Determine Your Terms and Goals
Before you are setting up a negotiation with a home or property seller, you need to know what you terms are. By this, we mean the absolute top and bottom conditions that you have in terms of price, timelines, and the condition of the place. While you might be flexible overall, it’s going to be impossible to negotiate or close a deal if you don’t know what that deal looks like to you.
Reach Out to Quality Leads
There are tons of sellers out there, but not all of them are worth your time. Typically, you want to avoid:
- Sellers that are asking too much money.
- Sellers who have been on the market for odd periods of time.
- Sellers that have bad reputations.
Remember that just because someone wants to sell their property doesn’t mean they know how to sell it on a fair market. You may run into sellers who think they know the market value of their offering and will never budge. You may run into sellers that won’t budge on price or timeline at all, and are never open to negotiations. These are sellers that aren’t worth your time.
Find leads that want to offload their property, because they will be more likely to sell (or, at least, negotiate), which means that you’ll at least have a pathway towards closing the deal.
What kind of incentives can you offer? Can you offer a better price? Can you handle any legal or paperwork fees? Do you offer special local deals like gift cards or a weekend trip to close the deal?
Some of these offers might be a little too rich for your blood, but you would be surprised how much a little incentive will go towards completing the deal.
Develop a Rapport
Once you’ve got an interested lead, offered some key incentives, and determined that they are amenable to some sort of compromise, then it is time to build rapport.
What does this mean? It means don’t approach them simply as marks or grunts. They are people who want to make a deal as badly as you do. If you are friendly, professional, and respectful, it goes a long way towards developing trust. And once you develop trust, people are more willing to work with you even if they aren’t getting the perfect deal that they want.
You aren’t here to make friends… but you can make contacts. Build a rapport and make them trust you.
Close the Deal
Finally, know what you want to accomplish and close that deal. You may want to push for more… more money, more perks, more property. But know where your bottom line is and, if you think you are there (or as close as you are going to get to it) then seal it.
Pulling the trigger on a deal, especially when it is different from what you envisioned, can be one of the hardest parts of trading real estate. Don’t freeze when the time comes to sign the paper sand shake hands. Just close the deal.