Buying investment property is something that takes time and practice to acquire. So are negotiating skills, but if you practice these along the way you’ll be one step closer to financial independence. These skills are very much needed especially if you choose to venture into real estate investing. Consider these personal financial planning tactics.
Be prepared to look elsewhere: There are a lot of people who make the mistake of setting their heart on a property. This makes them rather beholden to the property which in turns translates into them having to shell out more prices for the property. In some cases (take into consideration how popular Houston investment property has become), the seller may also ask for a price that is rather unreasonable if he senses the buyer’s eagerness to buy. It is always better to look at various options. If the seller sets unreasonable and ridiculous conditions and a high price, you can thank the agent and look at other options. This can work as a ploy, because if the seller changes his mind, he can use the same agent to call you back and give you a better or more reasonable offer.
Ask for more than what you actually need: This is an unwritten law and unspoken aspect about negotiations. Those who start at their desired position often end up with less than what they want. Some of the items you can bargain for when buying a property investment are to ask for payments for inspections, things like title insurance and also features that you do not really want. If you ask for this extended list, you would find that you can trade these non essential items for some important features. On the other hand it is possible that you could get some extra features thrown in for good measure. This depends on how well your agent negotiates and how keen or desperate the seller is to sell the property.
Meeting in the middle is not mandatory: There are some folks who want to expedite negotiations, which is why they cut negotiations midway and settle for something in the middle. This is okay for those whose budget expectations are met as it helps them get to the deal with extra haste. But for others, there is no point to fall into the bait set by the agent as it may mean conceding ground on negotiations and getting less than an optimal deal. Do take time to consider all aspects of the deal, during which the seller can re-think his position during which time you can also consider if you want to settle for a deal mid-way. If the seller is desperate, this time could hang heavy and the seller would be more flexible in terms of agreeing to conditions that suit the buyer’s needs better.
Always get something in return: There are some seemingly inconsequential concessions the seller may request. This may be in the form of a few extra days that the seller wants to use to pack up and vacate the house. This may be okay with you, but you need to ensure that you get something in return. The fact of the matter is that you are investing in Houston TX and if you give things away for free, you may appear as a person easily manipulated by the seller. This could open up a situation where the seller loses respect for your interests and tries to take undue advantage of your consideration.
Some extra points: Even if the deal appears okay, never accept it at the word go, because it is human psychology to disbelieve the price being quoted by the seller. This is not only in the case of realty but also in other cases and instances involving buying and selling. It does not make sense to fall for the first offer. If you have not given your best to the deal, you would not expect that the other party would also give the best offer at the first instance. In some cases you may like to get the opinion of a third or an impartial party. Good agents try to meet all the concerned parties at the deal. But if you want some time, you should say that the matter needs to be discussed with your wife or perhaps you need to get the view of your business partners on the deal before signing on the dotted line.