1. Fire your realtor – There is nothing like “thank you, but I don’t need you” to wake up realtors to the new post-bubble reality. Remember, your realtor is not your friend. A realtor will always see you as just another commission.
2. Don’t visit open houses - Don’t give sellers the false impression that there is a active market out there for overvalued, miss-priced houses.
3. Instead, go to as many Condo launch parties as you can - Never refuse a free meal. Eat and drink at the expense of property developers. And make sure you take a doggy bag – it all adds to the overheads of property developers.
4. Ask the seller to rent rather than buy the property. It has never been a better to time to rent. The ratio of house rents to property prices are at an all time low. Furthermore, if you ask the seller to rent rather than buy, you undermine confidence in their ability to sell. It’s a win-win for you.
5. Make lowball offers – A great market destabiliser; if the seller is asking for $800,000 then offer him $400,000.
6. If lowball offers are accepted, make unreasonable contractual demands– Ask the seller to include contingencies and inspections in the contract. Ask him to pay the points on your mortgage; ask him for a plasma TV and cash back; demand that he walks the dog and tie your shoelaces for you. Ultimately, this is a get-out tactic. After all, buying is the last thing anyone should do in a crashing market.
7. Above all - don’t buy, wait– Here is some free advice – buying a house today will make you much poorer.