So, you are buying a new piece of real estate, and want the perfect deal available. Well, first of all, it all depends on how you’ve chosen your estate. Your decision was surely hard enough to make, but you finally did it. Now, you have to learn, how to loose NO money (in ideal circumstances) and EARN as much money as possible (in ideal circumstances).
In order to explain this, we’ll set up some “conventions”. The optimality of your estate can range between 0 and 10. The higher this value is, the more money one can earn from a little investment. Anyway, if the optimality value approaches 0, you could land up losing money on your deals. That is something no one would like, since the main idea is to earn money on the deal and to not lose money.
What would happen if you do lose money, since you have chosen not to buy the best estate available? When you lose money or rather if you have not earned any money on the deal, you wouldn’t want to lose more obviously, you’ll have to sell the property immediately. How does a seller think? A seller always wants to make things look perfect, and ask as much money as possible for what he is selling. So, literally, you have to tune up your property, and sell it for the highest possible rate.
What if you earn money out of a deal? That is what you’d like to know about! This gives way, to the following scenarios.
Scenario 1: The Price is low, but the optimality is high
This is the optimal and ideal case for everyone. You spend a little money, buy a valuable estate, then sell it, and make a sure profit, which gets you the perfect deal. When you sell something, not only you’ll have to make it good, you’ll have to talk about its negative sides. The idea is to try not to trick out your potential customer. Just imagine, someone buys your home, and thinks it is good, and is happy for some days. Sometime after that, for some reason, the floor breaks while the new owner is walking towards the bedroom.
Now that could turn into a catastrophe! Your customer comes back, he/she finds you, and wants his/her money back instantly.
Scenario 2: The Price is high and the Optimality is also high
Well, this is a fortunate case too, but not as good as the one mentioned above. The idea is no doubt the same. You just need to get the maximum profit out of your estate.
This case could also be an exception, since your house is valuable, and expensive. If you’re lucky, you could sell your estate to someone with more money thereby you earn a lot more here than in the prior scenario.
Whatever you choose, pricing and decisions should be realistic.
Scenario 3: Average Price with average optimality
Now, this can be considered kind of a standard case. You have some real estate, which wasn’t that expensive neither was cheap. Its value is unknown, but is somewhere between optimality and disaster.
At this juncture, you should probably sell it immediately. Since you have not purchased it for yourself you could be losing money in a few days, weeks or months, but for certain.
However you make your decisions, whomever you sell your property to, you should always try to make the perfect deal, which means maximal profit for you without tricking the buyer into any false promised deal. If you are able to manage this, you can surely succeed in the foreclosure business.