Profiting From Real Estate In A Downturn

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Most people invest in real estate to get them through the rough times in their investment strategies. But unlike stocks and bonds, real estate is not the most liquid of assets to turn into cash when the going gets rough and money is needed immediately. Especially in recessionary times most real estate investors face this problem when they are cash strapped and need money quickly.  This may be the one large drawback when it comes to real estate. You cannot rely solely upon real estate to get you through the financial rough patches, as real estate is a very fickle market.

There is only one way in which real estate can truly be sold in a sluggish market such as the one that is rocking the real estate world at the moment.  But this may not always a way that is ideal for investors.

But now you have decided sell of those properties, you need to adopt some fundamental principles of marketing and one of the most important one is to offer exceptional value for your product or real estate in this case.  By offering an exceptional value to consumers, you can almost always manage to sell real estate fast.

Selling short in a sluggish market is generally not the method of choice for investors. Investors often hold onto properties during the rough patches by any means possible (and ethical of course) in order to get the maximum profit they are hoping to achieve in the endeavor.  When this is not possible, make sure the property being offered and sold is the best value for the money that is currently on the market.

So how does one enhance the value of the real estate?

Play up the attributes: 

You must pitch your property against several properties on offer.  Assuming you have several properties you can do this easily.  If not then you need to do bit of a research into similar properties available in the market and play up on your properties attributes.  This could be anything from the price to its location. 

Do not Attach Emotional Values: 

While selling a property do not be emotional and play up your personal emotions about the property.  In a sluggish market you cannot attach an emotional value to the price of the property. This is simply bad business. No matter how much you have toiled to build the property, you must realize that just as it is a business transaction for you, so it is for the person placing the bid. You cannot afford to run off potential bidders by becoming insulting or feeling insulted by their bids. Make a calculated counter offer and see what happens rather than letting emotion rule the day. In a buyer's market offers will be low and price will be dictated by the buyer to an extent.

Do Not Be Insulted By The Offers: 

There are many who make a living (like most investors are attempting to do) by buying low and selling high. This means they will make an insultingly low offer the first time around to see where the seller stands. This doesn't mean they are the scum of the earth only that they are in this for the greatest possible profit. Do not take their actions or attitudes personally. They are not insulting you or the property only attempting to gain the most money in the process. Most businesses operate that way no matter what they claim.

Selling property in a sluggish market can be a disappointing and a tedious process but it is often necessary for one reason or another. Unexpected expenses arise and money is needed when it is needed. This is after all why we make these investments in the first place; to be able to handle the unexpected twists and turns that life tosses our way.

Srinivasan Gopal is an author, syndicated writer and a management professional.  Loves the internet and webmaster of www.internetbusinessprofit.info/affiliate-marketing a website where you can find answers to many of your How To's on affiliate marketing

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