Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on how to negotiate real estate with sellers as a buyer.
Before you start negotiating real estate, its essential, as real estate investors, to first build rapport with your seller, you want them to develop a personal connection to you. You can do this by asking…
– personal questions – How do you relate to them?
– If they are a Real Estate Investor
– Do you live around here? How do you like it?
– How long have you been investing for?
– Do you have any other properties for sale? (They like this one)
– If homeowner – How long have you lived here?
– How many kids do you have?
– Does your family live close by?
– Where are you from?
– Be friendly
– Give compliments
– Ask and Answer questions – Is there anything you would like to know about me?
– Be polite, but assertive
– credibility kit – http://youtu.be/vwyMAqNngrc
– prior deals
– seller script- usually for phone calls
– consistent, easy
– good for people not comfortable speaking to people
– Property sheet – helpful remember to ask important questions you might forget during casual conversations.
– Price – is that the best you can do? (net offer best)
– Terms – if they need cash, do they need it all now, perhaps some l ater,perhaps payments, perhaps payments start late
– 24/7 Access – must have access to get prospective buyers, inspectors, appraisers, etc. into prop, 24/7 depends on unoccupied
– Closing Time frame – 30 to 60 days – faster close equals lower dollars, closing time relates to price, flexibility, options, etc.
– Closing Costs – Very important – don’t want seller assuming things at closing – Here are the main items…
– title search fee – seller usually pays to prove title is clear – no liens or judgments
– prop tax – most accepted method is that the seller pays for the taxes up until the date of closing and the buyer pays for tax responsibilities thereafter
– sales or transfer tax (if applicable) – some states have additional tax – will you eat the cost to get the deal closed?
– attorney fees – charged to the buyer and the seller separately – $150-400
– Closing Location – Ideal for it to be your attorney or title company – more favorable terms at closing
– online – The Art of Negotiation, real estate negotiations, seller negotiations
– plenty of negotiation training course
– library for books and tapes
In conclusion, negotiating real estate investment deals is a critical skill every real estate investor must possess. It can either add or subtract thousands of dollars from your profits. Like everything else in real estate investing, it gets easier with practice.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.