The Accidental Investor Today's Real Estate Speculator The Accidental Investor Today's Real Estate Speculator. Are you a real estate speculator? Who are the majority of today's real estate speculators? How can you be an accidental investor/speculator? It may surprise you! The last thing on your mind is investing in real estate. You've convinced yourself can't afford the house you bought four years ago. Or you've lost you job. Your youngest needs his tonsils out, your 16 year was just added to your car insurance, and your oldest needs a prom dress and starts collage in 7 months!
You don't want to invest in real estate! You want to divest! You want to sell your house! Now! To that end you called several local REALTORS® taking bids on listing your house. You listed with the one that said they could get you $245,000.00 and would only charge you 4.% to do so! You really resented that arrogant agent, who is he suggesting your house is only worth $200,000.00 and demanding 6% for his services.
Well, it's now four months later. Your listing agent now has nine months experience and he proudly tells you about his latest two sales, omitting that they are his first two sales and neither has closed yet. You're visiting with agent because he's got an offer from that guy who tried to list your house for $200,000.00. He explains that guy ask to present the offer himself, but that he wouldn't allow it. He had to "protect you", from this low-ball offer, he was only showing it to you because it was the only offer you've received.
He says the offer is for only $195,000.00. He reminds you your house is worth $235,000.00. He tells you the guy sent over notes about several sales where the sellers got cheated selling houses like yours for under $200,000.00. He tells you he already turned the buyer down, but the agent insisted that according to state law he had to present the offer.
Your agent explained the offer was insulting and he'd already written rejected across the acceptance/counter offer box and page 33! He ask you to initial it. Offended at being offered only $195,000.00 you reject the offer! Or possibly counter at full list price.
You just became a real estate speculator! Broke with your savings gone, hanging on by your fingertips you just invested in speculative real estate, advised by the least experience real estate agent you know! Truly, when you reject an offer it's the same as buying your house today with the hope of selling it for a profit in the near future! A more experienced agent would likely have put it to you just that way.
Today's real estate speculator is more likely to speculating on his own home and more likely to lose money than at any time in our history. Like most losers the cause is two fold, personal ignorance and poor advice! I'm not suggesting that all low offers be accepted, but all offers should be considered not rejected out of hand! When you reject an offer even a low one from a willing and capable buyer you are speculating. You become The Accidental Investor Today's Real Estate Speculator! Can you afford short term investments? Have you ever heard an old saying about "a bird in hand being worth...?"