Profiting From Real Estate In A Downturn
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.
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