Price Limit Order
Price listed on ads is just the price that the seller wants to sell the property at.
Real Estate business is a negotiated transaction so a property price should be agreed price by both parties.
Therefore a price limit order can be made. It is an offer that a buyer is agreed to purchase at the specific price.
Some sellers only sell at their designed price but there is no charge to make the price limit offer from a buyer so we recommend you to make one. It is also important to show reasons for the price limit order to convince the seller.
e.g. Some specific part needs to be repaired. Rental market in the area. Possibility of rent drop etc.
However it doesn’t mean that a price limit order can be arranged at any price a buyer wants.
Such a nonsense offer would make your real estate agent feel reluctant because there is a risk that the seller may not receive any LOIs from this company once the seller gets upset with the outrage cheap price offer given by the buyer. With a price limit order, purchase price of a property goes down and brokerage fees to the agent also goes down. If the offer is way too lower than what the seller is asking for, the whole deal would disappear.
For some cases, it might be a better idea to go, “Please try to close the deal. I will pay xx% brokerage fee if you negotiate the purchase price”.
- Sale by Private Contract & Sale by Auction
- Price Limit Order
- Settlement & Ownership Transfer
- Ways to Search for Properties
- Documents & Points to check
- Ways to find legit real estate agents, narrow them down, and become their favorite customer
- Gross Yield & Net Yield
- Letter of Intent
- Important Description & Sales Contract