24 Nov Getting A Seller To Take Less Than They Should
Negotiating a property to the best possible price is one way to build instant equity into your property. Remember that buying a property the right way is the key to your Real Estate Investments. So, how do you get a seller to take less than they should?
Negotiate From A Position of Power:
The art of negotiating in Real Estate has been diminished to a back and forth game of matching each others counter until you meet in the middle. Identify the actual value of the perfect property, and then illustrate ways that the subject property is not actually PERFECT. Those imperfections are the justification for a less than market value offer.
Make It OK For The Seller To Discount It For You:
Sellers are proud of their properties. Low ball offers and sharks make them less apt to sell even at market value much less below. Allowing the seller to feel good about you as the buyer gives them permission to go lower.
Keep It Clean:
Sellers have an expectation of their costs when selling a property. Instead of coming in and offering a low price, and asking for a home warranty, closing costs, and inspections to be paid by the seller, etc… consider paying for inspections and buying your own warranty and closing costs. Add up what you will spend on those items and work that into your high offer price. If you could spend $1,500 extra for your closing costs but get the property for $5,000 less would that be a fair trade? Because the seller didn’t feel like they were beat up, it’s likely to happen.
Do What You Say You Will Do:
When you say “this is my final offer,” be ready for that to be your final offer. If you come back again afterwards, the leverage shift just went to the seller. When you walk away and come back with the same offer 24 hours later you are much more likely to get the deal done.
Offer The Closing Argument:
Similar to the presentation of your offer, this gets presented with your final and best counteroffer. The set-up came with the original offer. Now, it’s time to introduce yourself again, and separate yourself from the sharks. It also offers you an opportunity to say thanks to the seller for negotiating and inform them that you will be moving on without a YES to the counter.