Negotiating Techniques

After Testing Hundreds of Opportunities, Only a Few Created a Solid Six Figure Income. Click Here To Learn More!

Home Based Business Opportunities From Around The World Plus Candid Opinions On More Than 250 Different Opportunities.

40 Years Of Business Experience To Help You!

You Be The Judge

$600.00 NEW MONEY MAKING COURSE FOR YOU! Click Here

What I am about to share with you now are the five key strategies that I have successfully used over the years to get more of my offers accepted. There are many more ideas that could be incorporated into your game plan and I would encourage you to seek out other books on this subject. And of course, each deal is unique. But here are the common sense strategies that I have found to be the most powerful....

(1) Never Offend the Seller - If the seller does not like you or does not trust you, a satisfactory deal will not happen. It's easy, in the heat of the battle, to fall into the trap of making personal remarks...particularly if this is initiated by the seller in reaction to your offer! But with everything you have, resist the temptation. It will sour the deal quicker than any other factor. Be prepared going into your meeting that this may happen and visualize ahead of time, your cool and calm non-reaction. Be polite and look for ways to diffuse the tension.

(2) Save Price for Last - in almost all of the deals I have done with private owners, price is the major sticking point. Mention your offer price upfront and get the owner's initial reaction (usually negative). And then agree to "come back and discuss price later." Try to first find an issue you can agree on, like closing date, or inspection or trash removal. Talk it out and try to reach an agreement. Do the same with every other negotiable issue like closing cost split, personal property (appliances), financing, etc. Now, you've shown each other that you can work together and it's time to deal with the price issue.

(3) Offer All Cash If Possible - nothing is more powerful in a real estate negotiation, particularly in a slow market on a rehab property that a bank won't touch, than an all cash offer. An all cash offer is powerful because it is final. No seller financing to haggle over and no future payments to worry about; no concern about the buyer getting turned down for a loan at the bank (assuming a bank would loan on the house). Go to closing, pick up your check, and you're on your way. Over and done with forever! Make sure (if it's true) that the seller understands that there are only two financing choices - all cash or some combination of cash and seller financing. Because of the condition of the house, banks will not lend money unless all the repairs are made, in advance, by the seller. Is the seller willing and able to make these repairs? You advise the seller that you are in a position to offer all cash, and spend a lot more money on repairs, but only if you can make a profit on the deal. Show the seller the list of repairs you plan to make and your cost estimate. If the seller questions your profits, you should just point out, "What's the point of me making all these repairs if all I get back is the cost of the repairs?"

(4) Be More Flexible on Price if Seller Financing is Involved -- if you're asking the seller to carry-back some or all of the financing, even for a relatively short time period as in a split funding deal, ease up a little on your bottom line price. After all, you are saving some big bucks compared to what a bank or loan broker would be charging you in points. For example, if a loan broker is charging you 10 points on a $50,000 loan amount, that's $5,000. If you're saving that much through seller financing, you can afford to give some or all of that up in your final price negotiation. Don't step over dollars to pick up pennies, or worse yet, lose the whole deal!

(5) Hold Back Your Best Offer - with private seller's, don't make your best offer, with your first offer ( a government bid situation is different). Seller's expect to do some haggling and view your first offer as a trial balloon. Don't disappoint them! Plan on one or more counter-offers. These give you the opportunity to show good faith and movement towards a resolution. Just don't give up your chips too soon, and don't give them up without receiving something in return.

Purchase Agreement Forms

Be aware that there are literally hundreds of "official" or "standard" purchase agreement contract forms. The truth is, there is really no such thing! To be sure, your real estate agent will have forms that "everyone uses" in your community. But that doesn't mean that you have to use that particular form.

The best advice I can give you on this is twofold: (1) read and understand every word in any contract you are using and (2) seek professional legal advice if you don't understand the contract fully or if you intend to use a "non-standard" agreement. Over time, you will likely develop your own pro-buyer contract that you will use, particularly with FSBO’s.

Make Two Offers to Close More Deals

This is one of the most powerful negotiating techniques ever invented! Once I discovered how to effectively use this method, the percentage of my offers getting accepted skyrocketed.

The essence of the method is this -- you bring to the negotiating table two signed offers. One for all cash, with a heavy price discount and one with some form of owner financing, with less of a price discount.

As an example, I recently made two simultaneous offers on an older 3 bedroom, 2 bath pueblo-style house in poor condition -- one offer was all cash and the other a split funding with owner carry-back financing.

