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7-Proven Buyer Techniques

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7-Proven Techniques You Can Use When Making an Offer to Buy a House 

1. Appeal to the interest of the seller:

Learn the personal and financial motivations of the seller. Consider their key concerns. Position your offer to alleviate those concerns and help solve some of the seller’s most pressing problems. 

2. Make your offer personal:

Introduce yourself to the seller by writing a personal letter that will serve as a back-drop to the offer. Make it heart-felt and genuine. Help the seller see you in terms of a “friend” rather than an adversary. This single technique almost always softens the negotiation stance of the seller. 

3. Make your offer unique:

  • If you have the cash, use it to demonstrate how serious you are. If the average earnest money deposit is 1% of the transaction value, then double it. Make sure you have a good strategy for managing the contract contingencies in order to reduce your risk of loss.
  • If the seller is motivated, put the deal on the fast-track to close in two-weeks or less. This technique requires advance planning and preparation on your part. Many loan packages can take up to four-weeks to process.
     
  • Offer terms under which you would allow your earnest money to become non-refundable. If you’re confident in your ability to perform, use it to assure the seller that you will not be walking away at the eleventh-hour…the seller’s biggest fear.

4. Demonstrate your perspective:

Help the seller understand the perspective of your offer by demonstrating a thorough understanding of the market. Contrast the offer with similar transactions and reinforce your opinion with recent statistics. Provide a written report that the seller can review personally rather than rely upon the interpretation of their agent. 

5. Return the favor:

Reciprocity is a powerful, intuitive principle. Look for opportunities to negotiate win-win outcomes. 

6. Establish commonality:

Look for things that you and the seller may have in common. Use this connection to create a bond beyond the transaction. Be careful to avoid framing associations that would have anything to do with a protected class status under the Fair Housing Act

7. Create trust

There is an inherent anxiety between buyers and sellers. Even though both sides need each other to further their goals, the potential for mistrust is enormous. Perception gaps and misunderstandings can lead to tension filled negotiations and derailed transactions. Be as clear and straight forward as you can. Communicate with the intent to eliminate any potential for misunderstanding.

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