The Real Estate Show

Radio Show Notes 08/13/24 Tuesday:

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10 Must-Know Tips for Successful Real Estate Negotiation: Step-by-Step Guide

By Eric Willner, Investor, Coach, and Host of The Real Estate Show, America’s longest running daily radio show about real estate.

"Welcome to The Real Estate Show – South Florida’s #1 Real Estate Radio Show and America’s longest-running daily radio show about real estate. My name is Eric Willner, known as the Voice of Real Estate. As the founder of this show and the creator of The Automatic Landlord System for Owning Cash Flowing Real Estate 'Profitably and Hassle-Free,' I’m thrilled to be your guide on this journey to financial independence through real estate. It’s a virtual real estate seminar in every episode, so get ready to take some notes!

Today, we're diving into Real Estate Success: Step 5 - Making an Offer and Negotiating as part of our ongoing series, The Step-by-Step Guide to Buying Real Estate."

Introduction to Today's Theme

"Let’s talk about success and failure in real estate, and how you can ensure that you land firmly on the side of success. Today’s theme is all about making an offer and negotiating—two critical steps that can make or break your real estate deal. Knowing how to navigate these waters is essential for securing the best terms and ultimately achieving your real estate goals.

But before we dive deep, let’s take a moment for our Transformation Tuesday meditation:

'Lord, as we embark on this Transformation Tuesday, we seek Your transformative power in our work and personal lives. Guide us to be agents of positive change in the real estate landscape. Bless the properties we handle, that they may become places of warmth, security, and transformation for those who dwell within. Amen.'"

Did You Know?

"Now, let’s get into some thought-provoking questions related to today’s theme:

1. Did you know that the average homebuyer loses out on their first two offers due to poor negotiation tactics?
2. Did you know that understanding market conditions can save you thousands of dollars when making an offer?
3. Did you know that a well-negotiated deal can increase your property’s ROI by up to 15%?

These are just a few of the alarming statistics about the current market. It’s important to be aware of the challenges you may face so that you can plan accordingly. Awareness and preparation are key to making smart decisions that will benefit you in the long run."

The Importance of Making an Offer and Negotiating

"In today’s highlighted Tools and Techniques segment, we’ll dive into the practical aspects of making an offer and negotiating effectively. Yesterday, I shared with you 10 reasons why making an offer and negotiating is critical to your real estate success. Now, let’s break them down step by step so you can implement them in your next transaction.

1. Understanding Market Value: Before making an offer, it’s crucial to understand the market value of the property. This includes looking at comparable sales, understanding the neighborhood trends, and knowing the property's history. Armed with this knowledge, you can make a competitive offer that reflects the property's true worth.
2. Pre-Approval is Power: Always come to the negotiating table with a pre-approval letter. It shows sellers you’re serious and financially capable, giving you a stronger position when negotiating terms and price.
3. Know Your Limits: Set your budget before making an offer. This includes not only the purchase price but also closing costs, potential repairs, and other expenses. Knowing your limits will prevent you from getting caught up in a bidding war and overextending yourself financially.
4. Make a Strong Initial Offer: A lowball offer can be off-putting to sellers and may result in them not taking you seriously. Instead, make a strong initial offer that is fair and reflects the market value. This sets a positive tone for the negotiations.
5. Use Contingencies to Your Advantage: Contingencies, such as home inspections and financing, give you leverage in negotiations. If issues arise during the inspection, for example, you can renegotiate the price or ask for repairs.
6. Stay Calm and Collected: Negotiations can be intense, but it’s important to stay calm and collected. Emotional decisions often lead to mistakes. Keep your end goals in mind and stick to your strategy.
7. Understand Seller Motivations: Knowing why the seller is selling can give you an edge in negotiations. Are they in a hurry to sell? Are they emotionally attached to the property? Use this information to craft an offer that meets their needs while still benefiting you.
8. Be Ready to Walk Away: One of the strongest positions you can have in a negotiation is the ability to walk away. If the deal isn’t right, don’t be afraid to step back. There are always other opportunities.
9. Work with a Skilled Real Estate Agent: A good real estate agent can be your best asset during negotiations. They understand the market, know how to communicate effectively, and can guide you through the complexities of making an offer.
10. Get Everything in Writing: Verbal agreements are not legally binding in real estate transactions. Make sure every detail is documented in writing to protect your interests and avoid any misunderstandings later on.

Remember, The Real Estate Show is your partner in real estate. Our expertise and experience can be the difference between a successful and stressful transaction."

