Home Buying & Selling 4 Things You Can Negotiate Besides Price When Buying or Selling a Home

4 Things You Can Negotiate Besides Price When Buying or Selling a Home

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of wholesaleThere is a big misunderstanding that price is the main problem in negotiations. Today, I would like to offer some important areas during the negotiation process to help you secure a deal.

Motivated sellers aren’t just motivated by money. Situations and circumstances also play a major role in accepting or rejecting offers.

I talked to hundreds, and perhaps thousands, of sellers along the way. As a real estate investor, I can confidently say that my team has a lot of transactions and secures transactions that are not related to price. In the process of negotiations, there are several areas that we strategically build to make the deal attractive to both parties.

Before I explain everything, I’d like to add some context to what I’m referring to.

Recent transactions that have nothing to do with price

As a virtual wholesaler, we have been marketing in multiple cities. Chicago happens to be a hot market for us.

I personally got a call from a woman who wanted to sell because of her husband’s death. She left home for her memories and she now lives with her family.

During the call, I admitted that the house was in good condition (Here are some picturesAnd, unfortunately, we informed her that our offer would be far below what she was looking for. I said she should consider listing her home with a realtor. I ended the call, but she didn’t think she would reply.

Surprisingly, I got a call about four months later. Asked if I was still interested in the house, it was a seller again. I kindly reminded her of our previous conversation and her offer, but she insisted that I meet her at the property.

During the walkthrough, I was even more surprised by the condition of the house. She recently installed new windows, refinished the floor and added a new roof. And, to name a few impressive qualities, it was all in a double compartment.

She informed me that she knew she was giving up her house, but because of my honesty and transparency, she was willing to work with me. All she asked was that we would pay the closure fee and reduce the closure of the escrow time frame. She wanted to speed up the sale because she intended to spend money to buy another property so she could have her own space again.

We have agreed and completed the transaction. We are now Whole tail Clear trading and almost $ 100,000.

Related: 10 tips for negotiating like a pro

Areas to focus on during negotiations

I wanted to give you the above inside story because too many investors are involved in money, which is the main bargaining factor … sometimes when it isn’t. (There wasn’t much need to negotiate for this deal, it just ends the escrow date.)

Other areas to negotiate are:

1. Serious money

This is an important area for negotiations. As some believe, full-fledged deposits are not standard ($ 1,000). Use higher or lower deposits, depending on the seller. If the seller is looking for a higher price and cannot achieve it with our offer, it is advisable to increase the full amount to prove that the transaction is vested.

Full-scale refunds are possible, but sellers will loosen negotiations if they are willing to increase their deposit.

2. Escrow closure

Closing faster (as in the example above) reduces some of the stress and uncertainty of the sale.

The seller can get the seller’s reflection. They may be willing to accept lower purchase prices if you limit the time they spend pondering their decisions.

Thumbtack, calendar page marked in close-up

3. Rehabilitation

Negotiations should not be a win-loss proposal. It’s a good idea to clarify this first, especially during rehab evaluations.

Negotiate a rehab number. Let the seller know that there is a cheaper job.

However, some corners cannot be cut. If you negotiate in good faith, this can break the barrier.

Related: 6 effective tips to ensure your offer is accepted

4. Title company

This may seem ridiculous, but some sellers prefer to sign a deal with their title company. Inform the seller that it is common practice for the party paying the closing cost to determine the title company.

However, another option is to provide the seller with the convenience of meeting them at a location of choice for the escrow officer or mobile notary. This is a big win for the seller.

Conclusion

These are some areas around negotiations that can reassure the seller. The more you offer, the more the seller understands that it is a mutual agreement between the parties, not a war.

Don’t worry about the price. Instead of negotiating the offer amount, we offer an alternative that wins for the seller.

Are there other areas for negotiations I didn’t mention above?

Add it to the comments section below.

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