Money is Made When You Buy Not Sell Real Estate

By: Toby Munk

Ever had somebody tell you that he just made so much money selling some real estate? All lies. Fact is, that person did not make the money selling his real estate holding, chances are buying in the first place generated the profits.

Let look closer at a sale. One has to assume that the market as a whole is well informed and has professional assistance in form of real estate professionals. The best deals in the market tend to sell first and overpriced offerings will not sell until the market has moved up. A seller therefore can expect to obtain market value for his property. It is very unlikely that by some fluke he will stumble upon a buyer willing to overpay for a property.

Now lets have a closer look at the buying process. When buying you are negotiating with one individual, the seller. He might or might not be completely informed about the market value of his property. The seller might be facing special circumstances that might make him more motivated to sell at a below market value. You might be in a position to close quickly and therefore a motivated seller might be willing to come down on his price. When buying property you are competing with the market for a property but you can always beat the market by being first to learn about a new listing.

It is during the buying process that you can find the pearls amongst the plethora of offerings. Make lots of offers on property where you see potential. Find the seller that is most motivated. Do not get hung up on a particular property just because you have fallen in love with it. Once you found the person and the property that meet all your criteria negotiate hard and make the deal happen.

It is at the time of buying when you set yourself up for future profits. But the profit potential that you control is 100% related to your buying decision. Not only in terms of the price you paid but also in regards to all other variable factors like location, desirability of structure, condition of the dwelling, rental potential and so on.

So when buying your next property keep in mind that it is the key to your success. Selling just represents the completion of a wise buying decision. You can expect to sell a property at market rates, but you can find and buy property at below market rates.

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