Negotiating Home Prices

As a home buyer, learning to approach a seller is one of the most important steps in order to get a great deal.  You need to be one step ahead of them and utilize some buying techniques. The most common one is to present an offer lower than the one you can actually pay.  However, there are a couple things you can try before making an offer. Lead the conversation in such a way that the seller accepts some terms because then the seller will find it very difficult later to disagree on something he has already agreed on. Also, handling the negotiation in a friendly way will increase your chances of getting a good deal.

You can also play some “mind tricks” on the seller. Showing yourself doubtful is one of them. This will encourage the seller to motivate you and feel that he’s moving forward in the negotiation.  Another one is to ask for things you don’t want, so then you can pretend you’re giving them up as long as the seller offers you a better deal.  Also, you can offer a small amount so you’ll have the seller wondering if you have noticed something he hasn’t, and that you know what you’re talking about.  On the other hand, playing dumb can help you too, because when the seller thinks you know nothing about the business, they will lower their guard.

Make somebody who’s not there be a part of the negotiation. Say you can’t make this decision on your own; or that you have a previous reference.  For instance, you can say that a friend bought a house in a certain way (so why can’t you do it that way too?). It’s also important to establish the agreeable points one by one.  Doing this will make the seller feel he’s about to close the deal and that it’s not worth it to loose a sale over a few disagreements.

Negotiating a house buying deal with these points in mind will help you land the deal you want.

Having said all these things, the thing that you should remember the most and plan your negotiations around is: Do not fall in love with the house. Fall in love with the price you will need to buy the house to allow you to sell it quickly and make a profit.” When you fall in love with a house that you want to buy to flip, you will tend to overpay. Remember this is not a house that you will build your life in, this is a house that you want to fix up and flip quickly for a profit. So the price you will negotiate is imperative. Keep you emotions out of the negotiations! If you can remember that, you will save thousands of dollars and end up making thousands of dollars when you flip it!

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