subject: Real Estate Negotiations Secrets Revealed [print this page] You probably offered less than you were willing to pay when you bought your home and that is actually the most common negotiation technique. For experienced investors, however, that's just one technique among the many more powerful ones. What else can you do?
How To Make An Offer
An odd amount such as $161,793 is what you can offer. This gives the impression that you know something the seller doesn't. They will end up thinking that you probably have a good reason for coming up with that particular price.
Why you should play dumb. Don't forget to ask questions, talk slow, ask for help, and never show off your real estate expertise. Sellers would be afraid to budge if they think they are being taken advantage by a smarter person.
Use the "limited authority" ploy. How about saying "I'll have to check with my wife (or partner)." Accepting the idea that you can't do something rather than the idea that you won't is easier for sellers.
Why you should refer to precedent. You can say "My father bought his house this way." Sellers will feel more comfortable if they know it has been done that way before if they know it has been done that way before if the offer is at all unusual.
Try asking for things that you don't want. When negotiating, this will let the seller win concessions. Saying things like "I guess I don't need the refrigerator, if I can get my price" would mean that you are more likely to the price you desire.
Be reluctant. "well, I don't know..." With reluctance, the seller will then be looking for ways to motivate you and this will also let him feel like he's won something when you settle the point.
Try to make their offer their idea. "Are you saying you'd like a later closing, and more earnest money? Well let's do it your way, then. I just need..."
Get a yes before the offer. Give this a try: What if I paid your price, but got my terms? Would that work for you?" It will be hard for the seller to say no to an offer he more or less already agreed to even with a few changes.
Flatter the seller. It has been proven that flattery is worth an average of $1962 in real estate negotiations. That's a joke, by the way, but you know if he likes you, you'll probably get a better deal.
Try to pass over problems and then later, return to them. You should first agree on every agreeable point. It will feel like the house is sold then, and it will be difficult for a seller to lose the deal over an issue or two that you need to go in your favor.
You can spend a lot of time looking for cheap houses. Instead of doing that, you can spend a little time learning how you can purchase every home for less with smart negotiation.
