The Number One Secret of Real Estate!

The number one secret of Real Estate is that there are no secrets. I get calls all the time from people that want to see a house they saw on line that looks like a great deal. Of course we all want a great deal but generally I see several things happen:

1. It is a phantom listing. A home that is not really on the market. Often it is a listing that is not really for sale that an agent is holding out there as bait in order to get the phone to ring. (This does happen. I once had a Broker I worked for, for a very short time, advise me to list my own home for sale – not to sell it but just to get the phone to ring.) Sometimes this great listing is a Pre-Foreclosure home on a web site where the price is based on the balance owed on the loan, not the market value (and it is not on the market). There are lots of ways this game is played. But basically the house is not really on the market.

2. Then there is the listing that is a great deal. But I got news for you – it is no secret. The entire point of real estate is to get maximum exposure for a listing. The property has probably been listed low or to look like a great deal so lot's of people will see it an put in offers. So it may be a great deal, but you are going to have to compete for it so at the end of the day it will not be as good of a deal (although it still might be a good deal). I have seen sellers advertise low but hold off selling until the get the offer they will wanted. Remember the entire point of a “Sale” is to draw in clients – no one wants to keep it a secret.
   One time I showed up at a “great deal” with one of my investor clients looking at a potential flip. They ended up with 13 investors bidding on the property. We dropped out; we were scared what we might miss and then win the bidding. Just not enough room for the risk. That property ended up setting on the market for some time after it was sold to a flipper with some price drops.

3. The place is in such poor shape it is not a good deal. Looking at homes on line is like internet dating – sometimes you don't know what you are going to get until you show up, even then there might be hidden issues.

4. Here is the one that really gets me. On occasion we find the perfect property at the right price for the person hunting for a unique opportunity. They are so shocked and unsure they cannot bring themselves to make an offer. In their own minds they know something must be wrong, they must be missing something. I try and tell them we will have inspections and a contingency period to discovery any problems. While they are thinking about it the deal slips away.

What is important to take from this post is there are very few hidden deals out there. Marketing is all about getting properties exposed to the most amount of qualified buyers. If you are a Real Estate Investor or Looking for a Home to Live in, to get a good deal in real estate you need to keep yourself informed about what is coming on and off the market, educated about the market and real estate in general, and be prepared to move fast when an opportunity presents itself.

Gene Riemenschneider is the Broker and Owner of Home Point Real Estate in Brentwood CA. Serving the East Contra Costa County Communities of Brentwood, Antioch, Oakley, Discovery Bay, Pittsburg, and beyond. For Buying, Selling or Investing call 925-260-4321.