Guerin Consulting

With regards to the secrets of how to make an offer on a home, you probably already know some of it. You offer less than you're willing to pay, right? That negotiation technique is actually the most common one. However, there is just one technique among many more powerful ones for those experienced investors.

How You Should Make an Offer

Offer an odd amount, like $161,735. By doing this, you are giving the impression you know something the seller doesn't. You have a good reason for that particular price is what he may think.

Play dumb and ask questions. Talk slow, ask for help, and never show off your real estate expertise. Sellers will be afraid to budge if they think that they are being taken advantage of by a smarter person.

Try using the "limited authority" technique. Try "I'll have to check with my wife (or partner)." It's easier for sellers to accept that you can't do something, rather than the idea that you won't.

Use precedent. Say this: "My father bought his house this way." If the offer is unusual, sellers will feel more comfortable knowing it has been done that way before.

Try asking for this you don't need. When negotiating, this lets the seller win concessions. Being able to say "I guess I don't need the refrigerator, if I can get my price" later means that you are more likely to get your price.

Have a go at being reluctant. Well, I don't know..." are things you can try to say. By doing this, the seller will look for ways to motivate you and it will let him feel like he's won something when you settle the point.

Try to make their offer seem like it's their idea. You can give this a try: "Are you saying you'd like a later closing, and more earnest money? Well let's do it your way, then. I just need..."

Try getting approvals before the offer. "What if I paid your price, but got my terms? Would that work for you?" For the seller, it will be hard to say no to an offer he more or less already agreed to even with a few changes.

Use flattery. In real estate negotiations, flattery has been proven to be worth an average of $1962 . That's a joke, by the way, but you know if he likes you, you'll probably get a better deal.

Pass over problems, then return to them later. Agreeing on every agreeable point first is a good idea. Doing this will make it feel like the house is sold and it will be hard for a seller to lose the deal over an issue or two that you need to go in your favor.

You can spend a lot of time looking for cheap houses. Good negotiation skills will help you make any house cheaper. What you can do is spend a little time learning the secrets of how to make an offer on a home.