61 Questions
What are the three ways a seller can respond to an offer on a piece of real estate?
Accept, reject, make a counteroffer
When does the 'real fun' begin in a real estate deal negotiation?
When the seller submits a counteroffer
What does the author suggest if your initial offer is accepted too easily?
You offered too much
Why does the author consider receiving a counteroffer a good thing?
It shows the seller is willing to negotiate and find common ground
In case of a counteroffer, what does it mean when the seller provides a price different from the buyer's initial offer?
The seller is proposing an alternative price for consideration
Why does the author believe that not having the initial offer accepted is not necessarily a bad thing?
'Acceptance' of your initial offer rarely leads to good outcomes
What is a concession in a negotiation?
When one party gives up something in the negotiation
Which of the following is an example of a negotiable item in a real estate deal?
Possession date
In a negotiation, what could be a reason for one party to feel they got shafted?
Not engaging in any back-and-forth
What can help smooth any concerns on the part of the buyer in a real estate deal?
Home warranty
What is negotiable in terms of financing in a real estate deal?
Whether the seller agrees to carry a second mortgage
What might be an item left in the property that is negotiable between buyers and sellers?
Furniture
What does it mean when one party gives up something in a negotiation?
Concession
What aspect of a real estate deal involves deciding who will pay for certain repair items after the sale?
Credits at closing
What term refers to deciding when you will actually take control of the property?
Possession date
What is included in a home warranty that can ease concerns of the buyer after the sale?
Extensive repair coverage
What approach does the author take when negotiating?
Negotiating firmly but fairly
Why does the author mention that 'When one door closes, another one opens'?
To emphasize that opportunities are abundant
What is the author's preferred location for real estate investment?
Midwest
What is suggested as a good way to start a negotiation with a seller?
Asking the seller what they believe their home should sell for
What should you do if the seller names a price much higher than you can offer?
Ask if that's the best they can do
What is the risk of offering a price significantly lower than your maximum allowable offer?
Risk insulting the seller and losing the deal
Why does the author recommend building rapport with the seller?
To establish a solid relationship quickly
What motivates a seller may not always be related to which factor?
Location of property
What does stating 'Well, I can go to $___, but no lower.' imply during negotiation?
The seller is open to further negotiations.
Why does the author suggest not coming out swinging right away during negotiations?
To establish common ground with the motivated seller.
Why is it important to know the alternatives during a negotiation?
To clarify that your offer is better than any alternative
In the example provided in the text, what was the main concern of the buyer in the deal for the 32-unit apartment complex?
Strength of the buyer
What is the first thing to remember before negotiating a real estate deal?
Immersing yourself in the information of a specific area
What factor made the seller more willing to sell the property at a substantially lower price than initially asked?
The seller's need to get out quickly
How does the text suggest you gain power in negotiations?
By asking as many questions as possible to gather information
What did Abraham Lincoln's quote about chopping down a tree emphasize regarding negotiations?
Importance of preparation
Why does the text highlight the importance of knowing who the top-selling real estate agents are?
To understand market trends and values in an area
How does the interest-based negotiation model differ from traditional negotiation approaches?
Encourages working together to find solutions
What is emphasized as a key element in reducing risks when buying a property?
Gathering as much information as possible
Why does the text suggest that interest-based negotiation can lead to win-win outcomes?
Creates better agreements for both parties
What does having options in real estate investing provide according to the text?
Flexibility and safety
Why is it important to have various options for selling a property, as mentioned in the text?
To increase profitability and flexibility
What is highlighted as the most critical factor in real estate negotiations according to the text?
$0 more than your set price point
Why does the text mention asking sellers questions about their properties?
To gather important information for making decisions
What kind of relationship does the text suggest establishing with a property management company?
Working relationship
What is the importance of discovering a seller's motivation during negotiations?
To determine what their true motivation is, as what they say may not always be the real issue.
Why is it recommended to listen more and speak less during negotiations?
To let the other party speak as much as they can, as every word they say can help you get a better deal.
How can shifting the blame for a low offer onto someone else benefit the negotiation process?
By becoming an advocate for the seller.
What is a common response when someone is asked, 'Is that unreasonable?' during negotiations?
'No, I don't think so.'
In interest-based negotiation, what is the primary focus when trying to reach an agreement?
Identifying the other person's needs and desires to find the best fit for both parties.
What is the difference between interest-based negotiations and position-based negotiations?
In interest-based negotiations, specific names or numbers are mentioned, whereas positions are based on general desires.
Why should negotiators be okay with walking away from a deal?
Because the more desperate party often ends up losing in a negotiation.
What is the advantage of interest-based negotiations over position-based negotiations?
Interest-based negotiations offer multiple ways to satisfy any given interest, unlike position-based negotiations.
What is one key aspect of negotiating that can lead to successful deals?
Continuing follow-up even after initial negotiation has ended.
What should negotiators focus on understanding in interest-based negotiation?
The other person's needs and desires for a mutually beneficial agreement.
What is the primary difference between positional bargaining (PB) and integrative bargaining (IB)?
PB involves demand concessions, while IB involves working together to determine outcomes.
When does it not make sense to use interest-based negotiating techniques?
When making lowball offers on properties
What is the first step in analyzing interests in a negotiation according to the text?
Figure out the stakeholders and their interests
In negotiation, what should you highlight in one color to determine where interests align and conflict?
Essential issues
When analyzing alternatives in negotiation, what should be considered?
All possible actions without judging initially
Why might interest-based negotiating techniques not make sense when dealing with houses owned by HUD?
HUD only focuses on price, not terms
What is a key aspect of interest-based negotiation according to the text?
Determining the interests of all stakeholders involved
What is the best way to move forward in a negotiation after identifying crucial interests?
Give in on non-crucial issues and negotiate on essential ones
What should you do when determining interests in a negotiation according to the text?
Ask yourself what each stakeholder cares about and talk to them
What should be done after brainstorming potential actions in a negotiation?
Withhold judgment and analyze their effects on stakeholders' interests
Test your knowledge on seller financing terms, negotiation strategies, time to close, earnest money, and creative contracts like subject to and contract for deed. Learn about the differences between position-based and interest-based approaches in negotiations. https://www.biggerpockets.com/blog/items-you-can-negotiate
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