I called his bank and learned that he had applied for a loan, but it wasn’t approved yet, maybe in another week or two. I put his application on hold. If I had signed a contract with him during this time, I would have taken the property off the market for 30 to 40 days until his approval came through—if it came through. I didn’t want to waste time.
I had 14 duplexes to sell in Nashville, so I ran an ad in the Sunday paper and got 37 responses. The first caller said he wanted to buy all 14 duplexes. I asked if he’d actually seen them. He said, “Absolutely. I know where they are.
To get a good deal and arrive at a price you’re willing pay, be sure to ask for the seller’s lowest price at least three times. Say something like, “I don’t like to negotiate, I’m not good at it, I know you don’t either—so without negotiating or haggling, what’s the absolute least you’d take and be okay?” “Now, let me ask you one other question; I don’t like to negotiate.
For instance, an active investor in a specific neighborhood might confirm that houses do comp out at those prices, but that the market is slow. Or an agent who sells a lot of houses in that area might say that even though they comp out at $300,000, people are only paying $275,000.
- What’s it going to sell for? (Not what it’s appraised for, but what it’s going to sell for today.)
- What will repairs cost?
- What can I buy it for?
McGowan picked the right property. He had the expertise and was willing to spend the time. He had something else, something I consider more important than anything else: McGowan could see past the wreck that he had just bought to the house it could become. Click here to read more.. »
No matter how good something seems to be, it never is. If you want to buy a fixer-upper, that should be a conscious decision. You need to take a number of factors into consideration before you make what can often be a painful leap. You should first decide whether the neighborhood and the house are both worth any money you spend, whether it is a few thousand dollars or a few hundred thousand dollars. Click here to read more.. »