Real Estate Negotiations

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Whether you are the buyer or the seller, real estate negotiations can become a very complicated affair. Every real estate investor can spend hours coming up with the right offer or they can just throw one out there and see what happens. For some real estate investors, the second option works decently sometimes. The serious investor knows that this strategy will not work successfully all the time and uses a slightly different negotiation strategy.

The Game Plan

Start by doing your research on the property. Find out the history of the place, any liens or holds on the property, as well as anything else interesting you may need to know. The price and status of comparable properties will also help you to figure out how much the property is worth.

After you have done your research, determine what the value of the property in its current state is. Then, figure out what improvements or renovations should be made to the property in order for it to sell at the top of its market value. Some homes require very little improvement. Other homes require quite a bit of improvement. Knowing the extent of work a property will need will help you to adjust your asking price on the property.


A full-price offer with strong terms will make your offer appear like the best option over other offers. If the property is in tip top condition and requires no improvements, this is a great way to go.

A bottom of the estimated value offer with strong terms may be considered by the seller and accepted or counter offered. The terms may attract the attention of the seller, however, in most cases, the price will need to be raised in order to get the property.

A middle of the road price with strong terms is a strong possibility that is likely to attract the seller. If you are willing to compromise to reach agreeable terms and price for both sides, you are more likely to succeed.

Lowball offers are dangerous. They can confuse the sellers and agents, especially if there is nothing to substantiate the extremely low offer. Most of the time offers like these are ignored or passed up. If you get any response, it is normally not a happy one, and most sellers are not willing you let you make a second offer or negotiate.

Making a game plan and thoroughly considering what you can afford to put into a real estate investment property can help you be a more successful real estate investor. For more topics to help you be a successful real estate investor or to find out more about real estate franchise opportunities, visit us at

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