Getting A Seller to Take Less Than They Should
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 right is the key to your Real Estate Investments. So, how do you get a seller to take less than they should?
- Negotiate - Negotiate from a position of power. The art of negotiating in Real Estate has been diminished to a bank 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.
- Discount - 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 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, inspections paid by seller, etc.. consider paying 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 $1500 extra for your closing costs but get the property $5000 less would be a fair trade? Because the seller didn't feel like they were beat up, its likely to happen.
- Do what you say - Do what you say you will do. When you "this is my final offer" be ready for that to be your final offer. If you come back again afterwards, the leverage shift just wen to the seller. When you walk away and come back with the sam offer 24 hours later you are much more likely to get the deal done.
- Closing Argument - 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, its time to introduce yourself again, and separate your 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.
At the Arend Team, we understand that each property and seller has different motivation to sell the home. We take this account and come up with appropriate strategy to get our clients the best possible deal on the home. Call us today to start the real estate purchase process.