Ah…the real estate market in America.
Up, down, sideways. Sometimes you never know what it’s going to do.
Real estate is one commodity that a lot of investors and developers depend on to get them through the rough times in their investment strategies. Heck, how do you think Donald Trump made his billions? The problem is that unlike the stock market, real estate is tough to turn into liquid cash when you need money immediately. This may be the one large drawback when it comes to real estate investing and house flipping.
There’s only one way to sell property in a crappy market – do whatever you need to do to keep your head above water. Leverage money, relationships, people – everything. When times are tough and you NEED to offload a house, do what you can, and make the best of it. You can’t attach an emotional value to the price of the property. A lot of people do this, so make that you don’t.
No matter how much sweat equity you’ve put into the property you have to realize that it’s a business transaction for the person placing the bid. You can’t afford to run off potential bidders by getting insulted or feeling disrespected by their bids. Make a counter offer, and see what happens and never let your emotions ruin the deal. In a buyer’s market, YOU WILL get low offers. So expect them and roll with the punches.
Like me, there are lots of people who make their livings in real estate investing by buying low and selling high. In fact, that’s exactly how I’ve made it to where I am. This means that sometimes people will make an insultingly low offer the first time around to see where the seller stands. This doesn’t mean they’re bad people though. It just means that they’re trying to make a lot of money and sometimes, sellers take their (and mine) lowball offers, so why not try? So don’t take it personally if you get lowballed (because you will).
Selling property in a sluggish crap real estate market can be a disappointing and gut wrenching process but sometimes you just have to do it to keep the lights on or keep your investors happy. There’s no magic bullet or black and white answer as to what you should do when you find yourself with properties that need to be moved when the market sucks. So be wise, be savvy, and be prepared when you see the market starting to turn.
I made it through 2008 when everything went to crap and so can you if you plan ahead.