When an owner has an asking price for the property, find out how he or she came up with it. This question is critical because most owners are clueless when it comes to knowing how to accurately estimate their property's current market value. You will find that many owners oftentimes equate their property's value with what they paid for it, plus appreciation based on some convoluted mathematical formula that has nothing to do with reality. Once you get the answer to this question, you will pretty much know whether you are dealing with a reasonable, rational, intelligent, reality-based adult or a die-hard believer in the greater fool theory! Your next step is to show the property owner in a non-confrontational manner the verifiable sale and income data that you used to calculate your purchase price. I have found that once you prove to property owners that you have taken the time and effort to thoroughly research property values, they will realize that you are a serious and knowledgeable buyer who is not going to waste their time, and they will become more receptive to your offer.
Was this article helpful?