What makes a Bargain?, Is it Truely a Bargain?, Why are Bargains Tougher to Locate??
The word bargain meant a negotiation between parties. Since the haggling process is no longer part of main stream America and perhaps a distant memory of the elder generation, the word in the vernacular has come to mean cheaper than what other people would pay.
The years of my youth it was easier to locate bargains locally. hidden treasures were available to those who knew about them. Today information about a property is or can be available to anybody and everybody connected to the internet. Monies searching for a ROI (return on Investment) might come to New Jersey, USA from perhaps Saudi Arabia or other oil producing area while that commodity is priced at a price level that yields excess monies.
Humans have always wanted to improved their station in life. The information age has also become the education age. People learn of potential earning possibilities, then they can locate others that have found they can offer an online course from anywhere in the world.
Why does the present owner wish to sell? Vacant land? They may have purchased at $1. The cost of maintaining the property must be include into the equation. Is the property currently zone for less than optimal usage? Does the governing body insist upon improvement that would add costs that would bring the future sales price for the needed ROI greater than the market than the will bear. Such requirements of subdividing may be requireig a road, sewer piping, electrical lines, and water supply cost might have other buyers hesitate.
Experience
Money, Financing, Location
The current owner may be eager to sell because of potential profits of a different project.
Time, the 4th dimension has value. You might be familiar with future value and present value formulas. If the present owner can improve the property but can not add the needed value for the next year, that means there is a years worth of expenses to pay for. Plus a years worth of profit on the monies yield from the sale that can be earned if sold. Thus a potential bargain for you and new life for the previous owner.
Perhaps most people a familiar with this concept from the retail area. Every square foot of shelf space must earn its living. If you have seasonal products taking space, at the end of the season must put those items in the bargain section to make room for items that will have a return on investment. As previously mentioned this also turn dead inventory into monies that can be used for current goods. This concept is also used if a company must have need cash. (that will appear on my business management page... Perhaps)
