KHufford
6002 Posts |
 Posted - 05/13/2008 : 01:11:56 AM
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5 Tips to negotiate the highest return in selling real estate
You make your money in real estate when you purchase it. In other words, it’s extremely important that you shrewdly negotiate to win when you buy to give yourself the highest return on real estate when you sell. To do this, follow my 5 simple negotiating tips and you should succeed.
1. Don’t fall in love - Treat your purchase as a business and check your emotions at the door. Use your head rather than your heart because this will keep you from buying at any cost. If the deal makes financial sense.
2. Don’t just low ball...validate - When submitting an offer which is below what the seller is asking, make sure you have data from comparable sales and a detailed spreadsheet of expenses you will incur (if any) to make the property fit your needs/wants. By doing this, you show the seller that you are not trying to insult him and that you have done your homework.
3. Leave room to move - I usually like to “ask for the moon” knowing that I most likely won’t get it. In doing so, you can show the seller that you are letting him win too by allowing him to negotiate your price UP from where you started. You may be surprised what a seller will do to keep you in negotiations.
4. Negotiate closing costs - In addition to purchase price, you can ask for other concessions from the seller such as getting them to pay some or all of your closing costs. Some sellers feel better about paying these costs rather than accepting a lower price. Maybe it is so they can say they got a higher price to their friends/family. It all boils down to their “NET” anyway but this seems to play on their ego quite often. Also, another negotiating “chip” you can use as a sacrifice to show the seller that you are trying to work with him.
5. Motivation - Always try to find out why the seller is selling. Is it a distressed situation? Pre-foreclosure? Divorce? By learning this valuable piece of information, you can get inside the seller’s head and therefore better appeal to his wants/needs. Maybe it’s just a quick close date they need to get to your price so be sure to get your financing in order before starting to look so you can be ready to move quickly if the need arises.
Posted by Brett Carman on 5/7/2008 at 12:34 PM
Posted in Real Estate |
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