 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
Negotiate your real estate purchase
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
The original author is not known. It is not our intention to infringe upon copyrighted material. If you are the original author of any of these articles, please let us know so that we may provide
appropriate credit. All articles come from out side sources and should be credited accordantly. The information presented was taken from a open, no cost public venue and release in the same
manner.
appropriate credit. All articles come from out side sources and should be credited accordantly. The information presented was taken from a open, no cost public venue and release in the same
manner.
Most investors will agree, negotiating a good deal is the most difficult part of real estate investing. Very
rarely will you hear an investor say that he got everything he wanted. But practice makes perfect and in the
meantime, here are a few suggestions to help you negotiate your next deal.
The old saying of 'knowledge is power' couldn't be more true than in real estate. To negotiate a good real
estate transaction, you should know the market, the law and try to lear as such as you can about the
seller's status.
Understanding a seller's motivation for selling is a powerful asset, particularly in the case of an
approaching or current foreclosure. Try to learn if there are recent events that are forcing the seller to sell
quickly, how rapidly are they eager to close, etc. Other useful information includes how much debt the
seller is carrying, if he is late on payments, if he is in pre-foreclosure, etc.
You may wonder how you could possibly extract this information from the seller. This is were tact,
respect and patience come into play. Try to draw them out slowly by establishing a rapport and revealing
some of your own personal information.
Other than the seller's situation and the results of the professional home inspection, you will also to
understand the area. How many properties have sold in the last few months and for how much. This type
of information may be available online or through a real estate agent.
A great skill to have in real estate investment is the ability to chat up the neighbors. No one will know the
property and the area better then them. Ask them about the changes in the area, how many neighbors have
renovated their homes, if the home you are interested in had any recent work or repairs done, etc. The
neighbors will be able to give you a feel for the neighborhood and whether it is deteriorating or improving.
It pays to have your financing in place early on. This will allow to jump on a good deal without delay.
Make sure you are pre-approved and not just pre-qualified with a lender. This could be a bargaining chip
for you, money in 'your pocket' as opposed to just promises.
One good negotiating technique is to offer a price that is not a round figure, such as $275,400. All the
seller will see is the extra $400 in their pocket. Make your offer a fair one, in line with the mid-range of the
market. An offer that is too low will upset the seller and going too high may please the seller but cut into
your potential profit.
You can also negotiate the portion of the closing costs that the seller might cover, title search cost, repair
expenses, etc. Try to be realistic in your demands and don't give up. You will not get everything you ask
for but you may be able to negotiate one or two things.
rarely will you hear an investor say that he got everything he wanted. But practice makes perfect and in the
meantime, here are a few suggestions to help you negotiate your next deal.
The old saying of 'knowledge is power' couldn't be more true than in real estate. To negotiate a good real
estate transaction, you should know the market, the law and try to lear as such as you can about the
seller's status.
Understanding a seller's motivation for selling is a powerful asset, particularly in the case of an
approaching or current foreclosure. Try to learn if there are recent events that are forcing the seller to sell
quickly, how rapidly are they eager to close, etc. Other useful information includes how much debt the
seller is carrying, if he is late on payments, if he is in pre-foreclosure, etc.
You may wonder how you could possibly extract this information from the seller. This is were tact,
respect and patience come into play. Try to draw them out slowly by establishing a rapport and revealing
some of your own personal information.
Other than the seller's situation and the results of the professional home inspection, you will also to
understand the area. How many properties have sold in the last few months and for how much. This type
of information may be available online or through a real estate agent.
A great skill to have in real estate investment is the ability to chat up the neighbors. No one will know the
property and the area better then them. Ask them about the changes in the area, how many neighbors have
renovated their homes, if the home you are interested in had any recent work or repairs done, etc. The
neighbors will be able to give you a feel for the neighborhood and whether it is deteriorating or improving.
It pays to have your financing in place early on. This will allow to jump on a good deal without delay.
Make sure you are pre-approved and not just pre-qualified with a lender. This could be a bargaining chip
for you, money in 'your pocket' as opposed to just promises.
One good negotiating technique is to offer a price that is not a round figure, such as $275,400. All the
seller will see is the extra $400 in their pocket. Make your offer a fair one, in line with the mid-range of the
market. An offer that is too low will upset the seller and going too high may please the seller but cut into
your potential profit.
You can also negotiate the portion of the closing costs that the seller might cover, title search cost, repair
expenses, etc. Try to be realistic in your demands and don't give up. You will not get everything you ask
for but you may be able to negotiate one or two things.
Negotiate your real estate purchase