If you are looking to invest in a property and want to ensure that the investment pays off, then you should make the first offer less than you are willing to pay. By putting in your first offer at 10% less, it enables room for you to be able to negotiate a lower price that you would be willing to pay and in turn save you a bit of money on your investment. If you offer the full asking price or a figure close to the asking price, it is more likely that you may end up paying more than you may have or possibly not be able to agree on a price for the property. But by offering a figure that is around 10% less than what you would be willing to pay initially, you could still increase the initial offer and the seller would still think that they have received a good deal for themselves. Read the full report below ….

Offer less than you want to pay

I have mentioned this rule many times so far, it’s a reflex for me now, I don’t even think about it.

This came from my training as an estate agent; they trained me to start high with our fees so the vendor feels they have won something. One day I thought ‘Will this work the other way round?’ so I decided to try it.

I went to see a young couple who were splitting up, they had been let down by a previous buyer and were very keen to get a deal done. The agent gave me some information and said they were looking for £85k; it was on for £95k. The negotiating process I take you through in this book is very powerful; also this rule forms part of the stages of that process. [Original Source: here ]