Buying undervalued property? Please do NOT do this.
Everyone wants to buy undervalued property. People who wants to start investing wants undervalued property. People who has been investing would want to buy undervalued property. People who does not know what they want to do with property investment also wants to buy an undervalued property. I must share this classic conversation with someone who wants to buy an undervalued property. Happy reading!
Thinking about undervalued property (still thinking…)
Mr. Wait and See: I want to buy an undervalued property!
Charles: That’s a very good idea. Where are you buying?
Mr Wait and See: Oh, I have no idea yet. Maybe that XXX area. You know that area?
Charles: Yes, that XXX area, everyone knows about it and many people are thinking of buying into that XXX area too.
Mr. Wait and See: Yea, you see, when everyone knows about it, then it will be really easy to rent out!
Identified the undervalued property already?
Charles: Maybe you are right since that XXX area should be a popular one. So, have you identified which property yet?
Mr. Wait and See: Oh, I think I want to wait and see if the market will be affected more by the uncertainties. I am sure the prices may go lower.
Charles: Oh, you have NOT identified any property yet?
Mr. Wait and See: You do not understand. I do not want to limit myself to just one or two targets. I want to be open to opportunities.
Charles: Oh, that’s good idea too. Have you went to view some properties, get a few good real estate negotiators to help you and to inform you when there are any which meets your expectations?
Mr. Wait and See: I think that can be later. You see, I do not like people who keep calling me and asking me to buy and then make me feel bad since I am waiting for the best opportunity
Charles: Please allow me to share this with you on undervalued property yeah.
Three things about undervalued properties
First, assuming you want to sell quickly and is willing to sell below the market price, the few people who may know about it first may be the family members, good friends or even neighbours. We assume, these relatives, good friends and neighbours did not buy that property.
The next person who would get the news about this undervalued property would be the real estate negotiators. Maybe three of them, maybe four of them or maybe five of them. We assume every one of these real estate negotiators did not want to buy that property despite knowing it is undervalued.
Then, the next person to buy would be the customers who have informed these real estate negotiators of what they want to buy, the price they want to buy and even the location they want to buy. The fact is, you are NOT in the first list, second list, third list or whatever list of potential buyers for this undervalued property at all.
If it’s truly undervalued, you think you can get to buy it at all? Happy waiting yeah… Cheers.
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