So you find a property that you are interested in buying, reconstructing and later renting or reselling. You go to the homeowner, with much confidence that you will figure out a deal, already thinking about what you to do to the property to make it more appealing, and bum, you walked into a dead-end street.
The seller is stubborn, not actually being interested in negotiating the price or some other factors that might be involved, and there appears a huge problem. For some this might be a situation, when they just step back and withdraw from that one, but for others, it is just beginning of the game – and that is the right way of thinking in real estate industry.
You must understand, that person who is selling their home, are probably emotionally attached in some way, so it kind of blurs their mind of reality and expectations. This ends up when making an offer, that they will not want to change, or it only seems like that.
Let’s take an example that seller has set the price to $300K, and not a dime less. While you come with an option of $250k. You see this is very all hard years of work and educating should come into place. There are ways that you could come on top, mostly based on pressure putting.
- There is one thing that you need to understand, and that is that power belongs to the one with more options. If your seller has better options than what you are giving him, it will be almost impossible to make him move out of that range. But often, it happens that they simply invent that, just to put some pressure on, while in reality they do not have anyone, but you. The best thing that you can do here is that you investigate things a bit, even before meeting your client, call the listing agent, and see for how long has house been there, and were actually some offers that fulfill sellers demands. Once you have that info, you could go and even use that pressure on your seller, by telling him stuff like, Sorry, we would love to have this property, but we have few more options, at a lower price, and better location’’.
- The second important thing here is to, be patient. Patience is a virtue in life, and patience can bring great profit in the real estate industry. And time is money. There are two situations, which you might use, as your time pressure point. One is that your seller is simply, really short on time, and needs that money urgently to pay off debts, or has already contracted a new house, and has to pay for it. You should get educated on this information before the meeting, or even during, by asking some tougher questions, and see the response. Also getting the seller back to reality, as he will probably realize that he is not in a comfortable situation, where he could dictate stuff. Your other option is to leave for the time and do not make any instant counteroffers. Let a few days or even a week pass, and you will probably get a call from your seller, ready to renegotiate things, after realizing that he is probably losing you. Chances are, you are not hurrying anywhere, so why not wait a bit longer, and greatly benefit from it.
- Now, we come to a point, where you should actually use both of the previous skills, patience, and communication, to change your seller’s mind. You see when it comes to a meeting between to people, it is all about communication, and making a statement. What you will need to do here, is to actually find few more properties that might satisfy you enough, just as a back-up. Once you go up to the seller, if you actually have other options, he might feel threatened, and agree to lower the price. This simply comes as a result, of thought, that the way you present yourself, gives him a feeling that you might actually walk away without causing yourself a problem, while probably doing great harm to him. He knows how much money and time he invested, to get even few offers, so to go through that process, once more, is for sure not an option that he is looking for.
Remember, the one side that has more information and alternate options is going to win that. So be sure that you prepare yourself, and present yourself with confidence, not leaving any room or space for seller’s manipulation.