Thread: Confusion

When demand exceeds supply, prices go up - not down. Business 101.

Our market is finally starting to slow down a bit and there are less people competing for properties. However, if there is a bargain priced property that isn't always true, even in our slightly slower market. This is a fact since interest rates are still low. Certain properties priced right are possibly going to attract more than one offer. The buyer with the best offer will get that property. Those "bargains" don't always end up as much of a bargain as it might have seemed to be.

I've seen forclosed properties sell for more than they were worth. These were homes that needed repairs that sold for over-the-top dollar. Don't ask me why (many of these homes were not worth the price in my estimation).

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Originally Posted by Jiany

Hello ALL
Is anyone in an area where technology and competitiveness is at it's all time high. How and what do you do when your trying to buy a below priced property when their is so much competition?
Also I'm new, and I still do not understand how to respond directly to a question that is aimed to me, so thank you in advance for your patience.
Jiany M with www.FloridaRealtyFinder.com

Hi Jiany,
It IS pretty bleak when you are up against multiple offers, as is the case in my area. Some of the best things you can do to improve your odds of getting your offer accepted are 1) get preapproved for your loan, and get it in writing. For many sellers, it is very attractive to know that the deal will go through without a hitch. 2) Write a short personal letter to the seller telling them what you love about their house and why, who you are, why you want to live in the area and a little about your family.(Keep it positive and enthusiastic--don't whine!). This should be no more than three paragraphs, but it will make you a "real live person" to the seller--and its much harder to reject a person (with hopes and dreams) than a piece of paper. I have heard of sellers accepting lower bids in cases like this, and in fact it worked for me when I bought MY home. 3) If they are legal in your area you can make a "relative" offer, that states that you will pay $5,000 more than their highest offer. Be sure to put a cap on it, where it says, "up to $625,000" or whatever your top dollar is. That combined with a preapproved loan that is good up to that amount will go a long way to persuading the seller that you are their best bet.
Good luck!!!

When we purchased our house at below market and in a highly competitive sellers market, we did exactly what the marketing maven suggested. We were pre-approved in writing and wrote a letter to the sellers telling them why we wanted their house and how it was perfect for our new family.

It worked, and over the last 2 years, the value of the property has increased 60%

Luckily my real estate investments have been better than my stock investments

I think you doing better in real estate than stocks is precisly why so many people are buying real estate and why so many towns are in a boom.

Stocks have been sucking and traditionally real estate has always gone up, unless a whole town collapses or something like that. Even a nationwide depression doesn't hurt real estate portfolios in the long run.

Jiany, despite the hot market all across the US, you might be competing with investors who are trying to capture the pre-foreclosure market. When you see those signs: "CASH, we buy houses", "Cash for homes. Fast close", those are the people who are trying to attract pre-foreclosed owners to sell their homes to them at an often below market rate. You may want to put an ad in the classifieds section of your local paper. You might be able to generate a number of interested sellers from it.

Hey max
Thanks for the tip. Yes through foreclosure signs and advertisement such as Bank repo, and other you do get many calls, but the problem is that most of these buyers want to buy an apt that cost $800,000 for $200,000!
What is your best markting tool to attract customers, including your web site?

Hey Jiany, if someone wants to buy an $800k condo for 200, I'd say sayonara. Can't help them.

I don't really know the best way to attract quality buyers. Our fellow members SanDiegoRealEstate and Phoenix Realtor are the masters of getting great leads from the internet. I studied their sites and learned from them as much as I could. The key seems to be the good old webmaster saying "content is king". There are people in this forum who could help create and write great contents as well.

Max

Thanks MKTG. MAven
Thanks for the tips.
Unfortunatly Im not dealing with too much re sale right now. It is mostly pre construction.
Here in South Florida, Pre construction is what's booming. Im trying to get more business. What do you thing of the internet marketing compared to papaer advertising?