Reductions are a technique used to sell or buy properties that will be often overlooked.
Price reductions can turn a great deal into a magnificent one for a number of reasons. Once the deal is done to buy the property and the terms and conditions negotiations are underway, one of the clauses may be the deal is contingent on a passing inspection. At this point you have already negotiated the lowest purchase price and terms and conditions with the tactics you learned earlier but you might be able to get an even better price for this property!
Often we call the seller after the inspections have been made and tell them that the roof needs larger repairs than expected, or that the floors, kitchen or AC will need to be replaced instead of simply repaired and we ask for further reductions on the property.
Often they will ask for an official contractor bid that proves this is true. Because we have our team in place we can provide the bid from a professional contractor in no time and send it to the seller. AT this point the seller has already selected our offer and is already moving along towards the closing so many times they rather allow an even further reduction on the purchase price than having to go back and list the property for sale again and go over that whole process again.
This is why we love to deal with distressed properties because the potential to make a better investment is larger than purchasing a home that does not need many repairs.