Becoming successful at real estate investing definitely relies on developing good negotiation skills. Negotiating is involved at every stage of flipping homes from putting properties under contract to getting the best price on rehab work and reselling. Let’s take a look at 3 negotiation strategies you can put into play right now in order to get what you want on the properties you are buying or putting under contract.
Playing The Take Away
This easy to deploy negotiation strategy for real estate investing is just like playing hard to get with that girl or guy you really like. Make your offer or let your intent of making an offer be known at terms slightly better than you actually need. Do not chase the seller, give them the impression that you have the ability to purchase their property quickly and for a fair price, but are not desperate to do so. Make them chase you and beg for your offer or to make a deal that is a little better. Tell them you will have to get back to them later or let them sit and panic for a couple days and worry that they may lose a serious buyer for their home.
Another important factor you need to remember when making offers for your real estate investing business is not to leave your offers open ended in terms of time to accept. Only leave a 24 hour window for the seller to accept or counter your offer. While you may still entertain a counter later the pressure this puts on them will help to make them decide quickly and not only keep your real estate investing business moving but help you get better terms.
Use The Numbers
To many sellers in this market still overestimate the value of their homes. Explain to them the numbers involved and the costs you incur while real estate investing. Explain home banks are going to use the lowest numbers to value their home, how much repairs and improvements are going to cost, marketing and labor and even the taxes and real estate commission you are going to incur and how this means you simply cannot offer them any more for their property. Yes you are real estate investing for a profit, but there are real costs involved that they have no doubt not accounted for.