One of the critical points to a successful real estate transaction is the art of negotiations. This can be considered as either an art or a science and once you are aware of these tools, you will be the better for it.

One powerful technique is to never be the first person to give a number regarding the purchase/sales price in the deal.  If you are making a purchase, the question to ask is “If I could pay you all cash and close quickly, what is the least amount of money you would offer me today for this property?” Do not say anything after this under any circumstances!!! When they give you a number, that is the point where you can counter offer and start the negotiations.

If you are ever asked the above question, do not respond with a number but rather with another question such as, “Thank you for your question. I would be glad to answer your question right after you give me a number first as I do not have one in mind.” You should always answer their question with a question of your own to put the onus back on them.

This is a powerful tool because you make the most amount of money the day you buy property as you can lock in equity.

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