There are many ways to make money in real estate. One way is getting a bargain and turning it around quickly to sell. Your profit is the difference between what you paid, any costs or repairs you incurred, and the price paid by the buyer.
In fact, the profit on a property is often made at the time you make your purchase. You can't expect success if you pay too much for a home.
So, imagine you found a bargain, closed the deal, made repairs, started marketing and now you're waiting for a buyer. What is your definition of a "good" offer?
- Getting more than the full asking price?
- Not paying any closing costs?
- Selling your property in one month of less?
- Selling "as-is" without any expensive repairs?
- All of the above?
It would be great if those kinds of offers came across your desk everyday. But don't be disappointed if they don't because every offer is a good offer.
An offer means that someone is really interested in your property and is interested enough to make a small commitment and put their money on the line.
As a real estate investor, the first thing you have to keep in mind is that there is no such thing as an "insulting" offer. It's just less than you hoped for. Getting emotional during the process never works in your favor.
You have no idea about the true motivations of the buyer or how much they are willing to pay for the home. And the sales price is just the starting point.
There are many different things you can negotiate over. Some of these are closing costs, repairs, time of closing and financing options.
When you come back with a counter offer, it is rarely a good practice to make it a "firm and final" first counter offer. After a couple of back and forth numbers, you might then tell the buyer you are at your limit. Remember that just about anything is negotiable.
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If you want to understand the offer and counter-offer process better, you can find guidance, resources and strategies in "Real Estate Investing" available only at http://www.CarlylePublishing.com And, did you know that the offer and negotiation process will be different depending on whether or not a realtor is involved in your sale? Find out which is best for you in "Real Estate Investing." Your step-by-step walkthrough for building your wealth with real estate can be yours in minutes. I'm Henry Behrens, real estate investor and author and I'd like to help you become successful, too. Article Source: http://EzineArticles.com/?expert=Henry_W._Behrens |
