5 Tips For Negotiating Lower Real Estate Prices

Think that just because it’s a buyer’s market, you’ll be able to land that great property with ease? Think again. Prices may be down, and marketing times may be longer, but attractive real estate that’s priced right is bringing competing offers. If you want to score a truly discounted real estate investment, here are six tips to help you land the right property at the right price, regardless of whether you’re a homebuyer or a landlord looking for a rental lease property.
1. Get Pre-Approved for a Mortgage
When you make an offer to buy a property, your offer is instantly more credible and attractive to the seller if you can provide a pre-approval letter, signed by your lender, showing exactly how much you’re approved to borrow. Many sellers have been burned by prior contracts falling through, due to unqualified buyers, and these sellers want as much assurance as possible the next contract they sign will actually settle, even if it means a lower sales price. It’s worth noting that a pre-approval is not the same a pre-qualification, which is next to meaningless to a seller.
2. Choose an Aggressive Real Estate Agent
Real estate agents’ primary service to buyers is helping to secure the best possible deal on their purchase. Few real estate agents are worth their salt in this arena, but the good ones are aggressive negotiators, who will help you wrangle deep discounts on your purchases. For real estate investors looking to buy a rental lease property, work with an agent who specializes in investment properties in your target area, as good ones will have a large network of wholesalers that they work with to help investors find deals not even listed on the MLS.
3. Research the Seller
Why is the seller selling? Are they pressed for time or money? Where are they moving? The more you know about the seller, the better you can sculpt an offer that will strike a nerve with the seller. For example, if the seller needs to close within a month because they’re already under contract to buy a new home, they may Seller Contingencies Real Estate be receptive to a lowball offer that has a guarantee to close within ten days. A final point here is that good real estate agents will try to extract as much information as possible as early on, because once it’s apparent that you’re interested in buying, the seller’s agent will clam up and enter negotiation mode.
4. Sweeten Buying A House First Time the Deal
As mentioned above, when you discover what’s most important to a seller, offer it to them. There are a few universal sweetening factors however: first, people are far less likely to say “no” when asked for anything in person. Second, remember that cash is king; everyone loves cash, and while you may not be able to make a cash offer on the property, you can offer to put down a higher deposit on the home, and better yet, to hand the seller the deposit in actual cash. Of course, you’ll want to make sure that cash doesn’t stay in the seller’s hands, and that it ends up with the seller’s agent to hold in escrow, so that it doesn’t disappear.
5. The Power of Love
People grow attached to homes; it’s human nature. Sellers want to make sure that the next owner will cherish their home as much as they have, and will often accept a lower offer if it means the home will be maintained the way it has been and not gutted and “ruined.” Make sure the seller knows just how much it would mean to you to be able to love and care for their home.
Now more than ever, buyers are in a position to purchase real estate at huge discounts, if they’re willing to sink a little bit of effort into the deal. Whether you’re a homebuyer or an investor looking for a great deal on a rental lease property, avoid the lazy route whenever possible, and in no time you’ll have the perfect property under contract for the perfect price.

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