Negotiating w/ Homeowners

[Justin Silverio]

What are you saying to homeowners to get them to sell to you? How do you pitch why they should sell to you even though you are offering them a much lower price than they thought their house was worth? I'm sure some of these homeowners are not motivated but others are just going by a price they got from a RE agent or some irrational method. I try explaining why their price is not realistic but it's been hard getting them to get that price out of their head.

BTW - I am rehabbing these properties so my price is going to be much lower than others.

[Clay Huber]

First off, from just a basic negotiation viewpoint, ALL your statements to the seller should be angled on how "they" benefit from it. They don't care about you, they want to know how it helps them.

Example...

Wrong way - You say: The upstairs bathroom needs work, that is why my price is where it is at.

Right way - You say: The upstairs bathroom looks like it would take you quite a bit of time and money to fix up. In order to save yourself the time and potential headache, maybe it is worth just getting it off your hands at a bit of a lower price?

The majority of it though is simply a matter of motivation. It's pretty darn hard to "create" motivation in someone. They are either 'truly' motivated, or 'think' they are motivated. There is a big difference.

With the truly motivated sellers, they are open to your input. If someone says they are motivated, yet seems completely closed minded, then odds are, they are just tire kicking at the moment, but who knows, maybe a couple weeks/months down the road, they will call you back and finally indeed be truly motivated.