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Six Negotiating Tips To Use When Buying Real Estate

Do you know what the real key is to buying any property at a bargain basement wholesale price? It is knowing how to successfully negotiate with the seller. Being able to buy a property at your price and on your terms is determined by what you say or do (or by what you do not say or do).

Here are 6 profitable negotiating tips you can use when purchasing any type of property:

1. Do not try any hard negotiating over the phone. On your initial contact, you should just be listening to what the seller is telling you.

2. Avoid suits and fancy clothes, just dress neat and clean. You want to look like the avearge Joe, the everyday person. So, forget the flash, no gold chains, no Mercedes. Arrogance has a tendency of aggravating those who are going thru financial problems and are therefore motivated to sell. Just keep your dress simple.

3. Never make negative comments about the property’s condition or the seller’s lifestyle. Snide comments will alienate the seller.

4. If your initial offer is rejected, ask the seller to propose a counter-offer. Never give up just because the seller rejected your first offer, or even your first several. Persistence is the key to successful real estate negotiation.

5. Make sure you ask the seller if there are any other outstanding mortgages, liens, loans or judgments against him/her or their property. Sometimes, they will conveniently forget to tell you about them.

6. Never leave an unsigned offer with a seller to think about. If you do, the seller could use your offer as a negotiation tool with the next potential buyer. If you cannot get a signed contract on your first visit, send the seller a Letter of Proposal, which outlines your purchase offer.

Avoid getting involved in transactions that are not beneficial to both you and the seller, based on the circumstances at the time. Most times, you will be offering the seller what most “conventional sources” cannot or will not offer him. You will be buying his less than marketable property when he wants it bought—which is usually immediately, but at your price and on your terms.

Larry G. Potter has been investing in real estate since 1984 and is the #1 team leader at Home Seller Assist, otherwise known as We Provide The Cash, provider of weekly RE training and 100% funding to purchase residential and commercial properties.

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