When the real estate market gets hot, the investors who know how to negotiate will get the deal. This book combines real-world experience and the science of negotiation to cover all aspects of the real estate negotiation process.

J Scott spent much of his early career in Silicon Valley, where he held management positions at several Fortune 500 companies, including Microsoft and eBay. In 2008, J and his wife Carol decided to quit their corporate jobs, move back East, start a family, and focus on real estate investing. In the past ten years, they have bought, built, rehabbed, sold, lent-on and held over $60M in property all around the country. J is also the co-host of The BiggerPockets Business Podcast and the author of four books on real estate investing, which have sold more than 200,000 copies and have helped investors from around the world get started with real estate. J and his family currently live in Sarasota, FL.

Preface

Introduction

Planning, Preparation & Research

Building Rapport & Determining Motivation

Making an Initial Offer

Bargaining

Renegotiating

Settlement

Chapter 1: Introduction to Negotiation

What We Mean By "Negotiation"

A Simple Example

Negotiation Outcomes

Negotiation Strategies

How Real Estate Negotiation Is Different

Negotiate Everything!

Win-Win Isn't Always Possible

Chapter 2: Principles of Negotiation

Negotiating Mechanics

Concessions: The Currency of Negotiation

Leverage: The Power of Circumstance

Power: A Balancing Act

Momentum: Negotiations in Motion

Price & Terms

Successful Negotiation = Solving Problems

Chapter 3: The Power of Information

Information about the Market

Information about the Property

Information about the Buyer/Seller

Chapter 4: Psychology of Rapport

Business Is Personal

Face to Face

Name Recognition

Mirroring

Talk About Them

Make an Upfront Concession

And Brag About It

When You Cannot Get Face-to-Face

Leave Your Ego at Home

Leverage Their Ego

Keep Building Rapport Throughout

Chapter 5: Seller Motivation & Leverage

The Information We're Looking For

Getting Information Directly from the Seller

Getting Information from Seller Sources

Chapter 6: Opening Bid Considerations

Define Your Target Point and MAO

Write It Down!

Target & MAO Example

Who Offers First?

Avoid Round Numbers

Offer Low…But Not Too Low

Hold Back Some Concessions

The Real Estate Contract

The 6 Major Components of an Offer

Chapter 7: Your Opening Bid Price

Opening Bid Price When Working with Sellers

Opening Bid Price When Agents Are Involved

Chapter 8: Terms & Contingencies

Earnest Money

Closing Date

Financing

Contingencies

Other Terms

Chapter 9: Delivering Your Offer

Make Most Offers in Writing

Use State or Attorney Approved Contracts

Keep Offers as Simple as Possible

Best Practices When Dealing with the Seller

Best Practices When Offering Through Agents

Best Practices When You're the Agent

Timing of Offers on Listed Properties

Chapter 10: Negotiating Tactics

Plan Your Strategy Upfront

Focus on Things Both Sides Agree On

Friction Is Your Friend

Use Documentation

Use Experts

Don't Lie

Keep Your Mouth Shut

Don't Interrupt

Appeal to a Higher Authority

Bluffing / Take It or Leave It

Dealing With Stalls

The Most Important Tip of All

Chapter 11: Concessions Strategies

Rules of Concessions

Always Ask for a Final Concession

Implement a Penalty for Concessions

Taking Concessions Off the Table

It Never Hurts to Ask

Negotiate Concessions in Chunks

Bundle Concessions to Reduce Complexity

You'll Have to Do Better Than That

Chapter 12: Defense & Counter Tactics

First Things First

Defending Against Lowball Offers

Defending Against the Nibble

Defending Against a Trial Balloon

Defending Against Higher Authority

Defending Against Take It or Leave It

Defending Against Silence

Defending Against Lies

Defending Against Interruptions

Defending Against "Tactical Criticism"

Defending Against Threats of Competition

Defending Against a Rejected Offer

Chapter 13: Renegotiation Principles

What Is Renegotiation

Risk of Over-Using Contingencies

Common Renegotiation Resolutions

Renegotiate to Make the Parties "Whole"

Determining Who Should Pay

When To Ask for More

Chapter 14: Renegotiation Scenarios

Inspection Contingency Renegotiations

Financing Contingency Renegotiations

Chapter 15: Negotiating the Sale

Agent vs FSBO

Setting Your List Price

Price and Terms

Important Terms for Your Sales Contracts

Multiple Offers Situations

Escalation Clauses

Chapter 16: Buying from Institutions

REO Properties

HUD Foreclosures

Final Thoughts