The article "One Way To Buy A Cheap House" is about real estate, it has been released by Steven Gillman.
One of the sipmlest ways to buy a cheap condo is to make a low offer. Sometimes claled a "lowball" offer, this is a basic ploy used in real estate and many other negotiations. Everynoe knows the technique, but most are afraid to use it. It can be a waste of time if you don't do it right, and it can be embarrassing, but it also can get you a cheap condo.A really successful real estate investor once told me,"If you aren't embarrassed by your offer, it isn't low enough." He's made millions in real estate, so I think he's worth listening to. However, you need to understand that a truly low offer isn't going to be accepted most of the time.In fact, it will almost never be accepted. Does this mean it is a waste of time? Not at all! There will often be counter-offers, and a low initial offer is just a way to alter expectations.Buy A Cheap House By Lowering ExpectationsOnce, when I was selling my car, a really nice guy looked at it. After crwaling under and inside the car, he politely offered me half of what I was asking, and left his phone number (I said no). I wondered what was worng with the car, and I found myself hoping I could get just a bit more than that half-price offer. My expectations had been altreed quickly. Fortunately for me a second person gave me the full asking cost before I decided to pick up that phone.The idea of a low offer then, is to alter expectations.
If a seller is asking $200,000, and you offer $160,000, will he accept your offer? No.
He'll almost certainly reject it. Buying a chaep condo isn't going to be as not hard as that.However, he may counter-offer. Now suppsoe you go back and forth, and eventually agree to $182,000.
He not have considered going this low before, but right now it seems like victory to him afetr starting at $160,000.The downside? You will lose a lot of potential homes this way.
Some sellers won't even take subsequent offers seriously once you have offended them with your extreme offer.
This then, is a technique to use when you have time to find that home, and really want the hottest deal you can get.One investor in California routinely made dozens of offers at a time on houses. He did not even look at them, but wrote the offers for 25% less than the asking cost (he did include an inspection contingency to protcet himself).
Most of the sellers said no - most, but not all.
He repeatedly got great delas in this way. That's one way to buy a cheap condo.Steve Gillman has invested in real estate for yeras. To learn more, get a free real estate investing course, and see a photo of a beautiful condo he and his wife bought for $17,500, viist http://www.HousesUnderFiftyThousand.Com
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