Saturday, January 19, 2008

Lost. $40,000 in Equity. Reward Offered

As an investor's agent I always get confused when a client finds a property, inspects it for repair costs, runs the numbers and then waits for the list price to drop before they submit an offer.

Here's my question: Why leave the property on the market for other people to steal your target purchase when you know what you can buy it for and how much you'll make from the purchase. at the right price? You have no idea what they will or will not accept.

Examples of When Buyers Aren't Afraid to Ask:

1. I had a listing that had an appraised price of $85k. The sellers listed it at $79k. They accepted an offer of $63k after only 21 days on the market and also offered to do update work prior to closing.

2. A HUD property that had been on the market for almost a year. Listed at $250k, then $242k, $235k...you get the point.

My buyer placed a bid each day for $140k (the on line auction had a daily closing). We did this for about 30 days. There was no winning bid.

The price was reduced again, this time to $195k.

I asked my clients if they wanted to place the same bid.

READ CLOSELY!!!

They did not want to submit a bid, as they had been, at $140k.

The next day the auction closed with the winning bid at $98,000.

My clients were outraged that they lost the opportunity to purchase the property. Not to mention that up and to that point they were offering over $40,000 more than the winning bid.

Please learn from these experiences...

PUT IN AN OFFER!!!

Leave a comment about any experiences you have had or heard of...good or bad.

Sunday, January 6, 2008

3 Tips to Start the New Year Off Right

I'm starting from the assumption that you (the reader) are interested in making your life experience in 2008 different (dare I say, better) than 2007.

I've come across some great podcasts that have been really inspirational. Check out these links...after you've read my tips, of course.

My Thought Coach, Brian Tracey Podcasts, Hypnosis w/ Michael White and the 4-hour Work Week

Tip 1: Reflect - What did you do last year? (Or...what did you avoid?)

  • I avoided going to the gym during the day because I would have to use the public shower. (That causes me unreasonable anxiety.)
  • I did not add to my property inventory because I was reluctant to take a serious look at my finances.
  • (On a positive note) I almost doubled my business production.
  • I reviewed, eliminated and created new successful marketing campaigns.
  • I enjoyed multiple wonderful vacations.
Tip 2: Brainstorm - What gave you the most enjoyment in 2007?
  • I ran my first half-marathon.
  • I was increased my flexibility. (I touched my toes for the first time in over 5 years.)
  • I read some wonderful business/educational books.
  • I automated almost all of my duties as a Realtor.
  • I took on a part-time assistant.
  • I made some new friendships.
  • I helped all my clients through their real estate transactions in a volatile market.
Tip 3: Decide - Pick some things you want to do/be/have. (Use the previous steps to get some ideas.)
  • Because it was an amazing rush - I am going to run 2 more half-marathons in 2008.
  • Because I feel a sense of accomplishment and have more energy - I am going to continue limiting my intake of fast food and microwave meals and prepare meals at home 5 days/week.
  • Because I believe in myself - I am going to increase my property holdings according to my business plan.
These are just some things that I plan to improve in this new year. I hope you make some amazing new accomplishments in 2008.

Please leave some comments on what you plan to do so we can encourage you along the way! (And, let me know what you think about the links I posted.)

Here's to a wonderful 2008!

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