Article Surfing Archive

Over coffee with a friend she mentioned that her parents are planning to move out to the country to retire and will be selling their home in the city. I told her that when they were ready to let me know as I would be interested to buy it. She said that they had originally low-balled what they were going ask for it as the bank appraisal came in almost $30,000 higher than their figure. I told her to consider it sold and took another sip of my coffee. She looked at me quizzically and asked why on earth I would want to buy it for full price.
To an unsophisticated investor is does seem like a stupid thing to do. However, when you are into creative real estate investing it actually makes a lot of sense. You can find out more by going to www.albertarein.com .

Her parents were unsure of what to do or how to do it when it came to selling their home. They didn't want to hold it as a revenue property as they needed the sale proceeds to fund the new home they were building. Like so many people they were hesitant to commit to a realtor because they have to put their faith into that person not to mention the hefty fee they would pay. Now don't get me wrong, I often use a realtor and have nothing against them making a living, but it can be a scary process if you are unfamiliar with it. They didn't want to put their home up for sale too quickly as they needed somewhere to stay for another four months while their new home is finished. On the other hand, if they waited too long they might be left paying two mortgages until their city home sells. It can lead to 'analysis paralysis', which can be just a detrimental as leaping without looking.

I assured her that everyone would win if we went ahead because we would each walk away with what we wanted most. In a red-hot real estate market like the one I live in in Edmonton, Alberta, it is a myth to think that you have to get a reduced price on property to make it a good deal. I explained to my friend that if her parents sell their home to me now, even at full price, I would see an appreciation by this time next year, which will have made it worth my while. On the other hand, if they sell to me now they get their sale proceeds right away which reduces their anxiety about finances. As well, they can continue to live in their present home until they are ready to move out. With construction trades going wild there would be a definite possibility of their possession date getting moved, even a number of times. This way they could stay as long as they want with no pressure and I have great tenants who love my new property and will care for it while they live there. There is really no down side to this real estate sale and everyone literally gets what they want out of it.

Speaking of emotion, her mother practically danced for joy when she told her that they could sell the home to me now and stay in it as long as they want to while their new home is being built. I can choose to rent it to them while they stay or take their rent off of the purchase price but either way it's a win/win and we all walk away with what we want.

They are happy because they get to stay in their home no matter how long their new home takes and I am happy because I can buy that home at today's price and watch it appreciate while they take care of it after the sale. We all win and everyone is happy. Who could ask for anything more?