When doing a short sale on a house in foreclosure, it’s best to know how to play the game with the banks. Their job is to get as much money for the property as possible and your job is to get it as cheap as possible. Using real estate comps of short sales and/or foreclosures in the area will help you with your negotiation process. I wanted to go over a few negotiating tips that I’ve found that will help the deal go as smoothly as possible.
Negotiating with the Banks
1) Call to make sure they have your paperwork. This may sound very simple, but you would be surprised what can get lost in corporate offices. This way you know that they can reference it as needed when you begin.
2) Take pictures of everything wrong with the house. Really important when you are negotiating a low price.
3) Take pictures of the house that shows only the good areas (This is done to use the pictures when you sell the property). You should put these pictures on your selling website.
4) Do not negotiate with loss mitigators on the phone, ALWAYS tell them you will fax them a counter. You do not want to give a price on the phone.
5) Get their email address to send pictures to support your low price. The loss mitigators need proof that the price you are offering is fair. So, use that digital camera to take pictures of all the repairs needed.
6) You will also need proof of your price through comps. You can use your InvestorCompsOnline account to get the low comps for the houses similar to the one you are short selling. Pull comps for similar homes that need just as much repair, this way you are comparing oranges to oranges.
7) Do not argue with the loss mitigator. Their job is to get the most for the property, not give it away because you asked. Try to gain rapport with the loss mitigator or negotiator. Lets stress, be nice.
I truly hope these few negotiating tips are beneficial to you as you step into the ring with banks for foreclosure deals. Remember InvestorCompsOnline is your source for solid real estate comps for the current market. Take advantage of what we have to offer and you will be able to negotiate confidently.