HomeVestors Knows That Negotiating A Real Estate Deal Takes Practice And Knowledge

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Investors need to be excellent negotiators to convince sellers to sell their properties at steep discounts.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that negotiating a real estate deal is as simple as negotiating anything else in life.  The process involves confidence, knowledge and an understanding of where the profit line lies.  Investors who search for sellers who are desperate have greater bargaining power and these individuals should be targeted before all others.

Those who negotiate a real estate deal should always ask for more then what they expect to receive.  Occasionally, this offer might be accepted on the spot, but the real reason to ask for more then what is expected is to allow for negotiating room.  This takes practice and requires an understanding of who the seller is as a person.  The important thing to remember is to leave the communication lines open and give them a reason to make a counter offer.

For instance, an investor who values a property at $100,000 should offer about $60,000, even though the seller is asking $120,000.  When making an offer, give a seller the impression of flexibility and don’t be firm on this offer.  They should know that this is just the first number given and should then engage in the negotiating process by making a counter offer.  When making offers, politely explain why the property is worth less then what they are asking and encourage them to make a counteroffer.

This tactic is used when negotiating a real estate deal because it allows an investor to lower the perceived value of the property.  This convinces a seller that their property might not be worth what they are asking.  This indecision may allow an investor to convince a seller to sell their property for a price that allows an investor to purchase a profitable investment.

Sellers who eventually give in and accept a lower price may believe they had “won” the negotiation, as they were able to talk an investor up on the price.  For instance, based on the previous example, a seller is able to sell their property for $80,000.  They believe that they were able to convince an investor of the houses’ value and get them to accept this price, but all along an investor was shooting for a price in this ballpark so both parties leave the negotiation satisfied.

Negotiating a real estate deal requires that an investor know what value they are willing to accept and convince a seller to sell for this value.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.

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