From a distance, every property looks like an amazing one. You see a photo and think that you are looking at a veritable palace that is available at a steal price. However, as an investor, you need to think business. You need to look beyond the proposition and see what is really offered as part of the real estate deal. This is why Al Hartman has decided to list the 10 key things to know about real estate deals.
Understanding Real Estate Deals
No matter where in the country you are, be that Houston or Washington DC, you have to understand that everybody wants to make money. If you are an investor, you want a property for an as low a price as possible, so you can sell it for more and make money. If you are a seller, you want your property to sell for as much as possible, so that you have more money in the bank. There is a disconnect between those two, and it is about more than having the faith that all things will work out well. Rather, you need to learn how to negotiate, which is what the 10 commandments according to Al Hartman are all about.
Al Hartman’s 10 Commandments for Negotiating a Deal
- Remember that your goal is to offer something that is better than an alternative offer. You shouldn’t try to “win”, you should try to be better than the others.
- You have to set yourself apart as a problem solver. People sell properties for a reason, and you need to make sure that whatever you offer them is exactly what that particular reason needs.
- You must know what your limits are, and you can never exceed those, even if it means walking away without a deal.
- A real estate deal isn’t just about negotiating price. It is also about things such as what is inside the property, the land around it, and more.
- You must learn to be flexible, but you can never be emotional. If you find that you are getting emotional, where all you think about is that property and you panic at the thought of not closing the deal, you need to take a step back. You’re too involved.
- Remember that if you have options, you have power. And you always have the option of walking away and finding a different, better deal.
- Remember that your seller has options, which means they have power too. You need to be able to find that balance between the two of you.
- Make sure you are never confused and make sure the other party isn’t confused either. When people get confused, they end up saying no.
- Always be ready to explain why you do anything. Explain why your offer is fair, why your offer should be accepted, why you want the property.
- Learn to negotiate properly and take it very seriously.