Negotiation

4 Replies

Hey Bp! Is it rude to ask a seller(investor/wholesaler) what is the lowest price they will sell for over the phone before reviewing the property in person and only seeing the pictures? Today I asked a seller over the phone what is the lowest he will sell for and he says why are you asking that when you haven't seen the property. I said so I can get a ball park estimate and so i'm not wasting my time or yours. I seen the pictures and he provided the ARV and estimated repairs. I had an idea of my maximum offer. He tells me he doesn't discuss prices over the phone.

Hey Phillip

I don't think it's rude - just not very effective. Negotiations go a lot smoother when you're face to face with someone and have put in the time to assess the property. That time isn't wasted - it's part of the gig. 

Originally posted by @Erion Shehaj :

Hey Phillip

I don't think it's rude - just not very effective. Negotiations go a lot smoother when you're face to face with someone and have put in the time to assess the property. That time isn't wasted - it's part of the gig. 

 Thank your Erion.

Try not to sound like a Yahoo.


Frank

One of the first rules of negotiation is finding out "why" i.e. why they are selling/buying, why they should do business with you, why they are motivated, why they reached out to you (or still on the phone with you), why, why, why. Then work your way into asking about the price. If you ask the right questions you can already start working on getting the price down before you even ask for their bottom dollar. 

Here are some great questions to ask to help uncover their why, motivation, and your negotiation leverage.

Why did you reach out?

What are you trying to solve?

How do you see us helping\assisting you?

Do you have any concerns about doing this?

Would there be any reason you would change your mind?

Do you have any other questions/concerns before we get started?

Hope this helps.

Cheers!

-Steven

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