It seems that the available housing “For Sale” Inventory is low which is driving the Purchase Prices up above the Listing Price in many areas. Articles abound of Sellers listing property and having it “bid-up” for a sale, which IS good for us Investors. However you should hear them cry when they try to find the next house to purchase and move into, which “isn’t priced fairly for them…” As my father used to say: “A Rising Tide Lifts All Boats!”
Couple of quick points
1. The technique these Sellers and Listing Brokers are using starts with Pricing a Property below the market value. When this generates interest, they line the Buyers up with: “Please submit your highest and best offers by 5:00 PM Monday. We’ll review the Offers and get back to you.” Ouch! when that same technique is used on the former Seller now Buyer…
2. As Real Estate Investors, we know that we make the Deals! I haven’t yet seen a “Clearance” or “Half-off” sale in the Real Estate market where I look to buy but I have put together many “win-win” deals that Retail buyers can’t believe. That’s how we make money or we walk.
3. Why the Appreciating market IS good for us? Can you can recall trying to buy in the post 2005 Declining market while attempting to keep a profit margin with little or no qualifying Buyers? You’ll welcome this market with all the cheap financing money! Often this Appreciation increases our profit margin, from our initial expectations.
Speaking of making the Deals. My daughter Allison is working with two buyers and should have them into great Deals very shortly. One is a VA qualified buyer. This is the absolute best financing deal for Veterans and it should be. Without their volunteering for military service we might have a very different life. However VA’s rigid Home Inspection Requirements eliminate a lot of potential property. Allison often asks me:
“Dad, Why can’t these people take care of these problems? You could fix those things on the way to an Investors (October 29) meeting!” One – These are Retail Buyers and not used to dealing with Contractors. Two – The VA knows the required work might never get done. The problems could get worse and lower the property value.
Again, speaking of Deals and Home-Runs… This Red Sox hard working team has made it to the World Series, GO SOX!
We’re looking forward to Attorney Joe who’ll speak to us Tuesday October 29, 2013 6:30 – 9:00 PM, we’ll have his resume out shortly.
I’m on a Member Recognition Committee at the North Shore Realtors Association, at the Banquet last week I spoke to one of our MassRealEstate.net members. He told me he gets about 85% of his, big, listing business from knocking on doors and asking “Do you know anyone interested in Selling their home? Here’s my card if you do, thanks.” If you’ve ever done this, you know it’s a humbling experience. So my advice is to: set your expectations low, maybe one in 40, bring a couple dog biscuits (or a can of mace), have plenty of business cards and a Listing/Selling Agreement. Most importantly remember that the seldom door slammed in your face brings you one step closer to a great deal and a great Seller!
What’s been your experience with Door Knocking?
Good luck investing, we’re glad to set you up with listings sent to you each morning. Or pre qualify you for funds to purchase, I was able to get two of these out this past weekend and good luck to those Buyers – Mike Hurney, Director MassRealEstate.net PO Box 307, Marblehead, MA 01945 781-639-8616
PS Thanks for the referrals on that Apartment we had for rent – It went right away, to our first qualified Tenant!