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Negotiating a Real Estate Purchase: Useful Tips For Everyone
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Negotiating may be the most critical part of the real estate
purchase process. Being able to strike an advantageous deal
with the seller virtually guarantees your profit.
Negotiating is both an art and a skill that you will master
with time and practice; I call it the “Million Dollar
Skill”. Here are six tips to get you on your way to
profitable transactions.
Know the Property
You should know as much as possible about the real estate
purchase you’re about to make. This knowledge comes from
researching the neighborhood and knowing how the property
compares to others around it along with the cost of
potential repair items you may find.
Know the Seller
The best way to learn more about the seller is to listen;
use the 75/20 rule, listen 75% of the time and speak 25% of
the time! People will be more likely to volunteer
information if you give them a chance to talk. But if you
aren’t finding out what you need to know, ask questions.
Understanding the seller’s situation and their possible
flexibility will help you negotiate financing options as
well as price.
You also need to find out what the seller’s motivations are.
Why are they selling? Or in the case of foreclosure what
circumstances brought them to this unfortunate situation.
Understanding the reasons behind the sale can help you
structure a deal that meets their needs and yours.
Think Win-Win
The best real estate purchase deals result from negotiations
that seek to provide something to both parties. There are
certain things you want out of the deal and certain things
the seller wants in order to sell. Every real estate
purchase has several facets. If you can give the seller
something they want, that will increase your chance of
getting something you want.
Negotiate Terms, Not Just Price
Price is not your only negotiating point. Sometimes the
terms of the deal are more important to the seller than the
price. Once again, if you can address the seller’s needs in
a real estate purchase, your offer will be more persuasive.
Maintain Control
If the seller counters your offer with an offer of his own,
don’t let things spiral out of control. Prepare for counter
offers by starting your negotiations low and have plenty of
concession points. Don’t focus on price, but use other
aspects of the deal in your negotiations. Don’t re-negotiate
things that have already been decided.
Be Prepared to Move On
Don’t walk away from an attractive real estate purchase
without offering your best deal, but know when it’s time to
walk away. There will always be another property.
As you can see from these tips, negotiating a real estate
purchase is more than two people in a room. Negotiations are
won or lost in the preparation. Achieving the outcome you
desire depends on your research and mental preparation.
"You are who you are and where you are because of what you
have put into your mind."
For more information or pricing please do not hesitate to
call or e-mail. I can be reached at (508) 595-9567.
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