| When buying a real estate investment property | | | | often make the seller more receptive and |
| you need to be aware that negotiation plays a | | | | accept your proposition. |
| big part on your bottom line, or the | | | | |
| potential profit you could make. Below are 8 | | | | Selling your investment property: |
| great negotiation strategies that you can use | | | | |
| when buying real estate. | | | | 1. Be sure that you really want to sell the |
| | | | property |
| 1. Check if the seller is motivated to sell | | | | |
| the property | | | | Before you tell anyone that your property is |
| | | | on sale, think if it is really the case. If |
| In real estate investing, dealing with | | | | you deeply hate the idea of selling the |
| someone who does not really want to sell | | | | property, it is generally a good idea to try |
| their property is a waste of time - you | | | | to keep it. Every real estate deal has pluses |
| should forget about them and move on, no | | | | and minuses. If you sell, you get instant |
| matter how promising the deal might look | | | | cash profits, but sacrifice long term capital |
| like. How to check the seller's motivation | | | | growth. If you decide to hold, the opposite |
| level? It's relatively simple: try to make an | | | | applies. |
| appointment. If he or she puts it off | | | | |
| (especially if it happens a few times in a | | | | 2. Be reasonable |
| row), there is a 90% chance that the seller | | | | |
| is not motivated to sell. | | | | When it comes to negotiations, don't be |
| | | | ridiculous. You can demand high prices, but |
| 2. Inspect a property before making your | | | | make sure that they are reasonable (certainly |
| first offer | | | | not twice the average). You will only be left |
| | | | with an overpriced property that will be |
| Never, ever make an offer before a close | | | | difficult to sell. Moreover, making such high |
| inspection of a property. This will put you | | | | offers may cause some real estate investors |
| on the back foot throughout whole negotiation | | | | to back out from the negotiations. You |
| process! Also, don't let the seller force you | | | | usually can hope for more than the buyer's |
| into making your offer RIGHT AFTER the | | | | first offer though, so it is always worth to |
| inspection. You will need at least a few | | | | haggle a little. |
| hours to prepare your final offer. It's best | | | | |
| to inspect the property and then make an | | | | 3. Read through all the clauses and |
| appointment for the following day. Do not | | | | contingencies before signing anything |
| make any offers before that time! | | | | |
| | | | There's an old saying: "The devil's in the |
| 3. Prepare more than a single offer | | | | details." Nowhere is it truer than in real |
| | | | estate deals. Before you sign anything, read |
| Do not enter negotiations with only a single | | | | the contract (especially the small print). |
| offer. Even if you don't have any aces in | | | | Such things as being held responsible for |
| your sleeve, make sure that you can make at | | | | making all necessary repairs requested by the |
| least three offers - and that your final one | | | | buyer or agreeing for waiting six or seven |
| is still profitable enough to enter the deal! | | | | months for the money may spoil even the |
| | | | best-looking deal. |
| 4. Talk to the seller while leaving | | | | |
| | | | 4. "There's always another buyer around the |
| If you and the seller can't reach an | | | | corner" |
| agreement, try this simple trick: make your | | | | |
| final offer standing at the door. First off, | | | | If the purchaser does not seem to be able to |
| this way you give a clear sign that the | | | | meet your price expectations or offers you |
| seller can't hope for a better deal. Then, | | | | terms you cannot really accept, don't waste |
| this puts the seller on notice that you are | | | | your time. There is always another purchaser |
| about to walk away from the deal - he or she | | | | around the corner - and even if there won't |
| may not like your offer, but there is no | | | | be anyone else, you can always call the buyer |
| guarantee that the next real estate investor | | | | later, can't you? |
| will give the seller better terms. This can | | | | |