Call to Action

==è>>> ADDITIONAL ACTION STEPS

1. Secure Favorable Terms: Negotiation allows you to potentially save money on the purchase price, secure closing cost credits, and negotiate for repairs.

Action Step: Research average closing costs in your target area and factor those into your budget. When crafting your initial offer, consider leaving room for negotiation on price and concessions.

2. Competitive Advantage: A well-crafted offer and skilled negotiation can help you stand out in a competitive market.

Action Step: Make sure your offer is strong – pre-approval is crucial, and a flexible closing date can be appealing to sellers. Highlight your qualifications as a buyer and express genuine interest in the property.

3. Setting Expectations: The negotiation process helps establish a clear understanding of expectations for both you and the seller.

Action Step: Be clear and concise in your offer – Outline contingencies such as financing and inspections. Be prepared to communicate effectively throughout the negotiation process.

4. Building Value: A successful negotiation can secure a property below market value, increasing your potential return on investment.

Action Step: Research recent sales data in your desired area to understand fair market value. Be confident in your offer and your ability to negotiate effectively.

[Sponsor Break: Today's Show is Brought to You By: TimeToFixMyCredit.com - Text 'Credit' to [Your Show Text Number]]

5. Developing Confidence: Negotiation skills are transferable to other areas of life, empowering you in future business dealings.

Remember, a successful negotiation requires knowledge, preparation, and confidence. Don't be afraid to seek guidance from a qualified real estate agent or financial advisor.

"Have a specific question about home loans? Text 'LOAN' to [Your Show Text Number], and we’ll tackle it on a future show! And don’t forget to join us next week for [Topic of Next Show].

Now, there are resources to help renters, buyers, and investors alike—so attend our Tuesday night workshop to get the latest insights and strategies."

Break for Sponsor

"Today’s Show is Brought to You By: TimeToFixMyCredit.com. If you're serious about getting your finances in order, make sure to check out TimeToFixMyCredit.com and text 'CREDIT' to [Your Show Text Number]."

Tools for Achieving Your Real Estate Goals

"Let’s break down the theme in more detail but emphasize the tools you’ll need to achieve your real estate goals for the new year ahead:

1. Experts Teaching About Real Estate Home Ownership: Having access to expert advice can help you make informed decisions throughout your home-buying journey.
2. The Path to Homeownership Free Workshops: These workshops provide valuable insights into the home-buying process, from securing financing to closing the deal.
3. Financial Calculators: Use these tools to calculate your mortgage payments, determine your budget, and assess the financial feasibility of your purchase.
4. A Financial Plan: A well-thought-out financial plan is essential for long-term success in real estate. It helps you stay on track, manage your expenses, and build wealth over time.

Final Call to Action

"Today’s Show is Brought to You By: TimeToFixMyCredit.com. Don’t forget to text 'CREDIT' to [Your Show Text Number] for more information on how to improve your credit score."

Summary

"To summarize today’s show:

• Understanding market value is crucial for making a competitive offer.
• Always come prepared with a pre-approval letter to strengthen your negotiating position.
• Set your budget and stick to it to avoid financial pitfalls.
• Use contingencies wisely to protect your interests.
• Work with a skilled real estate agent to navigate the complexities of the negotiation process.

Tomorrow is our Wednesday Midweek Mortgage and Market Report, and you won’t want to miss getting up to date with what’s going on in the real estate world.

Thank you for tuning in to The Real Estate Show. Don’t just listen—use our show to get started in real estate investing. Tune in every weekday to our show, a literal seminar in every episode. And don’t forget to attend our free online workshops to continue your education and stay ahead in the real estate game.

Have a great day, and I’ll see you tomorrow!"

There are resources available to help renters and buyers, as well as investors. Consider attending our free Tuesday night workshop – The Path To Homeownership. It's a fantastic opportunity to learn more about the home buying process and connect with industry experts.

We'll also discuss essential tools like financial calculators. Remember, a solid financial plan is crucial for any real estate investment.

Also, you can listen to the entire 30 minute broadcast of any day’s edition of The Real Estate Show by clicking on the audio link on that days summary post. You can also watch the Facebook Live video at www.facebook.com/TheRealEstateShow.

Want to know more? If you are serious about real estate and paying off debt, then find out more on today and every day’s episodes and learn more about Real Estate Investing and learn HOW TO by listening to The Real Estate Show with Eric Willner , Live every weekday morning at 9 o’clock (EST) on Florida’s Money Talk Radio stations WWNN AM1470, FM 95.3 and FM 96.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook. Please share this and our Facebook updates.

Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.

Also listen to the rebroadcasts on demand on Facebook.com/TheRealEstateShow 

Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.

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