 [+ N1 n; P
* Throw in as many conditions as you want. This will create an offer that is : n r* e# K2 r# D0 s( d: j1 {6 ~
completely tailored to your needs and wants while providing elements you can remove in
3 q1 B1 @; M horder to gain things you truly want. So, for example, make the offer conditional on ! m7 ~$ y7 M {& v1 K
the vendors paying all your closing costs, including land transfer tax. While you
8 V! o+ o# c$ J% _$ H1 `. @never expect that to happen, you can remove it during negotiations in order to get 5 `2 b" w! S9 \! H4 U
what you do want and expect, which is a bargain price.
- l' N6 _. M% k: O4 [) e
: H2 I/ [+ X# o3 f* Ditto for conditions giving you time to arrange financing or even to sell another
7 s, y. H1 d2 U9 _# _8 ^/ b9 pproperty – they are both traditional deal-breakers, and the vendor’s agent will know ' @& M0 B. K9 T9 z, f( B' o# x
that immediately. So, by reluctantly removing them you move far closer to getting that - {% S3 b2 L( E$ y3 b0 K/ G; O
price.
7 R2 |% B7 w8 y8 a! w# X, k$ P% A% o. O6 [- l# m( U
* Best, however, to insist on a home inspection. This condition should give you five
" D1 ]6 }! C4 }- c0 rbusiness days to complete the process, and is normally done at the purchaser’s
/ a$ c3 C& N1 M5 \6 ~! M3 Hexpense. The reason you want this is because almost all properties need some kind of
! U) {) I1 Y/ Qwork done in order to make them perfect, and when you get the inspector’s report you
$ [+ F- Q b+ P H" x' @have leverage to help you drive down the price. Simply get an estimate of the cost of 9 ~: X% ]6 E" o6 X
the repairs and ask for the deal to be rewritten with a price reduced by that amount.
% F6 s( e5 `3 f2 @" rSince the vendor knows the condition is entirely for your benefit and the deal will $ K; X* o: O* r. U
die unless you sign a waiver, well, guess what? Vulture.
* G4 m n) q) r. i
r( g- W- N2 J6 B4 O/ s7 A" V7 e* And remember that the closing date is also an important poker chip to play. Have % }6 f4 _, w. w: p# s) Z) D
your agent find out what the vendor wants, and then use that to help leverage the " s) E4 F& B6 K* O2 ~: K
price down. Additionally, you can throw any assets you see around the property into
/ X: g i1 }0 `) M2 Uyour offer – power tools, appliances, lawn tractor, Harley-Davidson, whatever. The ! m# O* z+ o9 r$ t# w( j* D6 L
more you put in, the more clutter there is for the vendor to wade through, and the : n. ]7 O3 n( V3 o& @; Z5 e( E
better chance you have of securing the best deal.9 A4 c( f) ~+ Y8 S$ x/ Y' f. w
9 ?- m, t8 D, i0 J5 [; U* Speaking of which, why not make two offers at the same time on two competing * z1 U- l8 q0 t/ y' {& B5 E
properties, and then let that fact be known (through your agent) to the vendor? That ! h" ~/ O2 z2 h1 H
will add even more pressure to the poor guy, as he tries to figure out what he must do
. G: U7 J+ V; L3 E0 Y8 y$ Eto save the deal, and give you what you want. This may be cruel and unusual, but just
/ N+ |3 Z. ~& Econsider it payback for all those multiple-offer situations greedy vendors placed
/ `: V5 M' n7 l+ X( d0 @buyers in during the bubble years.
0 `" a) t- q( m- K
1 c5 n; U" o! o* N5 P* And, of course, you can make a low-ball offer, get a sign-back, and then just let it b( J2 p. w, r7 A% M7 g
die. Wait a week and go back in with another one, for the same low price. Odds are you 1 ]- r2 I, ` o: R! g
will not get the same response this time. The stressed-out vendor may hate you, but * f7 S4 q* w. H, \5 x1 k
he’ll close. |
|