Coaching Corner Tip #3

Never go see a property before making an offer!

A lot of people actually will not make an offer to purchase on the property until they have seen the property itself. Again I believe that this is a mistake that new investors and sometimes seasoned investors are doing.

Why go and see a property one of minutes from home or five hours from home without you knowing if there is the possibility of an agreement of purchase and sale?

Why would you go see a property and then start the negotiation to find out that the vendor is non negotiable, that does not want to help on financing, and that there is no possibility to make a good deal.

If you have seen the property before making the offer how could you go back to the vendor and expect him or her to give you a rebate based on the condition of the property that you now see after you made a financial offer to purchase. Here’s an example; if you have not seen the property and made an offer to purchase to the vendor for let’s say, $400,000 and as you do your due diligence and visit the property by yourself or with a property inspector, wouldn’t it be a great time for you to come back to the vendor and request from him a reduction in price based on the facts that, the appliances that you seen are all yellow, the windows are single pane, the roof is in dire straits, every apartment needs a complete paint and carpet must be changed.

Do you see that having seen the property prior to making the offer leaves you in a position that is less favorable then going back to the vendor after you’ve seen the property and the transaction or to deal was made.

Some of you will say how could you make an offer to purchase on a property that you have not seen, very simply, you make an offer based on numbers naught on emotional and visual reasoning.

Your coach Marc.

Posted in Real Estate Blog.

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