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Real Estate Investing: Getting The Best Deals

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By : Alex Oakley    99 or more times read
Sometimes it is difficult to have both parties feeling comfortable toward the possible end of a real estate deal. The seller wants to get the most money they can and the investor wants the lowest price possible to ensure profitability.

Having a good rapport with the seller will go a long way in accomplishing the feat of pleasing both sides. The more rapport you have with the seller, the more willing they will be to stay at the negotiating table to hammer out a deal. This will be especially true with owner financing. Many sellers are hesitant to try owner financing for fear of the investor backing out of the deal and them not getting their money. This is especially true in no money down investing. In traditional buying and selling of property, the seller gets a big check at closing. So one can see why a seller will be hesitant to try owner financing. So, with owner financing, rapport will be even more important than it ordinarily would.

Some investors think being "hardcore" and being stern will get the job done while other investors prefer flexibility. It all depends on personal preferences and the situation. Some situations will require more flexibility.

Finding the seller's lowest price

In some cases, you may be able to find out what the rock bottom price of a property will be through conversation. As the conversation continues and rapport builds, the seller will volunteer that they will take a lower price than they are asking. Often times they won't volunteer this information. This is where some sales techniques can help you find out what the rock bottom price would be.

The seller's realistic expectations

Try and find out what the seller will actually settle for. Some investors like to use the question "What do you realistically expect to get for your house?". The key word in that question is "realistically". Actually, real estate investors write a lot about using this phrase. You will see this written in real estate investing books. After all, this is where I got the idea. Often times the use of that one word will lower the price.

You could also do this by selecting a range. If the seller is asking $200,000 ask them if they realistically expect to get $190K to $200K. If they say yes then you essentially have lowered their price from 200 to 190. Of course it is not that simple. Lots of conversation and negotiating will probably go into this, but you get the idea.

No real estate agent

Many investors will ask the seller to lower their price by a few percent simply because the seller has no need for a real estate agent. If the seller was using a real estate agent, they would have to pay them commission. This is generally anywhere from 3% to 6%. There are several factors that go into the agent's commission so it can vary widely. It makes sense that the investor would ask the seller to do this. The seller would be saving that money that would ordinarily go to the agent. This works pretty well and you can actually get a bit of a decrease by asking the seller that simple little question.
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