Buying Investment Properties: Tips for Negotiating With Motivated Sellers
Property investors are aware that making profits in the investment property business involves skill in purchasing properties at a price below market value. When purchasing investment properties, the below market value strategy is the key to success. It is when you obtain investment properties at prices lower than their market worth that you can make real profits. Though the art of buying below market value properties and negotiating for bargains can be a little daunting, it is a skill that can be learned by anyone.
Property experts have succeeded on the basis of their negotiating techniques and skills in getting below market value bargains from motivated sellers. According to experts, there are three main aspects of negotiating that are very important in your attempt to strike a deal with motivated sellers; fact finding, problem solving and listening. When talking to motivated sellers, you need to make it your responsibility to help the sellers overcome their anxiety and offer solutions to their problems.
So, who is a motivated seller? This refers to a homeowner who is so keen on making a deal that he is open to giving large discounts so as to sell off the property and move on to other things. There are several factors that lead to motivated selling including illness, divorce, repossession or relocation. Motivated sellers are likely to accept offers for 30% or more below the current market value.
How to handle motivated sellers
When purchasing investment properties, you will want to ensure that you make a profit from every property you invest in. This means that you need to get a good price, so that you can purchase the property cheaply and then resell it at a much higher price. So how can you get the motivated seller to accept your price? The following are some techniques you can use to accomplish this.
- Do your homework and establish why the seller wants to sell the wholesale house. Figure out what the seller needs and wants. Pay attention to other motivating factors. Besides pricing, there could be other issues such as buyer possession or owner financing.
- Consider making a very low offer at first and observe how the seller responds to it. If he does not immediately make a counter offer, he might be willing to accept your price. However, if he makes a counter offer, it means that there will need to be more negotiations.
- Keep negotiating until the seller is unable to resist your offer for fear of losing the deal. If you play your cards right, you will leave the seller with little or no choice but to accept your offer.
- While you negotiate, be sure to inform the seller that you are also considering other properties. This technique, combined with other strategies, usually gives you an advantage when negotiating with motivated sellers.
By using these strategies in dealing with distressed and motivated sellers, negotiations are likely to work in your favor. Once you master the skills of effective negotiation, you will find that purchasing below market value investment properties will come smoothly.
If you’re looking for cheap rehab houses, handyman specials, or investment property be sure to join our buyers list today to get the jump on great rehab deals never listed with a realtor! We’ve sold over 250 houses over the past 10 years, none of which were listed on the open market. Don’t miss out on your next great rehab deal! Join our buyers list now at http://www.RoyalFrogRealEstate.com or http://www.CincyCheapHouses.com
Stephan is a freelance writer, who often writes about investment property and cheap houses .
Processing your request, Please wait....
