Investing in real estate can help you grow your wealth and diversify your portfolio. If you opt for a rental property (short- or long-term), it could also be a source of passive income.
But it’s only a smart purchase if you choose the right property and pay the right price for it.
Are you considering investing in additional real estate this year? Here are some negotiation tips to help ensure that you’re positioned for success.
- Do your research. Do you know what other similar properties are going for in the area and understand the nuances of the local market? Details like these can help you determine where you might have grounds for negotiation.
- Build a rapport with the seller. Playing hardball is one way to go, but negotiation can be easier if there’s mutual respect and shared interests. Try to find some common ground with the seller, which could give you an upper hand over other potential buyers.
- Stay flexible. There will likely need to be some give and take if you want a good deal, so be willing to budge a little on things that aren’t deal-breakers. Keep in mind: The sellers probably have deal breakers of their own.
- Make a good first offer. Don’t go into negotiations with your lowest offer and expect a warm reception. Start with something reasonable — an offer with wiggle room for both parties.
Having an agent who’s well-versed in real estate investments on your side is critical, too. We can work together to vet deals and ensure you make smart property moves.
Reach out for help with your next investment.
