Negotiating your Way in Real Estate

I am sure that when you purchased your home today, you presented an offer that was a lot less than you actually were willing to shell out, right? Everybody knows that this is the most common way to negotiate. However for veteran investors, this is only one of the numerous ways to seal the deal with the lowest possible amount. So what are some other ways to do so?

1. Present an offer of a peculiar amount, such as $158,904. This way the seller would get the impression that you somehow know something that he does not. He may think that you know the ropes of real estate very well and was able to calculate for something that gave you that amount. It could make him think that there is a good reason for offering that price.

2. Act as if you know very little about real estate. Ask a lot of questions, even the ones that are easily answerable. Ask for help in clarifying some of your concerns. This way, you do not reveal the level your real estate knowledge, as there are some sellers who do not easily budge especially if they feel that they are dealing with a smarter guy who might be trying to get the best of them.

3. Make the seller think that you do not have total control over the decision of buying the property or not. You can say that you will have to check with your husband or wife. It is much easier for the seller to understand that you could not do something instead of understanding you would not do something.

4. Refer to past situations. Tell the seller about how your parents bought their house. If you are giving an unusual offer, the seller would feel more confident since the method that the offer is being presented by has been done in the past.

5. Ask for items that you know you do not want. If you tell him, “I think I don’t really need the chandelier, if I could get the price I’m asking for,” then you will most probably get the price you want.

6. Act hesitantly. Hesitating would urge the seller to think of other ways to encourage you to buy the property. Once you do go for the offer, he would feel as if he actually won something.

7. Make it seem that he was the one who thought of the idea. “Are you suggesting that we close later, and just put out more earnest money? Alright, we could go for it your way, then. I will just require…”

8. Make sure that you get a yes from the seller before the offer. "Let’s say I pay your asking price, but I get my terms? Is that fine?" Even if there would be some changes, it would be a bit difficult for him to decline later on to an offer that he already agreed to, more or less.

9. Make sure that you flatter the seller. Flattery has given a lot of investors great deals in real estate. Of course, if the seller likes you, then he will more likely be able to obtain a better deal.

10. Disregard the problems first and work on the factors you agree on. After you take care of the agreeable points, you will both feel that the deal is sealed and it would be hard for the seller to let a couple of issues be the reason for the deal to be lost.