Many parts of being a real estate investor make your job difficult, from finding your next project to getting the right contractors to do the work. No matter what you are complex, we found negotiating the sales price with a willing homeowner most difficult. When you finally find someone who is looking to sell my house fast. You need to get that person to sell at a certain number that works for you and for them. Being fair in your negotiation is extremely important, or you will not get far. What exactly goes into negotiating with a motivated seller. If you try to deal with one who is not motivated, it may feel like you are speaking to a brick wall. We cover everything you would need to know and some tactics to help you close your next deal. Certain things you can do include repour, starting with a low price, and even creating urgency can help you make a deal with a motivated seller.
Repour
When we buy houses from homeowners, our focus should be on finding out how much that seller is looking to get for the home. To do that, you need to build a relationship with the person. You will not find out their whole life story, especially if you are on a time crunch to get the deal done. Where do you start then? Light conversation is always a good place to start with someone. When dealing with a house, begin to ask questions like: how long have you lived here? Where are you initially from? Have you lived anywhere else? Little stuff like this could open a door for more conversation, leading to building more of a relationship with the homeowner. Showing interest in what they are talking about will let them know you listen. Take mental notes to remember certain things about the person, so if you are to come back to them later, you can always mention previous conversations. The more you get to know this person, the better your relationship will build.
Try To Get A Number
The more you build that relationship with a homeowner, the more likely they will tell you how much they were looking to get for their home. In most situations, this will save you plenty of time if you two or within the same selling price as each other. There will be times you build repour with a homeowner who has an entirely different number than you have in mind. Some homeowners are willing to tell your right from the start what is their asking price.
Creating Urgency
When you are dealing with a motivated seller, depending on their reason for selling their home, they may have urgency without you having to create any. If they do not have any, you can always help make some by explaining that your offer will only exist until the end of the day. There are plenty of times where a homeowner will try to shop your offer. It can be frustrating for confident investors when attempting to close a deal. The best thing you can do is present your request and tell them it has an expiration date. Give them either till the end of the day or the end of the week. This will help you create urgency.
Low-Ball Offer
Plenty of investors uses the low-balling technique, which is basically where you come in thousands of dollars lower than what you can pay. It is a technique that can sometimes get you a better sales price, but it is also risky because it may scare off the homeowner. We personally do not recommend doing this one because it is not worth losing the deal over a few extra thousand. Therefore, we express that when negotiating with a homeowner to always be fair. It will get you much farther than trying to be rough and tuff.
Your Choice
It is your choice on how you decide to approach things when providing an offer on a home. If you follow certain people’s advice, they may say different things or have other techniques. Take certain things that work for you and continuously apply them deal after deal. When you find yourself getting into a rhythm, that’s when values begin to fall into place. There are several types of sales jobs that use different negotiating tactics. Just find what works for your and do your best.