Real Estate Negotiation

Real Estate Negotiation

So you have a little extra cash lying around and you want to know where to put it. Greedily eyeing the floundering housing market you think there must be some foreclosed properties out there ripe for the picking. You’d be right, but it’s not so simple. Investing in distressed properties can be a lucrative option for speculators, but it’s not a field for beginners. There are more hazards and pitfalls to housing contracts and housing negotiations in the foreclosure market than in any other sector. So how do you know if and when you are ready to jump into the deep end? For your consideration:

Have you considered preforeclosures?

Preforeclosures are understood as less risky options than repossessed homes. These kinds of properties are owned by someone in very challenging financial straights. The process for purchasing a preforeclosure is no different than a normal, above water property – you’re just negotiating with a much more desperate party. Find some homes on openoffer.com that are  in preforeclosures and try out some practice negotiations before you jump into the repo abyss. OpenOffer.com provides you all the necessary tools to negotiate the best possible deal.

Do you have enough capital?

Never invest your entire nest egg in a foreclosure. Only investors who are sufficiently capitalized should even consider such a dangerous venture. The problem is that, unlike many safe forms of investment such as bonds and money market accounts, the chance that a single bad investment will wipe you out is significant. Beef up your 401(k) and buy some long term bonds before you even consider dumping thousands into a distressed property.

Have you done your research?

Nothing beats good old-fashioned knowledge when it comes to real estate. Your goal as an investor in distressed properties is to identify the real estate interests that have bottomed out and are also most likely to rebound. Understanding the fundamentals of your local economy is the only way to gain that knowledge. If you just invest blindly in repossessed homes and preforeclosures you are guaranteed to get burned.

Tags: , ,

This is filed under Foreclosures.


     Twitter It!