Real estate really is a very exciting and profitable business with many options for those who practice making offers, and considering all their options.

Real Estate agents and Investors leave commission and profits on the table by not negotiating when the time calls for negotiating.  Some fail to find the seller's base line price and do not make a good connection with the seller.

Sellers like to do business with people they like, with people they understand and can identify with. 

It is important to focus on the seller and their needs and to help them identify with you.  Let them know that you can solve their real estate problems by buying or listing their property.

As an agent or investor, it is important to take it slowly, to be firm and to make a trial offer and to connect with sellers.

AGENTS:

Too often agents list properties way too high.  They do so to secure the listing with the attitude that they can always come down later.  By the time the seller is sufficiently motivated to reduce their price; the property has become market worn and not attractive.  A professional agent will negotiate a price that will attract the most buyers very close or below market value.

INVESTORS:

It is imperative for investors to arrive at seller's base line price before making an appointment to inspect the property. 

The question that is often asked is, "How do I take control of real estate, how do I make an offer, how do I control real estate to list or buy it at a price that makes sense, a price that will sell a price that an investors can make a profit?".

Often, sellers will tell an agent or investor, "Make me an offer, and tell me how much my property is worth?  Make me a proposal".

DON'T DO IT!  Do not make an offer at any price! Sellers know what they want. They will sometimes insist that you make them an offer.  They are hoping you will offer more than their unrevealed price. 

What ever price you quote to the seller, will be the wrong number, the wrong price!  If you offer them more than they expected, you are over-paying or listing too high, if you offer them less, you risk alienating the seller closing off of negotiations. 

Sellers have two prices; what they WANT and what they NEED.

The Seller may want $200,000, but they can live with and need  $187,500.

Finding the seller's base line price is where your negotiations should start

If the seller will not reveal their asking price and insists on you making an offer, you need to collect more information; ask questions, accumulate more information about the property and the motivation of the seller.

What is the condition of the property, does it need any repairs or cosmetics. (I hope it does, this is a great basis for negotiations.)

1. Age of roof? (I hope it is old;  better for negotiations)
2. Are there any rental houses in the area? (Tells about values of the area.)
3. What are properties selling for in the area? (Let the seller help you with comps, compare these answers with his asking price.)
4. How much cash do you need above your mortgage?  What is that balance? (These answers will give you the amount of their equity and how their property compares to others.)
5. Are you building a property or moving out of the area?  (This will give you their time frame information.)
6. When can I look at the property? (Make an appointment to meet with the seller to inspect the property.)

A great agent will list a property at a price that will attract the most sellers.  Great investors will make Trial Offers in order to smoke out the seller's base line price.

Charles Parrish