Real Estate Negotiation: The Art of The Offer
So you’ve been marketing, the calls have been coming in, and now you really think you have the opportunity to get a great deal under contract. In that, it’s come time for what most people would consider the most intimidating part of the process: making the offer! And while there may be significantly less negotiating than most people imagine when making an offer in this real estate game, you know there’s still a number of tactics that you can take to give yourself the upper hand. Below, we have a few tips that you can use moving forward to give yourself the best opportunity of getting your offer accepted, so that you can make a killing off of your next potential deal.
Focus on the Sellers Needs
This may seem counterintuitive to some, but the best way to get an offer accepted on a given property is to focus first on the seller’s needs. Find out why they’re selling and what they hope to get out of the sale. If you can construct your offer to best fit the seller’s needs, then show the seller how your offer could “solve all of their problems” (so to speak), you have a much higher chance of getting the offer accepted. So do your best, despite your own self-interests, to focus first on the seller’s needs.
Don’t Be the First to Mention a Number
This is an old negotiating tactic, but it still holds true as a strong strategy to take: try to get the seller to throw out an asking price first. Nine times out of ten, the seller is going to throw out an asking price that is higher than you’re ultimately going to be able to pay. However, every once and a while, you’ll be able to get the seller to throw out a number that is lower than you would have offered, and then you’re really going to have a great deal on your hands!
Draw a Line in the Sand
You need to have a plan going into every negotiation and you definitely need to know how much you’re willing to pay. You have to be willing to draw a line in the sand, and know exactly the maximum number you’re willing to raise your offer to. Sometimes the strongest negotiating tactic we have is the ability to walk away, so be sure you know what your top number is, and be sure to stick to it!
Always Blame Things on Your Partner
This too is an old negotiation tactic, but when making and offer to a seller, blame all the negative of the negotiation on your partner. It doesn’t matter if your partner is your cash buyer or your cat, just make sure that when the seller hears something he doesn’t like, you blame it on your partner. You really need that long of an inspection? Sorry, my partner is a busy guy. You’re not willing to put down a high EMD? Sorry, this is the typical amount my partner and I put down. You really can’t come any higher on price? Sorry, my partner just won’t budge. You get the idea.
Are these the only negotiating tactics to take when trying to get your next great deal under contract? Of course not! However, they’re definitely enough to get you pointed in the right direction as you enter into the offer process. If you’d like some more suggestions as to how you can gain the upper hand in your next negotiation, check out my book The Get Rich Scheme: The Secrets to Making Fast Real Estate Cash in Any Economy at Amazon for FREE the week after Black Friday and Cyber Monday (11-26/18-11/30/18) on Amazon!
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Writer: Simon George
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