How can you tell the difference between the two? Start by asking the prospective buyer a series of simple questions about their experience, their knowledge of your neighborhood – find out if they even live and work in your city – and whether they have specific intelligence of the issues involving the purchase and sale of distressed homes.
For example: When I talk to sellers of distressed properties, and when they tell me an “investor” said prices will continue to rise and that they should refuse any “low ball” offers, I find this situation distressing for a number of reasons.
That so-called investor is often someone with no knowledge of the pricing history in my area (Dallas); in fact, that individual usually has zero information about the schools, safety, business climate and local marketplace as a whole.
And yet, I hear comments like, “So-and-so told me my house is worth at least fifty-percent or even double what you propose. Besides, the worst is over. I bet I can get a better deal.” After slowly exhaling, I have to remind these homeowners about the stubborn reality of facts.
Sure, these individuals can speculate – they can gamble – but “The House” almost always wins. Meaning: It’s safer – and smarter – to work with investors.
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