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What’s the right amount to pay?

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Transcript

Now when you’re thinking of buying property, there’s so many different styles of agents’ selling methods. Now rangers, offers above, negotiable, contact agent, auction. The list goes on.

What we’ve started to see in some of the markets that we’ve been looking at is a lot of properties coming up in ranges. I’ll give you an example 339 to 359 or 400 to 450 or 400 to 420. Now what this does two emotionally is this actually makes you think “Hey 339 to 359 there’s an opportunity for me to potentially get this at 3:39 and maybe if I come in little bit low and I get it through 20” Now some cases that may be may be true. But other cases it just may not be the case. and this is where a deep dive needs to get under into play to really go.

What’s the right amount to pay. So when you’re thinking about it comparable sales, comparable listings, Interior finishes, land size, exterior finishes, Street pockets, neighborhood pockets These sorts of things will help you understand it. Now in some states or in some locations this can be referred to as under quoting if it’s actually not in line, but because there’s a bit of a range in play or because there’s actually this one little sale or too little sales on a statement of information that an agent can place and show that “look there was this one place here that sold for 320 330” that allows them to place their range there that might make that range appropriate for them to put down.

Although it may not be very true and correct, if you really think about the property itself. So what that means is then a lot of people start turning up and a lot of people start coming to these Open Homes and maybe 20 30 40 people come up and I’ve seen property examples like this. And then what happens at that point is someone goes ”Well, there’s a lot of people around me. Maybe now I should really start to think about the offer. I put and then you start seeing people have multiple offers and then you start seeing multiple tech contractor sells away offer forms.

All of a sudden what really isn’t going to be at 330 or 339 starts having a lot of hype and a lot of attention place to it and it starts getting to the 350s 360 maybe. So when you’re thinking of the scenario when we reviewed this exact example that 350s and these were where we would actually appraise the property anyway, So we weren’t caught in this height. We knew that that’s where was going to go and we started focusing on how where do we play in that range.

Now what can sometimes happen is that a lot of people can just fly off because they start to go ”Well, this is hitting the top now and I’m just not able to compete” and it actually is better then for those people who recognize that value immediately and took the emotion away from it, but for other people that actually can make them get intensely involved in a bidding war because they’re in it rather than away from it. Seeing it that price range of 360 up front. They sought it 339 and so they kind of in the game and this sort of that starts to transpire and multiple offers multiple best and finals and emotion gets in the way.

So when you’re really coming back to it don’t think arranged means you have to go to the bottom or you if you get a under bottom, it’s a good deal. Sometimes you can actually be the top of the range and you just paying which should have gone for and it’s not really the top of the range, terms of you’re paying more you’re actually just paying that fair value and this is where understanding value is actually far better than just negotiating to get a discount because it’s really about knowing that value to what’s appropriate and that could be the difference between you securing a property you constantly missing out and partially a big reason why many people use our services as buyers agents to really understand what that True Value looks like and that’s actually going to be the big key of helping you on your journey of looking to invest in property.

That’s it from us here at InvestorKit the experts in Wealth Creation helping you take action.