This was a FSBO that was free and clear of financing but the owner knew he had to sell at a discount because the house was in such bad shape. He was asking $55,000. I estimated repairs at $7,000 and estimated the after repaired value at $73,000, based on recent sales in the neighborhood. I sat down with him and presented the following two offers:

(1) $32,000 all cash

(2) $38,500 split funding; $5,000 downpayment with the $33,500 balance due within 9 months with no payments or interest. A first mortgage if favor of the seller would be recorded on the property with these terms.

I already had a private lender who would loan $36,000 net at closing if the cash offer was accepted. This would also give me $4,000 to use for repairs. I was hoping he would go for the all cash offer because it would be a no money down (none of my money) with cash at closing deal for me.

The owner really struggled with the two choices. First, he wanted more money. He had some pressing medical bills and was recently divorced. He also wanted to move to Colorado and start a new business. We talked for about two hours. He hemm'ed and haw'ed and couldn't make a decision. Finally, I said, "Look, the offer gives you 24 hours to decide. Think about it tonight, and we'll get together tomorrow and wrap this up."

We got together the next day and finalized the deal. He went for the split funding deal but I had to make some changes to make it fly. I would give him $42,500 with $7,000 down and the $35,500 due in 6 months. But he had to agree to put his $35,500 mortgage in second position, behind a $15,000 first mortgage from my private lender. Done deal - he was happy and I was happy! And I still got a no money down, cash at closing deal!

The psychology behind the two offer technique is awesome. It eliminates the "...here's my offer, take it or leave it..." approach by stimulating an atmosphere of choices. It presumes that an offer will be accepted and focuses attention on alternatives. It's kind of like the new car salesman who says, "We have this model with either standard or automatic transmission. Which would you prefer? Do you like the red or the green?"

Playing the Numbers Game For Fun and Profit

Did you hear about the guy in California who sat down with the MLS book and made 1,500 offers on houses in his area? As the story goes, he actually got 40 offers accepted. This is the ultimate numbers game but not one I would suggest you playing.

Making an offer on a house is a serious business. People's financial lives are at stake, so it's nothing to be frivolous with. Submitting 20 offers at one time, over the fax, is a good way to become a persona-non-grata! Another good way to get the real estate community upset with you and your broker!

A realistic goal would be to get about one in every five to seven offers accepted. This of course will depend on who you are dealing with (private owners or institutions) and how well you do your homework. And it will depend on your ability to get in front of the owners to personally negotiate the deal.

You are now armed and dangerous! You have the knowledge and skills to go out and negotiate the deal of a lifetime. You know, the one that will come along every few days or so!

By Kevin C. Myers.

Learn about Currency Exchanging and Sports arbitrage the hottest unknown businesses on the Internet. Earn thousands monthly with very little risk and with only about 30 minutes per day from your home. My mentor Matt Gagon says, "this is an opportunity of a lifetime." For more information on his program click here.

Get Jan's Investment Secrets For Free!

Subscribe to Jan Gaudina's FREE e-zine; it's full of hot tips and techniques on making money with real estate as well as other money making opportunities. We're giving away hot money-making tips - but we need to hear from you today! Simply enter your e-mail address in the box below and click "Send Info" ($129 value - FREE for stopping by. Read a recent issue.

Special Offer: Subscribe now & receive this guide, "Grow Your Investments to $2,000,000 Or More In 5 Years" or Less! + other investment secrets for FREE!

Yes Jan, I'm tired of being a slave to a job (just over broke) with all the empty promises … and I'm ready to be my own boss building a lifetime stream of income. Please send me your free newsletter today.

WORK WITH A MENTOR AND LEARN THE SECRETS OF HOW TO EARN $5,000, $10,000, $15,000 A MONTH OR MORE WITHIN 90 DAYS!

WE HAVE TESTED HUNDREDS OF OPPORTUNITIES AND TWO OF THEM SHOULD CREATE A MID SIX FIGURE INCOME OR MORE FROM THE CONFORT OF YOUR HOME. CLICK HERE NOW TO LEARN HOW I DO IT, AND HOW YOU CAN DO IT TO.

Click Here Now!

Legal Statement | Privacy Statement | Delivery | Spam / Affiliate Policy | Links

AmeraDream Corporation

400 lakeshore Drive

Boulder, CO. 80302

Phone 303-575-1145

Fax 303-484-4595

For any information about our products, contact:

ameradream@aol.com