In this field, enter the purchase price.
Top Purchasing Tips:
- All sales are negotiable. If a purchase price results in an unfavorable profit outcome, re-negotiate.
- Before you visit a property, decide your margins. Include what you are willing to spend on rehab, DOM, Realtor commissions, and other costs.
- Assume others have looked at the property as well. Then ask yourself: “why didn’t they buy?” – it is a quick way to take emotion out of decisions.
- Realtors are sales people. Great realtors can sell a box under a bridge, so do your own homework on comps, etc.
- Know contracts and contract dates – such as your inspection period and closing date. If you get pressured into non-standard periods, the deal most likely has problems.
- Be familiar with addendums.
- Know the area.
Your success in negotiating an acceptable purchase price is directly related to your preparation.
Know the Seller’s motivation
Negotiating with a seller can be intimidating, even to professionals. Confidence is key. Realize that sellers are trying to weed out serious from curious investors. If they hear you are looking at a property as a non-primary residence, alarm bells go off with most sellers. Can you pay for the property? People see late night shows and attended seminars where they were told “creative financing” is a way to flip properties. You would be surprised how many times this results in sellers facing an argumentative client when they are told things don’t work they way they thought. Don’t be surprised if sellers are reluctant to take you serious.
Most important to a seller is if you are a serious buyer. Your presentation (clothing, grooming, not showing up in a rusted out car), confidence, mannerisms and professionalism all effect a successful negotiation. Scripts can help you be more confident.
Need more information? Everything can be obtained by searching online. This site is not specific to a particular way of flipping, it is common “industry” standards and practices only. But you are welcome to contact us – we are a members-only flipping and funding company.
Keystone Funding Network