| Buying a house is the best way you can
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| | owner would not sell for the right offer.
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| create immediate equity. Gaining equity
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| | Although chances of finding someone to
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| through buying a house is something which
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| | sell there house through this method
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| is very easy to do, as long as you follow
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| | aren't very high, you can find great
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| these guidelines.
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| | deals by making offers that a home owner
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| If you are seeking to buy a house under
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| | might just take.
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| discount value you must have the right
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| | If you've been to auctions or looked at
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| mindset:
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| | properties which have not sold in a while
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| "The deal of a decade comes along about
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| | and are being no longer advertised,
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| once a week"
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| | follow up on them. After so much hassle
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| - Dolf De Roos, Real estate investor.
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| | of advertising the house and no sale, the
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| Houses being sold below market value are
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| | vender may be tempted to sell at a
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| out there, its just a matter of knowing
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| | discount.
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| where to look and the buying strategies
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| | Buying strategies:
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| you use.
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| | Instead of looking for properties to
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| So where can I find houses being sold for
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| | purchase, let the properties come to you.
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| a discount?
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| | Get your own add in your local Newspaper
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| Find motivated sellers. Some examples of
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| | saying something like," Serious property
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| these sellers are people who have
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| | buyer, wants to buy houses from motivated
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| experienced death, divorce, bankruptcy,
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| | sellers quickly". You'll be surprised at
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| the less intelligent, people who have
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| | the number of calls you'll receive.
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| deadlines, and are developers.
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| | Don't reveal all your cards, as in try
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| Bankruptcy/Foreclosure:
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| | not to say why you want the property or
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| When bankrupt an individual will have the
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| | how quickly you want to buy. Never make
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| option of selling their house to a third
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| | the first offer, let the seller make it.
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| party, most likely at a cheaper price
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| | Once the seller states their price tag,
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| than market value because they need the
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| | say you want twice the discount you want
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| money fast. If an Individual is bankrupt
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| | off their price. So for example, the
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| and the bank is the creditor, the bank
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| | seller says they will sell it for
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| will take the asset (the house) and have
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| | $100,000 and you want a 5% discount, (5%
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| a foreclosure sale. You will often find a
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| | of 100,000 = 5,000. 5,000*2 =10,000)
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| cheap price there as well.
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| | offer $90,000 and counter offer up from
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| Death:
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| | there.
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| Although this may seem like profiting of
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| | Staple a check for the deposit payment to
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| someone else's misery, its not really. If
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| | your next offer. If the seller
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| the house is not included in the persons
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| | countersigns the contract and banks the
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| will, it must be sold, someone has to buy
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| | check they have accepted the deal. The
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| it. If the deeds to the property are
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| | psychological impact of this tactic is
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| transferred to someone else there is
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| | amazing. This tactic shows the seller
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| often a good chance they will not want to
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| | that you are deadly serious about
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| hold onto it and want to sell it quickly.
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| | purchasing the property quickly. It is
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| Divorce:
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| | also very tempting to just bank the check
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| When couple breaks up things often get
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| | right now even though they will be
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| nasty and they both want to be separated
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| | selling the property at a discount.
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| as soon as possible. They will often
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| | Don't put emotions into the picture. Even
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| settle on selling their house for a lower
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| | if you are purchasing a house that will
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| price but quickly.
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| | be your home, just because you think a
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| Less intelligent:
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| | bathroom looks 'adorable' you must not be
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| Sometimes people are selling properties
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| | willing to pay any more than its worth!
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| with out the help of a real estate agent
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| | This especially applies at auctions where
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| and will not know the exact value of
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| | the atmosphere makes it very hard to not
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| their house. They will usually price
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| | bid.
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| their houses too high because of
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| | Can I loose the equity that I have
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| emotional attachment to it. On the flip
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| | created:
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| side they might be ignorant of the real
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| | Yes, but not likely. If you are savvy
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| market value and sell it for less than
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| | about it you can time your purchased
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| its worth.
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| | property to gain even more equity from
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| Deadlines:
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| | appreciation of the housing market in
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| Often the best place to find deals.
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| | addition to creating immediate equity.
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| People with deadlines need to sell their
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| | Increase of real estate value by
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| property quickly. They may be going
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| | percentage in Australian Districts
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| overseas or need the money fast. Almost
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| | As we can see from the graph, housing
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| all people with deadlines will sell their
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| | prices eventually all go up due to
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| houses at a discount.
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| | increasing demand.
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| Developers:
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| | (Picture found here)
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| In some circumstances property developers
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| | The only time you can loose money is if
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| may have over extended themselves on a
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| | you sell. If you never sell you will
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| project and need to cut their loses. You
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| | never loose money. You may loose equity
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| can pick up discount houses from their
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| | when the market goes into recession, but
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| mistakes.
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| | eventually as population and demand for
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| Always ask why the house is being sold so
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| | housing increases the property you have
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| you can determine whether the seller is
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| | purchased will appreciate. If you are
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| motivated or not.
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| | looking to continuously gain equity you
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| Other sources
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| | must purchase in high capital gain areas.
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| Great places to look are under the
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| | When the market is booming try to
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| classified section in the newspaper, look
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| | purchase properties for a 5%-10%
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| for things like "Urgent" or "Heavily
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| | discount.
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| reduced". What I love about ads under the
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| | When the market is flat try to purchase
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| classified section is that real estate
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| | properties for a 10%-15% discount.
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| agents are not often involved. This is
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| | When the market is in recession try to
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| good because real estate agents will
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| | purchase properties for a 15%-30%
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| often try to push up the price of a
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| | discount.
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| property so it is above market value.
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| | Now that you've purchased your house or
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| People without real estate agents often
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| | home for a discount and gained equity,
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| do not know the true market value of
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| | you should consider using the equity
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| their property.
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| | you've created. After all its just
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| Just because there isn't a "For Sale"
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| | sitting in your home doing nothing unless
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| sign on a house does not mean the home
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| | you use it!
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