Voluntary sale?Unsold?What is the point to purchase a property for real estate investment as cheaply as possible?

If you can keep the expensive property costs low, the rate of return will increase, and the possibility of succeeding in real estate investment will also increase.Unlike stocks and securities, there are no properties with exactly the same conditions in real estate, and there are differences not only in size, appearance, and location, but also in the scenery and damage of each room.

The conditions are different for each property, and the owner's situation is different, so if you do well, you may be able to get a good property cheaper than the market price.

This time, I would like to tell you what kind of perspective you need to choose in order to keep the purchase of the property, which is the largest amount, as cheap as possible.

Negotiated transactions for real estate

Real estate investment is a transaction in which the seller and the buyer determine the price and conditions between the parties, so the transaction can be completed as much as possible depending on the agreement of both parties.The seller often asks for a slightly higher price based on the appraised price presented by the real estate company, and the real estate company also strives to complete the transaction at the desired price as much as possible.

However, if the desired price is clearly far from the market price, it is often difficult to make a deal.It doesn't matter if it sells at any time, and even if there is no problem if you wait for years, there are many cases where the seller wants to get rid of it as soon as possible due to the circumstances of the seller, and that may be the goal of the buyer.

Real estate investment depends on negotiation

It is common practice for buyers to bargain for price reductions in real estate purchases.However, since the other party is also a human being, it is counterproductive to negotiate a price cut emotionally.Even if you ask me to reduce the price by 10% for no reason, I feel like I'm listening to the buyer's selfishness.

Since there is no concept of a list price for a property, research market prices, residual values, repair costs, route prices, etc., in the neighborhood, and create concrete standards before negotiating.I would like to repair this place, the road is worse than the neighborhood, so I will show the grounds.In that case, it is essential to have a high level of knowledge that surpasses the opponent.Real estate transactions are negotiated transactions, and it is a world where it is better to be good at negotiations so that you can convince the other party.

You will be able to see the seller's situation during the negotiations, so show respect and try to negotiate within a reasonable range to make the transaction pleasant for both parties.

Points for buying a property for real estate investment cheaply

Assess the status of the owner

In many cases, in order to earn a stable rental income, I think that they are fully motivated to manage the rental property.However, there are also owners who are not very enthusiastic about inherited properties or for some reason and happen to be in a situation where they are renting.

Of course, it is often rough and neglected in maintenance, and even if it is time to sell it, the purchase by a real estate company tends to be cheaper because of the addition of renovation, repair costs, and advertising costs for attracting customers. You may also be looking forRestoring a dilapidated property requires a lot of knowledge and energy, but if you succeed, you can get a large yield, so it can be said that it is the real pleasure of real estate investment.

If the other party is also a real estate investor and is familiar with the property, it may be difficult to negotiate a bold discount.

Think about why you want to sell

Each owner has a different situation, so if you need funds for some reason to move to a new property, you may want cash immediately, even if it is a little lower than the market price.

If there is a residual value, you can see the lower limit of the price reduction

If the seller has not paid off the property investment loan, the residual value is the lower limit of the markdown.Also, if you buy and sell in the form of outstanding debt, the mortgage will not be released, so there will be no loan for the buyer.Even if you can buy it with cash, there is a risk that financial institutions such as the seller's bank will auction it if the seller delays repayment.

long on sale

If you are on sale for a long time, the circumstances of the real estate company will overlap.The seller will ask the real estate company to act as an intermediary.As a real estate company, there is a desire to close the contract as soon as possible, such as the possibility of switching from a full-time brokerage contract to a general brokerage contract.

In the brokerage contract, you decide whether you can contract with multiple real estate companies at the same time and how many months the contract period is, but there are three types of brokerage contracts: general brokerage contracts, exclusive brokerage contracts, and exclusive brokerage contracts.

A general brokerage contract allows you to ask multiple real estate companies to act as intermediaries, and it seems that the real estate information is available in many media and the closing rate seems to increase, but even if the real estate company tries hard to attract customers, it will not be decided. Other properties may be prioritized because it will be wasted if you do.In addition, it is a disadvantage that it is not necessary to register with REINS (a database that collects information on real estate properties nationwide) for general brokerage contracts.

An exclusive mediation contract differs from a general mediation contract in that it entrusts you to only one company.Reinz registration is compulsory, within 1 days from the day after the conclusion of the brokerage contract, the obligation to report the sales status to the client at least once every 7 days, and the expiration date of the brokerage contract is 14 months.As a real estate company, we often do our best to promote sales because there is no fear of other decisions and we do not waste advertising expenses, and we can obtain brokerage commissions on both the buyer and seller sides (brokerage on both sides). As a seller, you can rest assured that you have to report at least once.The disadvantage of a full-time brokerage contract is that it depends on the ability of the company to request.

An exclusive full-time brokerage contract is almost the same as a full-time brokerage contract, but the act of finding a buyer by yourself and making a contract is prohibited, and you will have to contract with a real estate company as an intermediary.In addition, it is stipulated that the reporting obligation to the client is at least once every 5 days within 7 days from the conclusion of the brokerage contract.

Got a bargain?About voluntary sale property

Voluntary sale is a method of selling a property by a method other than an auction when the loan cannot be repaid and the remaining debt cannot be paid off at the time of sale. Masu.

At auctions, there are many cases where a bid is made at a lower price than the market price, and there are many outstanding bonds left, so you can expect to buy and sell at a price close to the market price.By aiming for this voluntary sale property, you may get it 10 to 20% cheaper than the market price.In addition, unlike auctions, it is possible to check the condition of the property, and if the mortgage has been canceled, it is easier to obtain a loan from a bank or other financial institution.

But it's not all good.If there are overdue or non-payment of management fees and reserve funds for repairs, the defect warranty liability will be exempted, so you may be obliged to repair hidden defects, so you need to have the knowledge to identify a good property.Therefore, voluntary sale properties are recommended for seasoned investors who are familiar with them.

About unsold properties that can be bought in real estate investment

Sometimes there are properties that have been posted on real estate information sites for nearly a year.Failure to sell is usually due to the price being set too high, and the seller may not be in a rush to say that if it doesn't sell at that price, it doesn't matter.In this case, unless the seller suddenly changes his mind, the chances of the limit price passing are slim.

On the other hand, there are properties that you want to sell but cannot sell because they are not well maintained and leave a bad impression.Even though it's not a bad property, there are cases where the real estate company's sales power is low (some cases are postponed in the general brokerage contract), so it may not be possible to close the deal, so I think it's good to take the plunge and ask for details.

However, the surrounding environment is bad and the building is old, so there are cases where you should not get involved in the first place, so this is also for veteran investors who can determine the good and bad.

Related article:Seemingly profitable arbitrary sale property.Points to keep in mind to avoid failure

Give the seller peace of mind by getting the loan pre-approved

Normally, if the loan does not pass, the contract is signed with a "loan special clause" that allows you to withdraw the blank sheet, but even if an applicant appears with the initial amount, it will be nothing if the loan does not pass.If you go through the pre-screening, you can be sure that you will be able to sign a contract even if the price is slightly discounted.Also, as a real estate company, it can be said that there are many cases where they are aggressive as buyers with high credit.

Summary

In order to obtain even a little cheaper like this, it is important to understand the relationship between the seller and the real estate company and negotiate while assessing the timing, acquire deeper knowledge than the seller and negotiate so that the other party can be convinced. is.In addition, respect the seller and try to make a deal that both parties can agree on, such as not giving unreasonable discounts.

At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.

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