Negotiating real estate deals can be super tricky but you can win the deal by following a few guidelines.
A little bit about me? I closed over 150 transactions in real estate, me, myself, representing buyers and sellers and even some investors.
Investors are some of the hardest ones to deal with most of the time. I love foreigners. In fact, I love all people but some of that artist negotiations have been with middle Eastern clients. Keep in mind I’m not racist, I’m just basically putting out some facts on some of my experiences. So let’s get back to how to negotiate like a king…
1. Keep feelings out – Always focus on the goal
Here’s an example you sending a lowball offer on a property. Let’s say it’s 200,000 and you sending 125,000. The center will instantly call you back and may slap you or punch you in the face. It’s up to you to remain calm and try to win him over. He can call you whatever names he wants, cheapskate, a fraud, even a cheap bastard. But you must remain calm, and try to educate him why you send that offer and the advantages of him taking your offer.
2. Be ready with facts and statistics
I see too many wholesalers and realtors in and offers but not being ready with why that offer was presented to the seller. It’s your job to convince him oh. So you have to have some comparable sales in the area and then add in the repairs that need to be done. Make sure you add in holding cost oh, and of course your time as a general contractor. And remember money has value. So when your money stuck in the house that money is lost such as interest or opportunity cost.
3. Look for faults in the property when negotiating real estate
So now you sent in an offer and the owner calls back and has slapped you a few times… But now it’s time to let him know that you found many faults in the property, you have to look hard man be aware of some of the most popular. Maybe a drainage issue, Roof age, foundation issues… Even if it’s just a slight crack in the foundation have to use it in order to bring that price down.
4. List the advantages of choosing your offer
Maybe you’re using a hard money loan or a bridge loan oh, just write the offer up as cash but make sure you have a loophole in the system to expand contract with out any penalty. Or maybe a small loss of 25 to $100