Once he has worked out his intended selling price, he considers the current market situation and asks himself: “What is the market willing to pay for this property in the current climate?
When the market is strong, with lots of buyers looking for properties, the developer can stand firm and achieve top prices for the properties. In fact, this is the time when developers make really good profits because they may be able to charge considerably more than the selling price they had originally calculated. On the other hand, when you are buying older properties, you are dealing with individual owners who probably bought the property many years prior. They are likely to be making a profit on their original investment and are often more negotiable as to price and terms. If you spot any defects to the property, these can help reduce your purchase price considerably. My experience has been that the cost of repairs to older properties is not nearly as great as some people may imagine and does not warrant the extra investment for a new property. I find I can obtain more properties for the same dollar investment (therefore more tenants and more cash flow) than if I invest in new pro
Related Questions
- Once he has worked out his intended selling price, he considers the current market situation and asks himself: "What is the market willing to pay for this property in the current climate?
- What is the difference between market value and selling price?
- Does the selling price always equal the fair market value?
