FINDING HOT DEALS IN A HOT MARKET - SOME SIMPLE TIPS By Albert J. Lowry PhD How do you find deals in a seller's market? You can't put a gun to the seller's head and force him to sell to you. You have to convince him somehow that it's in his best interest. Even if the seller agrees to a deal, he may not go through with it if he's not happy, especially not in a seller's market. Therefore, you need to make the seller happy without giving up what you need from the deal This is easy to say, but how you do it? Here a few hints which may help you. "PUT YOURSELF IN THE SELLER'S PLACE Ask yourself what the seller is likely to want out of the deal and how you can most usually give it to him.  What would you want, if you were the seller?  What would make you feel good about the deal? WHAT TYPE OF SECURITY WOULD YOU WANT?   Would you insist on a down payment?  Why?  What would it   take to convince you that you don't need a cash down  payment? What would you accept instead? WHAT WOULD YOU EXPECT TO GET FOR THE PROPERTY?  Why?  What would it be based on?  Does the property compare well to other properties in the area?  Would you feel confident if you were the seller? Would any personal factors be affecting the sale? EVERYONE WANTS TO DEAL WITH A  BUYER WHO IS FAIR No one likes dealing with a shark, or having to count their fingers, after they shake hands. Honest, fair-minded buyers last longer in the business and make out better in the end, but this doesn't mean you have to spend all your time thinking about the seller and his wants and needs. WHAT'S IN IT FOR YOU? There's nothing wrong with trying to increase your piece of the deal, even if it is at the seller's expense, as long as you are not being dishonest, or unreasonable YOU NEVER FALL IN LOVE WITH PROPERTY, ONLY THE DEAL If the price and terms are right, almost any property can be a great deal.  If the price and terms are wrong, then almost any property can be a bad deal. KEEP YOUR OPTIONS OPEN Ideally, you should be negotiating with more than one seller at once.  While you're talking to the seller of your first choice property, you should also be talking to the owners of your second and third and possibly the fourth and fifth choice properties, as well. IT ALL COMES DOWN TO THE NUMBERS If you can't get the price and terms you want, you pass. This will keep you in the right frame of mind, able to press calmly for terms that meet your standards. ALWAYS KEEP AN EYE OPEN FOR OTHER DEALS Deteriorating or mismanaged property, the kind you should be looking for, exists almost everywhere. Much of it is never advertised or publicly listed. BE PREPARED TO CONCEDE SOMETHING IN EARLY NEGOTIATIONS Raising your offering price, or softening your terms can often get you the deal instead of making you miss out LEARN ALL YOU CAN ABOUT THE SELLER You want to know his problems, his goals, his motives and inclinations.  A BUYER CAN BE DECIEVED BY FALSE INFORMATION For example, he may hear that a shopping center or a school is to be built nearby. If his belief is unfounded, he bids more than he should. EMOTION CAN DISTORT THE NORMAL PATTERN OF NEGOTIATION The seller's gestures, body positions, facial expressions, tone of voice, and other non-verbal communication may tell a more revealing story than anything he says. THE BUYER SHOULDN'T SHOW ANY GREAT INTEREST IN THE PROPERTY Remember, it all comes down to numbers, not emotions. BRING THE SELLER GENTLY DOWN TO EARTH Without seeming contemptuous or insulting, the buyer should tactfully bring the worst defects of the property to the owner's attention. You will never get every deal. If you do, you're aiming much too low. But, if you follow these tips, it should help you negotiate good deals even in the worst of markets.    BACK TO REAL ESTATE ARTICLES PAGE CONTRACT WIZARD HOME PAGE TAX SALE RICHES HOME PAGE MORTGAGE MAGIC HOME PAGE