The Best Time To Buy Or Sell Is When You Don't Have To.

This may seem like a strange position to take when investing in real estate, but the best time to buy or sell (from a negotiation point of view) is when you don't have to. When you invest in real estate, it is crucial that you negotiate the best price you can. If the price is non-negotiable, it's probably best that you move on to a deal with more favorable terms. Emotion has no place in real estate. Every move you make should be based on objective data, logic, due diligence, and a position of power...not weakness. This approach will yield you the best potential return on your investment and should never be sacrificed to get the deal done.

The best deals of my life have been made when I didn't need to make the deals in the first place. When you have nothing to lose, there is simply no pressure at all to give in to the terms of the person sitting across from you. In a very nice way, you are basically negotiating from a position of take it or leave it. This take it or leave it attitude will cut out 90% of the "chest puffing" you will endure from your opponent (home seller or buyer). Caution: If you do walk away from the investment due to the terms of the deal, know that you may not get a second chance to re-negotiate. Timing is everything in this game, and there may be an investor lying in wait to take that deal from you. Have a price in mind based on your research not based on the discount you've negotiated off the list price. If the price is pretty close, don't lose the deal over a few dollars.

It never hurts to submit a low offer no matter how discounted it may appear to be. What's the worst that can happen? You don't get a counteroffer or you do at a higher price? Big deal....that didn't hurt, but what if they accept? You may have just saved yourself tens of thousands of dollars. Most sellers will "pad" the price of their home anyway, expecting the investor to negotiate. This is where a Comparative Market Analysis comes in to level the playing field. You can't possibly negotiate a great deal if you don't know the value of the area and surrounding homes. The CMA will give you an idea of what a below market price might be thus giving you a basis for your offer.

One very important note: An Appreciation Cycle and a Correction Cycle will have a huge impact on your ability to get the best deal possible. When pricing is moving to the upside, know that the seller tends to have more control, and when pricing is falling, the buyer tends to be in the driver's seat. Good negotiating however can be had in both an up or down cycle. Just remember, if you don't have to buy or sell a property, you will have a greater opportunity to capitalize on either side of the coin.