Home » Real Estate » Buying

6 Profit Strategies In A Buyer's Market - Part 2

Jan 10, 2008
In today's real estate market, the Buyer must at all times realize and understand that they are in control.

Here is what a Buyer's in today's real estate market must know:

1. There is no such thing as a lowball offer.
2. In today's real estate market, the Buyer has all of the power. Finally in the real estate industry, the customer is king!
3. Be absolutely merciless on the Seller.
4. You don't need to ask for any favors or concessions. You should demand them!

Don't just stand firm on your price. Unleash the flurry of body blows. You want to take this guy down and take him down hard.

Make sure you ask for concessions and closing costs, even the rafts by the pool. Get it all. If they don't like it walk. Remember there is probably an additional 5-6% of additional discounting you can get beyond the concessions.

It's called going after the listing agent's commission.
Obviously if the seller is upside down you have to work a short sale but that is your business on the back end.

Get your deal in place the way you want it. Then work the short sale. Hey listen, don't get upset with me. The Seller is not the only person I see blood trailing from. I see it and smell it from the starving listing agent.

Do your homework and see if the listing agent has made any sales or earned any money recently. Chances are slim that they have had a sale and if that is the case then you have another wounded animal to put the screws to.

Screw the "win-win" attitude. Somebody has to lose and right now it's going to be the Seller. It's time most real estate agents understand that the commission is most often unearned, it is not sacred, and despite all the workshops they have taken about defending their commission, it's not your concern.

You do not have any agreement with the Seller. They (the agent)has to submit your offer and if they have to take less in order for the sale to take place do you think the seller cares? Of course not.

You're in a "going out of business sale" and everything is on the table. I want the lowest price possible and I want my concessions.

5. Never, ever, think that the listing Agent is your friend. Get your own Buyer's agent and find your own pitbull.

Make sure you are on the same page and that your Samurai Warrior Buyer's agent understands you are not looking to take any prisoners.

Hopefully you never have to experience divorce in your lifetime, but if you do, would you want the lawyer who acquiesces to your scorned spouse's every demand or one who is ready to go toe-to-toe protecting your best interests.

So if you would fight and protect your best interests on the back end why would you not want to do so, on the front end?

6. Is This is my highest and best offer?
I love it when I get this call asking me this stupid question.

No, I wasted my time sending you an offer that I really was not serious about. I just wanted to dance with you and waste my time going back and forth on. Highest and best offer?

No it's my only offer and it expires in 24 hours!
Don't play this silly game. Houses are not selling.

Sellers and listing agents are desperate. It's not like they are getting a bunch of offers. In fact yours may be the ONLY offer they have received.

Don't try to influence me into thinking there is some form of bidding war going on. You have my offer. If there is another offer then take it!

Don't accept counteroffers. Don't even entertain them. Unless it involves minor points like closing date, after all, we're not completely unreasonable.

However if the listing agent or seller persists in trying to negotiate, withdraw your offer completely.

Wait a couple of hours and resubmit an even lower offer. Let them know that each time they counter you are going to lower your offer. Send them a message and let them know that you intend on buying a property at the price YOU are willing to pay. End of story.

Obviously, these techniques require a great deal of intestinal fortitude. Imposing your will upon someone is not easy. It's extremely profitable, but it is by no means easy.

You also will not get many of your offers accepted, however you will get some accepted and when you do get them accepted it will be on your terms and at your price.

This market is still heading south. You must have that in mind when making your offers. You do not want to buy at a price today and then find out 6 months from now that you're your purchase has been further devalued because of the continual decline in the market.

Expect the future decline, build it into your offer, along with the equity spread you desire and make your offer accordingly.

No one can tell you how far down the market is going. You just need to know it is and build a safety cushion into your offer.

Most sellers know the market is declining and every agent should know the indicators as well. All you have to do is check the history of the listing.

I have made offers on properties that the agent and seller considered low ball offers at the time. 6 months later they called back and asked if the offer was still good. I laugh when I get those calls. I simply ask are you kidding.

That was the price 6 months ago...I re-assess and submit another offer, which in this market is far less than the offer they received months ago.

Am I glad they never took my original offer!
I have learned and I impart that knowledge upon you.
Build in a declining cushion factor in your offer.

That's why it is important to understand that there is no such thing as a low ball offer in this market.
About the Author
Barry Cunningham is one half of the B&B Crew who are the hosts of Real Estate Radio USA. Real Estate Radio USA is an opinionated, provocative, informative and entertaining talk radio show about all that is real estate.

Real Estate Radio is broadcast daily live at 4PM-6PM. Tune in today! We also invite you to take a look at our "blogzine".
Please Rate:
(Average: Not rated)
Views: 246
Print Email Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources