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Zhi Finance » Selling real estate in a depressed market

Selling real estate in a depressed market

Real estate is a commodity that many people rely on to get them through tough times in their investment strategies. The problem is that, unlike stocks and bonds, real estate is not the most liquid asset, and it turns into cash when things go bad and money is needed immediately. This can be a big drawback when it comes to real estate. You can’t rely on real estate alone to help you get through financial difficulties because real estate is a very fickle market.

There is only one way to really sell real estate in a depressed market, such as the one that is currently rocking the real estate world, and that is not always the ideal way for investors. However, by offering exceptional value to consumers, you can almost always manage to sell real estate. So far, this has not been the preferred method for investors. Investors are often encouraged to hold on to properties through any means possible (and certainly ethical) in the midst of bumps in the road to get the maximum profit they can hope to make in this endeavor. When this is not possible, make sure that the property being offered and sold is the best value on the market today.

Play up the properties of any given property by offering several properties for sale at once (assuming you own more than one). More importantly, offer different types of properties rather than one style of property. If you own several rentals, several vacation homes, timeshares, and perhaps a corporate office building or two, put one of each on the market and see which sells faster.

Another thing that must be considered in a down market is that you can’t attach a sentimental value to the price of a property. That’s just bad business. No matter how much sweat, tears and blood you put into a property, you must realize that just as it is a business deal for you, so it is for the person making the offer. You can’t be humiliated by a potential bidder’s offer, or feel humiliated and run away. Make a counter-offer and see what happens, rather than letting emotions rule the day. In a buyer’s market, there will be low bids.

There are many people who make a living by buying low and selling high (just like most investors try to do). This means they will make an unpleasantly low bid on the first offer to see where the seller stands. This doesn’t mean they are the scum of the earth, it just means they are out to make the biggest profit possible. Don’t take their behavior or attitude personally. They are not insulting you or the property, they are just trying to get the most out of the process. That’s how most businesses operate, no matter what they claim.

Selling a property in a down market can be a frustrating and painful process, but it is often necessary for one reason or another. Unexpected expenses come up and money is needed when money is needed. That is, after all, why we make these investments in the first place, so that we can handle the unexpected twists and turns that life throws at us.