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You Can Negotiate Anything In a Real Estate Deal - Negotiate All the Other Stuff Print E-mail
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House - Buying Real Estate
Written by Ahmed Amr   
Wednesday, 14 April 2010 02:12
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You Can Negotiate Anything In a Real Estate Deal
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Aside from convincing the agent to trim his commissions and nabbing the best price, there are other ways to save yourself money when you’re buying real estate. I’ve convinced more than one mortgage broker to reduce their fees - which tend to be outrageous. There is nothing set in stone that says you can’t do that. It’s up to you to negotiate a reasonable fee with them - especially when you’re buying an expensive property and taking out a $300,000 loan. Just ask and you will receive. So negotiate the price first and start bickering with your mortgage broker before you sign the all the closing forms. Make sure they understand that it’s a deal breaker. Be prepared to delay closing until they get their minds straight.

You can even negotiate the premium on title insurance. It’s a competitive business and there is always room for some give and take. Once an agent has an agreement between the buyer and the seller on the price, you might find him very cooperative in helping you reduce the expense of financing the deal.

About the only thing you can’t negotiate is the excise taxes - but those are usually paid by the seller.

Always remember that you’re dealing with a licensed professional. There are restrictions on what the agent can and can’t do. Legally, a seller’s agent is not even supposed to tell you that his client is flexible on the price. The most he should do is tell you to write whatever offer you have in mind and he’s obliged to take it to the seller - even if he thinks it’s ridiculous.

Allow me to finish this with one last piece of advice. If you are a real estate investor or even a first time buyer - it really pays to know as much as the average real estate agent. One way to do that is to take a real estate course at a community college or at a broker’s office. The licensing course is about 60 hours and varies by state. Investing a few weeks in this course will pay huge dividends in every real estate deal you do.

Good luck bottom fishing.

 

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Omiewon  - Some Points I Would Add |2010-04-13 20:44:26
I don't have anywhere near the experience that Ahmed does, but I'd just add one point on getting a great deal. If you are looking at properties for which there are many equivalents (i.e. there is more than one "perfect" place) you will get the best price by making multiple bids at the same time. The reason is that even if you have 5 identical condos, all the sellers have different stories. Some will be barely hanging on while others will be steadfast in getting top dollar. Some will be in the midst of a divorce while others will be getting a job transfer and need to move. Some will be sitting on a lot of equity while others will be underwater and can't lower their price. So it pays to have multiple lines out there when you low-ball to find out which seller is the most motivated. Conversely, if there is only one property on your radar, the likelihood of you getting it at your low-ball price is very slim.
frugal nomad  - Always find out why the property is on the market |2010-04-14 15:42:25
One of the first questions you should ask is why a property is on the market. If a property is unoccupied, somebody is paying through the teeth and getting no benefit out of it. If it's empty and has been on the market for some time - chances are the seller is either stubborn or anxious. And the only way to find out - is to make an offer. If he's anxious - you'll find out soon enough. If he's stubborn, move on and check out other properties.
 
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