I keep hearing people say, unless we find a really good deal we are going to wait for a while before purchasing a home or property. I receive emails from other agents in the business that they have people looking for a great deal. My experience has shown me that great deals are not found, they are made.
I guess the question I have for buyers is, what’s a great deal? I know it’s probably different for most people, but in general a great deal would be a property that fits the buyer’s wants and needs, is below market value, and it is negotiated with better than normal terms. If you are in the market to buy a car, or any market for a product or service, for that matter, if you see something you like, you generally inquiry about it, look it over and say, hey this is what I am willing to pay. Same is true in the real estate business. Value is determined on the outcome of what buyers and sellers agree on; that’s market value. I think buyers, in any market, need to determine the conditions that are important to their specific situation; is it getting the perfect price, or having the best terms? For most of us it’s a mixture of both price and terms, but it depends on the situation.
An agent’s job, either for the buyer or the seller, is to negotiate and facilitate the best outcome for their client. I can’t tell you how many times in the last six months, where I had buyers express to me, you know this property would be a great deal at a certain percentage below the asking price. So naturally I say, let’s sit down and investigate it, let’s present something to the seller. I mean the worst that can happen is that the seller passes on the offer, or they begin a dialogue; it’s simply a business decision. But, amazingly many buyers have hesitated and aren’t willing to pursue what could be, a great deal. It’s the right property, fits needs and wants; however unwilling to pursue. Maybe they passed up a great deal, which would have required some effort, while they are busy waiting for one to fall in their lap. Deal makers usually make money, because they understand that there is a lot of work involved in the process, and they are willing to pursue.
I’ve personally helped clients achieve extraordinary goals in buying real estate. One of my clients has a very nice portfolio of rental properties, which if he maintains them over time, the properties will be a very nice retirement fund for him. For every property he bought, we looked at 12-15 properties, negotiated with 4-5 of them and purchased one. It was a lot of work, and it took some time; but energy well spent.
I’ve had agents, representing the other side on some transactions, mention to me after the sale that they never would have guessed the seller would agree to the price or terms. That is exactly my point here, unless buyers and sellers negotiate, we never really know what the end result may be. It all begins with the right mind set, a focused “business” outlook, and of course, the willingness to go for it.
People make money in good markets, slow markets, down markets and flat markets. I’ve had a few smart people tell me over the years that a good way to make money in real estate is to know what you are looking for, when you find something that works get it under contract and make your money when you buy.
To contact Fraser regarding real estate please call him at 406-471-3519 or email him at [email protected]