How to negotiate down a deal

[Brian Malesa]

Hey Everyone - With the current market conditions I see a lot of people talking about "negotiating deals" what are your strategies for this, and other than trying to drive down the price of the home, what else do you do?

[Michael Dumler]

@Brian Malesa, honestly we sometimes just lay it all out on the table for the seller to take into consideration. When negotiating, we'll disclose how much it will cost to repair/rehab, what our interest rate is, what our holding costs look like, etc. We then essentially deliver the fact that any other buyers are likely coming from the same position, so rather than continuing to market the property for longer, it's best to lock the deal up and go with us. To be clear, this was not a viable strategy 5-6 months ago when the market was seeing crazy demand. Your negotiating tactics are dictated by market conditions in my opinion. While there are certainly other terms involved within the offer, it always seems to come back to price reduction or having the seller cover X% of closing costs. Hope this makes sense and helps!