many investors are reporting the word “distressed” is just as likely to mean that a house has been over-improved—either by another investor or a homeowner—and now will not sell at the price the owner expected. As a result, that property optimistically sits on the market, waiting for the buyers the media assures are out there, and ultimately begins to languish. What happens when these properties that are not traditionally distressed but that have been listed by distressed or semi-distressed sellers hit the 90-day or 120-day marks? As more and more of them hit the market, some sellers will become more willing to drop prices. Some will get desperate. When this happens, prepared buyers of off-market properties should be standing by the phones, because sellers who would not even speak with them three months (90 days) prior will be calling back to offer even lower prices than those originally discussed. No matter how certain it seems a homeowner will never sell to you, make sure you have a system and a process for reaching them and for making it easy and painless for them to reach you. TREND 2: INFLATION AFFECTS DISCRETIONARY SPENDING, WHICH AFFECTS REAL ESTATE You have probably heard other investors say they love real estate because at the end of the day, everyone needs somewhere to live. This is true. One of the most wonderful aspects of owning physical property is you always own something other people need. However, since 2020, but arguably since the last housing crash, the popular perspective on real estate
78 | think realty magazine :: september - october 2022
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