Real Estate Game-Changer: Ask the Seller's Price First
Jan 03, 2024
Photo by Kindel Media
When you immerse yourself in the realm of real estate and engage in numerous deals, a stroke of luck often accompanies you. The more deals you encounter, the sharper your eye becomes for spotting opportunities. As this journey progresses, you begin to discern the right questions to ask and how to flip properties with maximum cost-efficiency.
The Price You Can't Afford to Miss
In the game of real estate, one crucial step can potentially save you thousands: obtaining the seller's asking price before they engage a realtor. Timing is key here, as their asking price pre-realtor consultation might present a considerable discount compared to what it might be later.
Knowing When to Strike: A Case in Point
For instance, consider a property valued at $250,000 post-renovation. Despite fire damage and a single bid suggesting $150,000 for repairs, the seller hadn't approached a realtor when I inquired about their asking price. Surprisingly, it stood at a mere $65,000.
Unveiling the Hidden Opportunity
Upon inspecting the property, I discovered that the damage was largely cosmetic, with no structural issues or essential utility repairs required. By leveraging trusted contractors known for quality work at reasonable prices, the renovation costs were efficiently brought down to approximately $80,000.
Maximizing Profit Through Strategic Negotiation
Had I made an offer upfront, I would have been willing to pay up to $110,000. Yet, by securing the property at the seller's initial asking price of $65,000, the deal paved the way for a profit of approximately $90,000 after renovations.
The Crucial Takeaway: Always Inquire First
The lesson learned from this experience is invaluable: consistently ask sellers for their asking price before any realtor involvement. This strategic move can unlock hidden potentials and significantly impact the profitability of your deals.
Engaging the real estate market with this approach can be a game-changer, enabling you to seize lucrative opportunities that might otherwise slip away.
