How to Negotiate Your Next Real Estate Transaction
We are currently involved in two Real Estate Transaction as sellers. One
is a small property big enough for a gas station and a tire store. We offered
the small property for $200,000 and found a buyer immediately. He agreed to our
price for cash. We closed the following week. We had to learn how to negotiate your
next Real Estate Transaction in real-time.
We asked for $1.000.000 for the larger piece of property. The interested buyer
submitted his opening bid at $650,000, we countered with $850,000, and both
parties settled at $750,000. We also agreed to close at the end of 30 days.
When the buyer couldn’t meet the closing date, we asked for a penalty payment
and gave him another 30 days to close.
How to Negotiate Your Next Real Estate Transaction
1. Price – Everything Starts with Price:
- If you are planning to come in well below the asking price, you should prepare yourself for a counteroffer.
- Understand the seller wants the highest price, and the buyer wants the least amount to pay — usually, it ends up somewhere in the middle.”
- You have to know your top bid before entering into discussions. Knowing what you are willing to spend before negotiations means you are starting from a place of confidence. It will help with knowing when to walk away and when to counter.
- Be prepared to walk away from the table when the deal is not right for you. Merely stating what is not right for you is not good enough. Instead, write it down and share it with trusted friends and family; that way, you’ll be embarrassed if you give in to the emotions of the negotiation and stray from your bottom line
- You are not trying to make deals. Successful negotiation results in favorable deals, not just deals for the sake of finding agreement.
2. Meet a Seller in Person
You have an advantage over the anonymous offers that come in. People want to do business with those they like and trust. This is especially true when it comes to selling a home because it could be an emotional process for sellers.When you meet face to face or online with various technologies, such as WhatsApp or Skype, you can see their face and gauge their reactions to your offer.
3. Make a Cash Offer When You Can
Cash is, and forever will be, king because sellers want assurance that a deal will settle. One way of giving them confidence is by making a cash offer. A cash offer guarantees a short settlement process and avoids the long and tedious financing process.Sellers are more likely to choose a cash offer that’s lower than a financed offer because they have confidence in the deal closing.
4. The Last Hurdle is Formalizing the Agreement
To formalize an agreement, there must exist four essential elements: (1) definite terms; (2) an offer; (3) an acceptance; and (4) consideration, which means that each negotiating party is giving the other something of value to induce the agreement. The consideration element can be satisfied simply through a signature, making it a binding agreement. Be careful before signing anything.FREE information on How to sell your house fast
Styl Properties, Inc. is here to help homeowners out of any distressed situation.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast. How to Negotiate Your Next Real Estate Transaction
Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577.