How To Purchase Cheap Houses
One of the simplest ways to buy cheap houses is to make a low offer. This is also called a "lowball" offer, this is a basic ploy used in real estate and many other negotiations. Everyone knows this particular technique, but most are afraid to use it because it prove to be a waste of time if you don't do it right, and it can be embarrassing; on the other hand it can also get you some cheap houses.
There is a saying amongst real estate investors that goes something like this: "If you aren't embarrassed by your offer, it isn't low enough." However, you need to understand that a truly low offer isn't going to be accepted most of the time.
Actually, it will most probably never be accepted, but this doesn't necessarily make it a waste of time. There will often be a series of counter-offers, and a low initial offer is just a way to alter the seller's expectations.
So the idea of a low offer is to alter expectations. If a seller is asking $200,000, and you offer $160,000, then he'll certainly reject it. Buying cheap houses isn't going to be as easy as that, but he may counter-offer. Now suppose you go back and forth with him, and eventually agree to $182,000. He may not have considered going this low before, but now it seems like victory to him after starting at $160,000, this process can lead to some very cheap houses.
But there is a downside. You may lose a lot of potential cheap houses this way. There will be some sellers who won't even take subsequent offers seriously once you have offended them with your extreme offer. This then, is a technique to use when you have the time to find that home, and really want the best deal you can get.