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Playing On The Competitive Real Estate Market

Playing On The Competitive Real Estate Market

By on May 3, 2016 in Real Market |

Some people think that only rich people earn money on real estate market, which is a false conviction people have made.  Every person that has at least one property they are not living in can trade and if they are smart enough earn on real estate market.  Real estate market can become quite a competitive place, and there are some signs that clearly show the existence of high competitiveness on the market.
When a buyer comes with cash it means that the market is highly competitive.  On competitive market many buyers will come with cash offers for the property, and in most for the cases the seller will accept a cash offer over the loan.  People with cash are able to give smaller offers for the property, and sellers are willing to take less money, because that money comes instantly rather than over long period of time which is a case with loans.

If you have to enter in bidding war over a real estate then it means that the price will go up and that the competition is fierce. Properties that have good or excellent condition and they happen to be on a good location will not be sold on their listing price on the competitive market.  If you are not  careful you might end up with a property on which you can’t earn money because you paid too much to buy it and need to

Price of the property in a city can skyrocket if that city becomes a  desirable place to live. If a big industry moves to a city which was average city before that, the price of property in that city will increase and vice versa.

To succeed on this market you have to follow the trends and migration of workers and all other elements that might affect the price of real estate;

Competition in a real estate business can be fierce as hell. If you see an escalation clause in a bid on the property, you are a long way from buying that property. You can stumble on competition that is willing to push the price to the maximum where the buyer has no chance to earn any money on that property.
Being a cunning person is a desirable thing on the real estate market. If there are several bidders for a property you want, bidding war may negate all profit from that property.

So, it is good to have an agent that will go and talk with the owner and find out what are his wishes. You can also personally contact the buyer and make up some story behind your bidding that will affect the owner.

In this way you might buy that property for less money than other bidders were willing to pay.

Real estate market, as many other markets, is not a place where fair people flourish. If you play fair you will end up on street, and that is a hard fact. To be a successful real estate trader you have to use all possible legal means to get a hold on lucrative property and to turn in around for as much profit as you can.


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