I often hear it said when negotiationg prices for IP’s:
“Be flexible on price or terms, never both”.
Can someone explain why this is so? I would have thought flexibility in both would be a better position in certain circumstances.Thanks
JJ
Hi JJ&Jo,
I imagine it is just becuase being flexible on both causes you to easily loose sight of your investment strategy. As an investor, your primary focus should be on your investing system. You should have a strategy and hold fast to it during negotiations.
Dan Lewis
Hi JJ&Jo,
You probably picked this saying up from either myself or Dave Bradley, as we are the only ones I know who use it because it summarises our approach to negotiation.
In essence, what you are doing is offering the vendor either his/her price or else his/her terms. The idea is to give some ground while also getting some ground.
For example, I’m happy to pay full price (if I think I can make a profit), and it may even be that the vendor’s sale terms on offer suit me, but if they don’t then perhaps a delayed settlement, low-money down or vendor carry back will sweeten up the deal.
It would also be wise to remember that you ought not aggressively negotiate on a deal that you know is great. That is, don’t try and negotiate on the purchse of a gift horse [wink4]
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Steve
I heard it said at your Seminar last Sunday and forgot to put it as a question!
Thanks
JJ
It would not be beyond the question to negotiate both in your favour in a declining market or from an over-stretched vendor. However, there would be no need to go around heavy handed, a lot of rich investors have done quite well from firm negotiations when the RE market is in the bin.
<edited – in fact this is the most interesting of topics 9.50pm Friday night>
this is a really interesting topic – asking price = $ at todays value/cost, terms = $ at a time/value calculation
Steve, how would you negotiate in todays market – say sub 7km/inner city Brissy?
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane
You must be logged in to reply to this topic. If you don't have an account, you can register here.
