A real estate investor may be interested to know that the Washington Post recently tackled how people involved in real estate investing should go about negotiating for new properties.
In the article on Sept. 5, the newspaper wrote directly to you, the real estate investor, offering a few sound pieces of advice. There are many ways for a real estate investor to learn from their mentor and coaches how best to go about coaching, so take these simple steps as a good start to learning more about the subject.
Real Estate Investor: Be Kind
First, the Washington Post wrote about what a real estate investor should have in terms of attitude. Kindness counts, said the newspaper, stressing that if you are a real estate investor “Don’t bully, but also don’t be bullied.”
Said the Post: “Remember that you have something they want and vice versa. I will walk away from a deal where I know I’m dealing with a bully. I know that a real estate deal has far too many twists. Something unexpected will almost always come up. When the unexpected arises you have to renegotiate. You might be wasting your time if you start down a path with someone who is going to be a constant adversary. You should be willing to walk away from any property.”
Part of the way to ensure you don’t come across as overbearing is to make sure as the real estate investor, you are doing more listening than talking during a negotiation.
When you approach someone as a real estate investor, make a point to not say too much. Whether it be 10 seconds or 10 minutes, make the other person break the silence. You’ll be surprised to find that they will see your silence as anger or disappointment, and will break the silence by revising their offer or offering a concession.
Real Estate Investor: Play it cool
The Post also instructed a real estate investor to play it cool when it comes to describing a property.
“Don’t tell the seller his home is ugly,” wrote the newspaper. “This unfortunately happens all the time. A buyer goes to the seller and lists all the things that are wrong with a property and then makes an offer to buy. It’s insulting personally and intellectually. You’re insulting the home that a person has made for his family. You’re insulting their intelligence because if the home were so unappealing then you would not be offering to buy it.”
This speaks to the power a real estate investor can gain by having as much information as possible. By knowing what needs to be fixed, how much it costs and the time it will take, a real estate investor comes to the table armed with a better time table and profit-and-loss idea than the seller.
Finally, the Washington Post stressed to play nice: “Play nice, remembering that you are trying to make a deal. You can’t demand your way through negotiations. I’ll regularly pay a seller far less than what his or her property is worth but I never try to bully him or her into a deal. I offer what I can pay for the property given the situation. If my offer meets the needs of the seller, then we make a deal. I often try to make up for the low price by being accommodating in other ways such as letting the seller choose the closing date, by taking the property as-is, by taking care of clean up after closing, etc. It’s surprising how far a small gesture will take you. I’m always nice, considerate and professional,” the newspaper wrote.
This is also key. Remember that when you are a real estate investor, you should park your emotions and remember that you are in a business transaction. As a real estate investor negotiates they need to keep their eyes on the ultimate prize – a good negotiation at a great price which leads to profit and more business.