I love the challenge of getting a great deal. The secret is making the deal just as good for the other people involved. I will go over seven powerful negotiating tips that you will find very useful in your real estate deals.

Tip #1: Let the Other Party Speak First

Never make the first offer…let the other party do it.

Two reasons why you should do this...

1. When the other party states their position first, you have the ability to define the mid-point of the negotiation! The person who states the first position is at a disadvantage to the person who waits, as the person who waits can define the mid-point.

2. It’s possible that the other party’s first offer will be better than the first offer you would make. By stating your position first, you’ve given away valuable information to the other party, you maximum price.

Tip #2: Stop Talking and Start Listening

When negotiating is important to keep your mouth shut and listen to the other person. People are naturally uncomfortable during a negotiating silence and the common result of this uncomfortable situation is that one party will make a concession to break the awkward silence. Make the other person break the silence.

Tip #3: Information is Power

The negotiator with the most information will walk away with the better outcome. When negotiating, it’s important to know as much as possible, not just about the object of the negotiation, but also about the party you’re negotiating with and their motives. It is more important to solve a problem than to offer the most money. Gather some information from the seller before making an offer.

Tip #4: Always Get the Last Concession

Always make sure you ask for and get the last concession, which is something the other party gives in a negotiation for example a price drop, better terms, etc. By getting the final concession the other party wants/needs from the negotiation.

For example, when negotiating with a contractor, let’s say that he throws out a final price that you both agree on. Say, “I agree with that price, if you can start first thing tomorrow morning.”

Tip #5: Implement a Penalty for Asking for Concessions

Have you been on the phone with customer services and you find that every time you ask for something the rep puts you on hold for 10 minutes. They do this because they realize you are less likely to ask again because you may have to wit 10 more minutes for a response. Making them wait is a great example of a penalty. You may say, “I’ll have to think about that, I’ll give you a call tomorrow and we can discuss further.”

Tip #6: Friction is Your Friend

There needs to be enough friction in the negotiation to make both parties feel like they earned a great deal. Make them work hard to get to a common agreement.

Tip #7: Check Your Ego at the Door

Sincere flattery will go a long way in getting you a better negotiating outcome. It will allow the other party to put their defenses down and they will feel obligated to return the favor.

FHA Home Loans for Buying a Home or FHA Mortgage Refinances are Fast and Easy with FHA Home Loans.com

FHA home loans allows first time home buyers to purchase a home with less than 3.5% down. You can learn more about how to apply on their website.

What does this mean for real estate investors who buy houses, fix them up, and sell them? It is important that you buy houses that are not too expensive. You want to find houses where the the after repair value is around 80 to 250 thousand dollars. You want to think to yourself, could the average first time home buyer afford this house at the price I am willing to sell it for? If the answer is yes, then this is a great property to invest in. When you are aiming at first time home buyers you must wait three months after you close on the property to put it on the market. This may change some of your strategies. Just remember many of the people buying houses now are first time home buyers.

President Obama approved the extension of the $8,000 first-time home buyer tax credit. Not only did they agree to push back the deadline, they are expanding to allow current homeowners and more affluent buyers to utilize the tax credit.

A few things to know about the tax credit...

1. The tax credit was designed to stimulate the housing market and allow unsold properties to be sold, which were putting a downward pressure on the market.

2. The deadline for first-time home buyers was pushed back to April 30, 2010. Home buyers must have a sales contract by April 30th and then they have 60 days to close.

3. The most significant change is that current homeowners who have lived in their home for at least 5 years are eligible to claim up to $6,500. The current credit prevents home buyers who have owned a primary residence within the past three years from claiming the credit.

This is great news for real estate investors. The tax credit extension should help keep house sales up, during the generally slow winter market. We primarily buy houses that we can sell to first-time home buyers. This tax break has allowed us to sell our houses within days of being on the market.

http://www.usnews.com/money/blogs/the-home-front/2009/10/29/first-time-home-buyer-tax-credit-gets-obama-nod.html

L&I plans spot checks of apartment buildings

The Department of Licenses and Inspections hopes to begin spot checks of apartment buildings in order to prevent tragedies like the fire-escape that collapse and killed 25-year-old Steven Lee.

They hope to check all small apartments that tend to have violations in densely populated areas. L & I hopes to begin this fall. They are doing this with the safety of the people of Philadelphia in mind. If you rent in an apartment building that fits the description above, be prepared for a spot check.

Learn more about renting and HUD rental assistance programs.

Need Help?

	Privately owned subsidized housing - HUD helps apartment owners offer reduced rents to low-income tenants. Search for an apartment and apply directly at the management office.
	Public Housing - affordable apartments for low-income families, the elderly and persons with disabilities. To apply, contact a public housing agency.
	Housing Choice Voucher Program (Section 8) - find your own place and use the voucher to pay for all or part of the rent. To apply, contact a public housing agency.