By Julie Broad
When negotiating to buy a property, I increase my chances of getting the exact deal I want by giving the seller options.
One way I do it is by negotiating the financing terms I want at the same time as I negotiate price.
Let’s say I wanted to buy a certain property for $200,000. If I can convince the seller to provide financing at a reasonable rate, I’d probably be willing to pay 5 percent more just to avoid the hassles and fees involved in finding and securing a lender. To avoid having the seller say “no” to my offer, I would say something like this:
“The best I can do is $200,000 if I have to go to a bank for financing. They’re going to require me to prove the rental income, pay for an appraisal, and do a ton of paperwork to qualify for that loan. So if you’ll accept my $200,000 offer, I will close on the date you want.
“But if you are willing to provide at least 70 percent of the financing, I can offer you $210,000. And I would still be willing to close on the date you want.”
By giving my seller these two options, I make him feel like he is in control of the outcome of our negotiation… even though either one would be a great deal for me.[Ed. Note: For more insider strategies for getting started as a real estate investor, sign up for real estate expert Julie Broad’s free monthly newsletter.
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