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