3.) LOOK OUT FOR THE FAMOUS “BAD GUY-GOOD GUY” NEGOTIATION TRICK.

Everybody has seen this “bad cop-good cop” negotiation trick on TV.. More often than not, the tough cop will ruthlessly question the suspect, stopping just short of violence to gain a confession. Then the “bad” cop is called away for some reason and the “good” cop takes over to sweet-talk the suspect into a confession or a plea bargain.

The same negotiation tactic works in real estate negotiations. Often the husband yet lately I’ve experienced the wife, is the “bad cop,” who is tough and not willing to compromise. But the “good cop” is the husband, who is more reasonable, don’t be fooled.

This is how this tactic was used on me. I was interested in buying a “for sale by owner” house from Steve and Debbie. Surprisingly, tough Debbie was the “bad cop” demanding full price and all cash. But Steve was the “good cop” who realized the vacant house was less than perfect and would be difficult to get it sold.

After a few weeks of informal Sunday afternoon open house negotiations, “bad cop” Debbie finally gave in and to my surprise agreed, to a 10 percent down payment with a 90 percent owner financing mortgage which provided comfortable retirement income for both of them for many years.

I recently completed a deal like this in August, and in most cases, I suggest my sellers negotiate 30% down and finance the balance for 20 years with a 3 or 5-year balloon mortgage. With 30% down the buyers have a good amount vested into the purchase and in many cases, it covers all closing costs and puts a little bit into their pockets at closing.

“Good cop” Steve was only too happy to get rid of that house. Debbie and Steve later became good friends and we completed several mutually profitable transactions together.

Author: danswingblog

Dan has celebrated over 19 years as a full-time Realtor. Successfully listed and sold homes well through the 8 figure market. Advises and assists clients with challenging Portfolios! Not uncommon to be working with foreign nationals, buyers that leverage the Sterling, Euro, and similar currency. Dan welcomes the Global community, with friends in many Nations. He brings a reputation for Integrity, Expertise, and Focus. Our customers deserve the best. Currently provides Residential and Commercial B.P.O.'s, Broker Price Opinions, B.O.V's, Broker Opinion of Value to many lenders. Manage and Sells R.E.O., Real Estate Owned properties, distressed properties! Evaluate and negotiate solutions for sellers and lenders. Developed, operated and sold a Florida "AWARD WINNING" Ad Agency! 2010 & 11 Commercial Agent of the year. RE/MAX Paramount Properties. Relocated to Tampa in 2012, enjoyed retirement for 6 months. Saw unethical practices by some Realtors and choose to reverberate our profession in the Tampa area. In four years built his business to as many as four (4) transactions monthly. Mortgage brokers were calling Dan a Superstar in Real Estate. Dan and his wife relocated to North East Florida, to the community of Nocatee. Currently focusing on 55 and older communities and Luxury Real Estate. Successfully closed on many extremely challenging foreclosures, and Short Sale. Coached and participated in Commercial and Multi-Income Family REO's in the past six years. Elected to the Auburndale City Commission in 1986-88. Created and served as 1st Redevelopment Chair in 1988 & 89 personally put in place all the elements for the Auburndale CRA. 1990 City Commission refused to give a full vote of confidence. After a 5 year journey to personally raise funding, extensive research and study for the CRA district perimeters, and stunned with the Commissions doubt. Positioned himself to run for office again, was re-elected to Auburndale Commission, to serve 1991-93 to full fill the CRA master plan! Active with the Central Florida Development Council from conception in 1985 and sat on the board periodically for the past 25 years representing municipalities and private investors. The positions Dan held from 1986 through 1993 enabled him to have a complete workable understanding of the State of Florida Comprehensive Plan for Future Land Use, and the benefits of intergovernmental agreements, utility franchise expansions, and public/private partnerships! Specialties: Assets recovery & receivership, Real Estate Portfolio's, REO & Short Sale of Residential and Commercial negotiations, marketing consultant, public relations, and Broker Price Opinions for residential and commercial lenders.

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