Here’s a mistake to watch out for.

Here’s a big mistake many real estate investors make when they’re negotiating real estate deals. It’s called:

Splitting the difference

Here’s a hypothetical example…

…Let’s say you are a buyer who wants to pay $300,000 for a property and you are negotiating with a seller who hopes to get $340,000.

The mistake that many people will make is that they’ll agree to “split the difference” and pay $320,000. BUT, beware, often the first person to offer to split loses.

You see, if you were the buyer and you increased your offer to $320,000 it is unlikely that the seller will simply say “ok” and accept your offer.

It is more likely that they’ll turn around and say “ok, you’re willing to pay 320 and I’d like 340, so let’s split the difference”.

Now instead of paying $320,000 you’ve ended up paying $330,000.

If you want to be sure that you only pay $320,000, you may need to consider a different strategy.

The trick is to start with a small increase, say to $310,000. Then if the seller still disagrees make you’re next offer half the increase of the last offer, that would be $315,000. If you still had to increase your offer, make your next offer an even smaller increase, say to $317,000 or $318,000.

Using this strategy you may be able to get the property for $320,000.

You can learn more about becoming a better negotiator at:

http://www.RealEstateSecrets.com.au/negotiating

Warm Regards

Hans Jakobi – Your Wealth Coach®
Real Estate Secrets