| One of the simplest ways to buy a cheap house is | | | | for me another person gave me the full asking price |
| to make a low offer. Sometimes called a "lowball" | | | | before I decided to pick up that phone. |
| offer, this is a basic ploy used in real estate and | | | | The idea of a low offer then, is to alter expectations. |
| many other negotiations. Everyone knows the | | | | If a seller is asking $200,000, and you offer $160,000, |
| technique, but most are afraid to use it. It can be a | | | | will he accept your offer? No. He'll almost certainly |
| waste of time if you don't do it right, and it can be | | | | reject it. Buying a cheap house isn't going to be as |
| embarrassing, but it also can get you a cheap house. | | | | easy as that. |
| A very successful real estate investor once told | | | | However, he may counter-offer. Now suppose you |
| me,"If you aren't embarrassed by your offer, it isn't | | | | go back and forth, and eventually agree to $182,000. |
| low enough." He's made millions in real estate, so I | | | | He not have considered going this low before, but |
| think he's worth listening to. However, you need to | | | | now it seems like victory to him after starting at |
| understand that a truly low offer isn't going to be | | | | $160,000. |
| accepted most of the time. | | | | The downside? You will lose a lot of potential homes |
| In fact, it will almost never be accepted. Does this | | | | this way. Some sellers won't even take subsequent |
| mean it is a waste of time? Not at all! There will | | | | offers seriously once you have offended them with |
| often be counter-offers, and a low initial offer is just | | | | your extreme offer. This then, is a technique to use |
| a way to alter expectations. | | | | when you have time to find that home, and really |
| Buy A Cheap House By Lowering Expectations | | | | want the best deal you can get. |
| Once, when I was selling my car, a really nice guy | | | | One investor in California routinely made dozens of |
| looked at it. After crawling under and inside the car, | | | | offers at a time on houses. He didn't even look at |
| he politely offered me half of what I was asking, and | | | | them, but wrote the offers for 25% less than the |
| left his phone number (I said no). I wondered what | | | | asking price (he did include an inspection contingency |
| was wrong with the car, and I found myself hoping I | | | | to protect himself). Most of the sellers said no - |
| could get just a bit more than that half-price offer. | | | | most, but not all. He repeatedly got great deals in this |
| My expectations had been altered quickly. Fortunately | | | | way. That's one way to buy a cheap house. |