You may have read many properties being sold at huge losses, thinking that the buyer must be lucky to have such a great bargain. Somehow, this gives you the motivation to start the search for undervalued properties and hoping that you will, one day, be the buyer of such great deal.
Unfortunately, most of such transactions will be sealed before it reaches any public listing channel. So if you are spending few hours on public listing websites every day, you are most likely not going to find such deals. You will need to be in these network to receive such privileged invitation.
Imagine if you are a distressed seller, due to certain circumstances, you have to sell your property quick, who will you speak to first?
- Seller’s family members
If you are willing to sell at a loss, you probably would not mind to take this opportunity to strength your relationship with members in your family, either your siblings or your parents.
- Seller’s relatives
Assuming your family members are pretty tight in their cash flow as well, the next closest group would be your relatives or even your spouse’s family. There is a chinese proverb “肥水不留外人田”, which means people will usually reserve any good stuff for their family or relatives only. This is especially true when comes to good deals in real estate.
- Seller’s close friends
After exploring his relatives, the seller then extend this invitation to his closest friends who he has known for decades.
- Seller’s property agent
At this point, when none of his family and friends has interest or ability to take this good deal which is highly unlikely, he will open this listing to a property agent he trusts. Certainly, if the agent has the cash for this deal he would seriously consider to buy it himself.
- Agent’s team, clients and friends
Unless, the agent and his family is not taking this offer, he will then extend this listing to his immediate teammates, clients and friends.
- Public listing
Finally, when all fives circles above has no interested party, the agent will then start his marketing work in public listing channels such as propertyguru.com, srx.com.sg, theedgeproperty.com, newspaper classified etc.
In short, I hope this illustration has shed some light and help you understand that genuine good deals will be snatched up pretty quickly within the closed circle of distressed sellers or real estate agent the seller engages. As such, rather than spending ineffective hours searching public listings, do spend more quality time catching up with your friends who have bought overpriced properties or who is an agent. Be in their network. “肥水不留外人田”