OfflineI am always trying to figure out how to get real estate at a cheaper price. The price you pay for a property is absolutly crucial. Knowing that, one of the things I do all the time is get a reduction on the price I offer. Here is what I do. This works almost everytime, come to think of it, it has NEVER failed me. I have even gotten it to work on foreclosures which are bought "as is". Although I have done this at least a dozen times, I will use the most recent one as an example. About 3 weeks ago I had an offer accepted on a bank owned property (foreclosure) for $56,000. The house is in great condition and will probably appraise for around $80,000. So I am getting it at a steal. Most people would probably be happy just to get it that cheap, but not me. I sent in my inspector to do a whole house inspection and we found out some wood needs to be replaced around the foundation. I had another contractor come in and give me an estimate to fix it. His estimate was a whopping $400. SO here is what I did. I called my real estate agent and asked her to revise my offer. I told her "I want to reduce my offer $2500." She said "you can't do that the estimate was only $400!" I told her to submit it anyway and guess what. They agreed! Yes, I bought a foreclosure "as is" and after the offer was accepted got them to reduce it another $2500! I do this almost every time. Why does this work? Because the seller has commited at this point and just wants the property to sell. Don't get greedy, just ask for a small amount. The worst thing that can happen is they say "no" and you can still buy the house at the accepted offer price. This is a great technique. Try it.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
at what point do you ask for the price reduction? Right when you receive their acceptance?
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I was so intent on immediately trying this that I forgot to say thank you for the tip, CBR. I'll try it on my next offer.
Always grateful for your advice,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
a couple of days after the offer was accepted, that @ least would make sense to me, but, thats why i LOVE cbr, he thinks like me, seriously though, thats the crap that i do EVERYDAY, i negotiate when i buy sneakers @ the mall, clothes, you name it, and guess why i do it, because it embarrases my girlfriend?, NO, but i love that part too, i do it because it works and i pay less than every other person that walks into that store and buys the same pair of nike air maxes, think about it? would you like to pay 70$ instead of $99 for the same pair? of course you would, and if they say NO? so what! the other foot locker 8 stores down will accept something lower than $99, LESSON LEARNED, SULLY..
YOUR HERO, SULLY
I practice that one myself.
btw....hello guys
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
It only works after you have the inspection done. Then you can use the fact that something may need fixed as leverage.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
It's really great to get solid advice from people who've proven something works. Makes me very confident in using it.
Thanks again,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I've been trying get this house for the last two months now and we haven't gotten anywhere. They wanted cash from the begining and i was willing to give them that. They asked for 55k and i've offered as much as 42k based on the inspections passed. Two weeks ago, i was told that they would accept my offer if i would take the property as is.
The problem is, i've only walked through the property one time, but the power and the water were turned off. So, there was no way i know if the house needs electricl and plumbing repairs. The house would appraise at 80k knowing the comps in the area. The bank is asking for 55k. It would need 15k worth of repairs plus appliances. The property has been vacant for 8 months, and they would not settle for less.
Now the bank came back and countered that they would take 42k if i would take it as is. I countered back and said that i would reduce my offer for 37k and take it as is. I also informed my agent that i've talked to the neighbors next to the house and they indicated that the house has had some plumbing problems in the past, but so far haven't heard anything. I've checked with my agent and he said that he contacted them, but so far has they haven't responded to my latest countered offer.
The key is to get the house offer accepted first, then after it is accepted you get the house inspected professionally and then ask for the reduction. It is a lot harder to get the reduction before hand. Make sure you have an out with an inspection clause. Also, if plumbing and electrical are something you want to inspect, have them turned on in your name AFTER the offer is accepted. That is what I do.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Hey everybody isn't is good to have Sully back in the mix! Yes Sully, getting a good deal is always fun-even if it is on a pair of shoes!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
you the man, i'm just coming along for the ride, "it's your WORLD, i'm just living in it", it's good to be back, cbr and friends, YOUR HERO, SULLY.
YOUR HERO, SULLY
We all did the group hug thing when Sully first came back! LOL
No, Sully, seriously it's REALLY great to have you back! DG life is just NOT THE SAME without you!
btw, I want you with me when I go shopping next. lol
(That reminds me of a horrifying shopping experience in the Dominican Republic with our male driver bargaining for me in a marketplace)
luv ya, Sully.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
rina, don't worry, sully missed you too, hugs all around, SULLY
YOUR HERO, SULLY
Getting a lower price is always good, and if you're not too greedy it would probably work most of the time. Like you say, if they don't go lower, you're where you started anyway and can still go with the accepted price.
cactusbob
I have an offer in front of me to buy a short sale property. I just want to make sure that I am doing this right. I will put "and/or assigns" next to every signature and where should I look for the contingency clause that is based on the property passing inspection first? This property is valued at $220,000 and I am offering $138,500. I am intending on assigning it if they accept my offer.
The information that you provided above was great, it is very relevant to the deal that I am submitting as we speak. Thanks for the info.!
Thanks. I always post from REAL results. I believe in teaching through experience and not from theory. You also won't catch me copying someone elses work and pasting it on this site as if it were my own. That is called plagerism and it is illegal. Thanks again.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Would this full under a concession? What if it is just your everyday walk thru with an agent. If I see obvious problems that I want corrected shoud I ask for a concession then or after I make the offer??... Thanks...Jan
Would this full under a concession? What if it is just your everyday walk thru with an agent. If I see obvious problems that I want corrected shoud I ask for a concession then or after I make the offer??... Thanks...Jan
I would make your offer based on all of the obvious things you see wrong with the house. Then after you have it inspected, if there are other things found wrong with the property (there always is) then ask for a reduction.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
All of you are too funny! Just got Dean's book yesterday, been reading posts a little over a week, and feel like I've grown/learned a year's worth of real estate knowledge/wisdom in 1/100the the time...you guys are the best...thanx!
"All great social and intellectual movements begin with a group of interested friends." CS Lewis
And we know that for those who love God, that is, for those who are called according to his purpose, all things are working together for good.
Romans 8:28 - International Standard Version (©2008)
Last question, How far can I push a realtor or the seller on reductions in price. I don't mean to nickel and dime, but to get the price down as much as possible. This will be my first deal and I need 4 more after this to get my tuition paid for by Dean. I guess you could say I am a REI, sounds great, please let me know, /THanks...Jan
try about 3 percent-justify it with reasons.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
I'll keep you in the loop and my own post will be coming if the deal goes..Jan
I'll keep you in the loop and my own post will be coming if the deal goes..Jan
Thanks. This is a great place to learn.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
You mean WHEN the deal goes thru!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
I stand corrected my friend, WHEN THE DEAL GOES THRU!! Man I love this business
Thanks for the post. Don't you just love the game?! This is a practice that I commonly use as well. And yes, indeed - it surely does work!!!!
"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]
Shiela is helping me with a short sale right now. I hope we come out winners. Troy
My bad cbrpower, I mean "when" not "if" the deal goes thru.