Sellers, Brokers, and Equity: The Role of Property Tours in Negotiations

[Jorge Abreu]

How much more can you milk from the property tours? When I scout out an investment opportunity, I make it my mission to visit the property during the day and at night. Why? Such tours give you valuable insights into the property and its surroundings.

When you drive around the property and nearby area, you can get a sense of what the place is like, how busy it is, and the kind of lighting there. Checking it out at different times of the day teaches you a lot about the area. I heard this genius approach from someone else, and it just clicked! Yeah, that makes a lot of sense, I thought.

But I don't just stop there. I go the extra mile by talking to the local officers who have an intimate understanding of the neighborhood. Whether through a phone call or face-to-face conversation, I seek their insights on crime rates and specific property-related concerns. They don't usually hold back, and their input helps me make informed decisions.

Another valuable source of information is the locals themselves. I love having a chat with hotel staff, restaurant folk, and anyone who knows the area like a pro. Their opinions give you that “real ground perspective, you know? Plus, when you're asking people without a vested interest in the game, you're bound to get some honest-to-goodness answers. Who would've thought?

Sometimes you're going to be asking people their insight who have no skin in the game, no attachment to whether you buy the property or not. Therefore, you might get the most honest answers.

Building rapport with sellers and brokers during property tours is essential. It helps establish trust and can even lead to more favorable negotiations. I've had sellers leave equity in the deal simply because of the rapport we built throughout the process. So, never underestimate the power of relationships in real estate.

By touring properties, you can uncover critical details that might not be apparent from the numbers alone. One experience stands out in my memory, where a property tour exposed undisclosed damage. They were trying to hide that, which made no sense because the next step was doing due diligence. It taught me the importance of thorough investigation and not rushing into deals.

So, property tours are more than just a checklist item. They provide valuable information, help you assess the property's condition, and enable you to build relationships with key players. Don't rush through tours or ask redundant questions. Instead, pay attention to tonality, body language, and hidden cues. Document the tour with photos and videos for detailed analysis. And remember, the tour gives you a great sense of who these people are. Make the most of it and leverage every opportunity to gather valuable insights.