Chrome Plated
There was once a friendly salesman, who wanted to sell print impression was press. Nice chrome and all, so it should be much value – let's say, $ 1,000,000 (why pick my teeth with my Pinky:>).
One day, a buyer at the cold heart of the arrival and the seller offered $ 500,000 low kindly. Â Oh, the insult! Â The scandal! Â The seller has stamped his foot and has rejected the offer. Â even refused to talk with that customer forever.
When the buyer was asked by a neighbor of the seller, why so. insult the seller The buyer responded that while the press was very pretty, whether to spend $ 1 million, he would have preferred to buy the print in the next town. After all, the impression that the press can print two times faster.
Well, as a parable, stinks. as a lesson in real estate, is on. Let me explain in two areas.
1. Residential real Estate.es Many actors can say they have lived through this parable when trying to get a list (or a discount). Â The market is shouting loud and clear that the price of the house X, but the seller wants more. Often for reasons only spent $ 30K on new furniture or their paint colors in bold were the height of fashion for 5 years, or who need a gain of $ 50K so they can buy no new char. One of these things are important for buyer can find another house like less. So what is "chrome" – Why Is this an advantage for the buyer and why would to pay more for it?
2. Commercial real estate.es in many ways the real estate business is like a printed press. the buyer to purchase a flow Cash does not work as investment. more sellers in the trade field, which often refer to income or ability to grow, why pay more for their Why properties.es the buyer pays the seller for the work that the buyer should do? A If the buyer has to increase rents, and suffer turnover that can happen, why the more money the seller? R Similarly, if the buyer will have to build new buildings to expand or change the zoning to allow for expansion, so why should the seller will receive more money? A This only makes sense if this property is unique in its expansion capacity or to receive more income. How often is the case?
Say you have the ability to pay up to $ 1M for commercial property. You look around and find 2 that you.i appeal of these properties have a cash flow of $ 10,000 per month other assets have a cash flow of $ 5000. do you buy?  The second owner told him he could raise the rent or possible expansion of buildings (you have to spend more money to do this), and you should be able to get the money to the range of $ 10,000 / month, then change your mind about which one to buy? Â
About the Author
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