One of the most important characteristics of any successful business is effective communication. It means nothing to have a good product or service without being able to communicate it’s strengths to others. One of the keys to a profitable business is thinking of it as a way to help people. The better you are able to meet your customers needs the more credibility you build as a business person and the more money you make.
When negotiating, you must be able to convince other people that what you have to offer them is more valuable than what they must give up to obtain it. In real estate, a lot of people stress the purchase price as the main component of negotiation. They’ll write hundreds of low ball offers, offending sellers and burning out contacts. In Texas, at least, investors who continue to write “low ball” offers have little success actually acquiring property at that price. Because it’s important to find a property at a discount that allows you to make money, you should look for properties whose asking price is already reasonable to you.
If you are going to make an offer below the asking price, you can sweeten the deal by providing something else attractive to the seller. Maybe you’re willing to pay cash or provide some convincing reason as to why you’ll be a “sure close.”
A lot of beginners to real estate investing get overwhelmed by contracts, and fail to learn it inside and out. The ones that do make an effort to learn the contract, however, save themselves a lot of money.
Title insurance is an example of a negotiable aspect of the contract. People in Houston real estate investing know that the title insurance is customarily paid by the seller, however in other parts of the country this is not the case, and it is negotiable almost everywhere.
If your confident about buying the property, and want to make your slightly lower offer more appealing you can sweeten the deal for the seller by offering more earnest money. That way they’ll know you’re probably more serious and likely to close than other offers.
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