Competition is the shadow of real estate investing. Expect it to be there where the money is. For that reason, especially in areas where the contest is too tight, real estate investors are always looking for new ways to be ahead of the pack. And investors will have a lesson to learn from a major company.

Unilever NV, which is among the biggest consumer products maker in the world, posted a 33% rise in sales for the first quarter of the year. It earned $1.28 billion in that period. You could just imagine how much Lipton tea and Dove soap they sold. Now here’s what real estate investors have been waiting for; the juicy part.

According to folks who analyzed Unilever’s surge in sales, the rise in profit was due to a reduction in prices. “In cutting prices, Unilever continues to up the pressure on rivals,” an analyst was quoted as saying. Now, this is an idea that those in real estate investing must give a thought. If competition is really that tight in your area and you don’t want to move out, you can simply reduce prices.

For example, you are wholesaling houses and earn around $10,000 per transaction. You’ve done pretty well before competitors started coming out of nowhere. If you sell houses at the same level, you can try dropping your prices by around a few thousand bucks. You might think that this will result in a massive loss of profits for your real estate investing business. But if investors who buy properties from you see that you offer lower prices, you are likely to attract them.

Real estate investors, of course, should carefully study this option first.

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