Friday, July 29, 2016

Purchasing a home or investment property? Are you a Trump or Clinton style buyer? - By Matt Trudel

The first step after being approved to purchase a property is to locate the property right for you. Enlisting the help of a Realtor or many Realtors is certainly a Trump move. He tends to surround himself with people who know more about whatever the situation is in order to gain more knowledge and hopefully an advantage. Some people prefer to search on their own and not let a lot of people know what they are doing, thinking, or what their interest may be in a particular property, more of a Hillary style.

Now that the potential property is located, the negotiations on purchase price and terms must begin. The type of market and the competitiveness may affect ones strategy. We all know that Trump has been successful in real estate, more so than not. We also know that he does not have a hard time saying what is on his mind at the time. Hillary is certainly more tight-lipped and much less of an aggressive style "in your face" negotiator. Both styles can have their advantages and disadvantages.

Trump's style might involve a very direct and demanding approach, cash offer, close in 10 days, no inspections, and the seller has 6 hours to accept. It almost puts the seller in a corner to respond and some sellers don't like that. If the market is competitive and there are other interested buyers, Trump would likely offer more than the asking price trying to remove any negotiations. Often this style will get you the property, an advantage yes, but the disadvantage is where the Hillary style may prove to be the better option.

Hillary's style of offer would likely be well below the asking price depending on the competitiveness of other potential buyers. It would certainly include several inspections as both a safety measure, a means for future negotiation of reduced price, and an overall way to back out of the deal at the last minute. The biggest advantage to this style is that if something significant is wrong with the property that will cost many thousands of dollars to repair it could be negotiated that the repair is done prior to closing. 
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So whether you are more of a Trump style buyer, being more direct and just saying clearly what you think, or you are a Hillary style buyer, preferring to keep your cards to yourself, secretive and remaining tight-lipped, both styles can have their advantage. The one thing that separates these two styles is in trusting in a professional to help you through the process. Trump while candid at times, always seeks support from professionals or experts. When buying a home, just like Trump, having a professional on your side is almost always the better choice.

Matthew Trudel is the owner of Five Star Realty in Windham.

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