Steve I know your not advocate of low ball offers but you do obviuosly negotiate some discount of the price. What sought of discount do you think is reasonable without going to extreme. Eg On a 200K house. Do you first of all tell the agents what you are doing before submitting these lower then normal offers. That way getting the agent to present the offer to the vendor better.
Thanks David.
I have more but I have to go to work.
Hey David,
I can’t speak for Steve but I know for myself I look at every property on it’s merits. I look at comparitive data and find out why the vendor is selling. I always try and getproperty fr 80% of market value. Now what is market value ??? It’s what I believe I could sell the property for the next day after I buy it. Makes life harder but certainly more profitable. Sometimes that means paying full asking price but other times paying much less than asking. A very subjective answer but it really depends.
Hope this helps.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinAre you buying cheaper end properties eg 100K or dearer end 200K plus. I think I would find it very hard to accumulate 30 properties this year paying 80% of FMV especially when houses I am looking at are around the 200K + mark. I must admit I am finding it easier to get discounts on the cheaper properties. Don’t ask me why.
Although I am starting to see changes in the market and am predicting that a lot of the offers I am now making will have higher success ratios.
Hey insider,
At this point in time I am buying houses closer to the $100K mark. I think the reason discounts may not be as good the dearer you get is because people do not look at discounting them on a % base but rather a $ base. So people see a $20K discount as being the same whether they sell a $100K house or a $200K house. The one thing I am sure of though is that there are houses out there in the $200K range that you can get at substantial discount. I am considering doing a much dearer reno very soon and I will be looking for a property to do. It will probably be in the $300K range. Few to finish off first then onto that job.
Good luck hunting Insider you will find what you are after and it will be worth the hunting when it comes.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
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