What is Bid?
A bid price is the highest price that a buyer is willing to pay for a good. It is usually referred to simply as the “bid”. In bid and ask, the bid price stands in contrast to the asking price or “offer”, and the difference between the two is called the bid-ask spread
Steps to Bid And Win Transactions For Property Investors – For you, property investors, do 11 successful negotiation steps that you can use to negotiate and transact in the property investment business that you are running. Check out the discussion in the following article, happy reading!
So, in bargaining for the price of a house, this is what often causes anxiety in itself. Although the price is negotiable, many buyers are disappointed and feel disadvantaged. The reason is that house prices are still expensive.
Tricks to Negotiate and Transact Property
Never Fall in Love or Get Emotional
When looking at a property opportunity, never get emotional, and fall in love with the property. When you get your emotions involved in negotiations, you can be sure that the selling price of the asset will not pay off. It is important to remember that the property that we are going to buy is not for us to live in, but for leasing it back in order to get continuous profit from the property. You need to pay attention to the transactions and cash flow that you will get from the property.
Prepare to Make a Compromise
No negotiation without compromise. While staying in control of the negotiation, you need to be prepared to compromise with the seller in a flexible way. For example, when you have a deal with an offer given by the seller, you remain flexible to provide leeway in the process of moving the house for the homeowner to his new home.
How Do Investors Make Offers?
Submit a Fair Price Quote 3-4 Days After the Survey
Usually, you will be tempted to immediately offer an offer after being interested in a property. All you need to do is let the seller ask you first if you are making an offer or not. Give a reasonable offer, which is in accordance with the cash flow from the property. Conduct site surveys and analysis of calculations and trade-offs with the seller.
Basis of Offer Not on Price but on Good Cash Flow
Every time you make an offer, you need to calculate the potential profit from the property you are looking for in advance, starting from the comparison with the market price, the liquidation price to the transaction price. Thus, you can estimate the potential cashback that you can get. After getting the calculation results, you can determine the bid price.
Determine the Maximum Price Limit Before Negotiating
Good investors are those who have made preparations before negotiating. You should have studied all the details of the location of the property you are looking for and know the exact market rates. Thus, when negotiating, you already have a maximum bid price.
If the seller seems difficult to accept prices below the maximum limit, the negotiation is better to stop. It’s a good idea to read the salesperson’s way of thinking from the start of the negotiation and understand whether he is flexible in terms of pricing or not so you don’t waste time.