Flipper/Rehabber · Columbus, OH · Member since 2019 · 21 posts · 3 votes
I walked through this guys house for repairs, he’s motivated to sell, he’s moving out of state, I told him I’ll get back with him after I crunch numbers...
Can someone please help on the best pitch to start negotiating with the seller? Do i just throw out a number or ... say something like “ After reviewing our numbers we came up with and repairs cost we can offer you ...”
@Tarik Sapp - You can't have the mindset that this is a "pitch." The seller has specific wants out of this transaction and your goal is to understand those wants and how you can structure a deal that accomplishes them while also fulfilling your criteria. Leverage an empathetic framework towards his needs and never say "no." Look for ways to say well I can't do that but I maybe we can do XX.
It might be a little late now, but while you're going through the walk-through always ask what number he's looking for to see if you're in the same ballpark (some guys then follow that up with, "ok, and what's the lowest number you will be willing to accept" to have him negotiate against his own number).
Once you know this number, then yes, based on what we're going to put into the property and what the market is baring, we can offer XXXX. If you're still off, Chris Voss gave many great negotiating tactics in a past podcast. You should never pressure him and always let him know the ball is in his court. If this option doesn't work, here are the alternatives and their pros/cons.
Send an email with the details of your offer. That's pretty much how all offers are done. The other way to do it is to sit down over coffee or lunch, especially if the offer is rather complicated.
@Tarik Sapp - You can't have the mindset that this is a "pitch." The seller has specific wants out of this transaction and your goal is to understand those wants and how you can structure a deal that accomplishes them while also fulfilling your criteria. Leverage an empathetic framework towards his needs and never say "no." Look for ways to say well I can't do that but I maybe we can do XX.
It might be a little late now, but while you're going through the walk-through always ask what number he's looking for to see if you're in the same ballpark (some guys then follow that up with, "ok, and what's the lowest number you will be willing to accept" to have him negotiate against his own number).
Once you know this number, then yes, based on what we're going to put into the property and what the market is baring, we can offer XXXX. If you're still off, Chris Voss gave many great negotiating tactics in a past podcast. You should never pressure him and always let him know the ball is in his court. If this option doesn't work, here are the alternatives and their pros/cons.
Reiterate the details you discussed in a prior conversation. Something like, Nice to speak with you again. Last time we talked about the property it still needed xx in repairs and you wanted xx amount because of xx. This reminds them the property needs a lot of work and you are there to help if they need it. You should be more of a team player than a salesman. That is more attractive to the seller.
You should have a purchase contract with you at all times on an appointment and know how to fill it out on the spot. Most of my contracts come from the first appointment and the contract is signed and filled in then as well.