What can you get it for Real Estate? (2)

When sellers are motivated to move a property worth $100,000, and it
does not need any repairs, they may say, "We'll let you have it for
$70,000." (This is about 30% below market value.) Rule of thumb: A
good deal should be at least 20% below market. Would that be a good
deal? Yes.

Now you can negotiate an even better deal and get a signed contract.
That's where you make money in real estate. If you don't negotiate,
you may potentially leave a lot of money on the table.

Every property's value is in the eyes of its beholder. If you own a
lot of real estate and you are being sued, you might make a case that
your property is not worth much and needs repairs. On the other hand,
if you go to the bank to borrow money against the property, you'll
want it appraised as high as possible using the highest comparable
sales

And when the tax assessor calls to figure out your new taxes for next
year, you'll say the rents are low, the buildings need work, and so
on. Since property has different value depending on who is looking at
it, make sure you talk to professionals active in the market who tell
you honestly what people are paying for properties today.

You can also determine market value by attracting an offer by running
a newspaper ad that includes details of the property. If the phone
rings, people want what you have to offer. Likewise, if you want to
see how much rent should be, run a "For Rent" ad and see if anybody
calls. If no one calls, you don't have much of a market.

Now do your analysis

Now that you have negotiated a good price and put it under contract
with a contingency clause, then do your analysis. Beginners tend to
analyze for six weeks, but by the time they find out the age of the
water heater, the condition of the roof shingles, and the opinions of
neighbors, their opportunity has disappeared.

Instead, do a quick survey to see if it is a good deal, document
everything, put your offer in with a contingency, then do your compete
analysis. If you experience analysis paralysis, you'll lose a lot of
deals. That's why it's important to gather your information well and
act boldly.