If you’re new to Real Estate Investing, at some point in time you will find yourself face to face with a “tough cookie” homeowner negotiating the sale of his home. If this is a situation where you are dealing with a distressed property homeowner, you are probably in a high-stress environment.
So don’t be that guy who “wings” without preparation. You want to add genuine value, making homeowners trust you and want to do business with you.
Follow these simple tips to nail your next offer and close the deal:
1. Power Poses
Often body language is a bigger indicator of confidence and intent than actual words. Unfortunately, most investors don’t have a formal sales or 1-1 negotiation training and may not know how to carry themselves in a high-pressure situation. Watch this short TED talk video on body language to master this skill.
2. Prepare Your Offer
Go prepared with a short list of 3-5 ‘comparable’ sales that justifies what you may be offering the homeowner. Many people have an unreasonable expectation of the value of their home & a simple Comparable Market Analysis (CMA) can re-caliberate the homeowner expectations. Simply open the property in RealAquisitions.com and choose accurate and live sales comps to prepare the CMA with a few simple clicks.
3. Let Your Flashlight Talk
Telling a motivated house seller what’s wrong with his house is often like sticking your head in a hornet’s nest. Consider this simple alternative- as you’re walking the home with the owner simply point your flashlight to that crack, or the old cabinets, or the busted tile and note it in your pad. The owner is doing the mental $ deduction watching you, without you opening your mouth.
4. Break Down Your Offer
Educate the sellers on the true cost of selling a property. After taking out 6% agent commissions, 2% escrow fee, 3% Property taxes, the fix-up renovation cost, mortgage costs(during hold)- you can show the homeowner that your cash offer isn’t really that low. Most offers are done showing that in reality you are really not that far off.
5. Follow Up
If you’re looking to buy off-market real estate then you must get good with consistent follow-ups. A recent survey of the top property wholesalers with Real Acquisitions revealed that over 60% deals are done after the 3rd follow-up!
6. Don’t Be Afraid To Walk Away
Attitude is key when negotiating, and creating the right impression can be the turning point when closing a deal. However, finding homeowners that are truly motivated to sell their home is crucial, you should be willing to walk away when numbers don’t work.
A motivated seller is a person who is looking to either sell their home below market value (10%-30% below), or do so under flexible terms and conditions, such as no interest or no down payment. Believe it or not, there are tons of sellers like this right in your backyard.
You can access some of the most potent motivated seller lists on Real Acquisitions. The software further gives you personal details such as Social Media profiles, cell phone number and email address to give you an infant advantage! You can create a free account by visiting RealAcquisitions.com/pricing.
Happy Investing!
