So many people in real estate are aggressive. When they negotiate, they are pushy!
I hate it!
So many wasted phone calls. Trying to bring the buyer and seller together to do a deal - and nothing comes of it because the other party just isn’t thinking win-win and how can we solve this problem - to do a deal. They are thinking: “How can I access this seller or buyer and cut this person out of the deal.”
No wonder so many people are poor on the internet with few connections and trying to close their first few real estate deals. Low dollars to enter the industry. Low skill.
But enough rambling. You came to negotiate and answered your telephone. Now you have a prospect on the line and ready to do a deal. You are for real.
How do you negotiate a real estate deal?
Type A’s can’t see closing a deal and are focused on getting what they can when they are talking to you - they don’t build relationships.
Know at the start of the phone call what you will never give up to them without getting paid when selling - money in escrow - or knowing who’s on title to the property - when negotiating to buy a property or note.
I’m sorry to say, but it’s tough out there!
This is knowing your BATNA - Best Alternative To A Negotiated Agreement. For me - the flock is the names of the buyers and sellers before I got mine. Never leave it on the table. I mean never leave the negotiation without it - get something for it! You know what I mean? Or you can walk.
You build a relationship with the buyer and seller and you want to leave with something.
An example: What’s the seller’s motivation?
Focus on meeting interests and not positions. For a seller that is facing foreclosure and you as a buyer coming in this can mean respecting that they are in foreclosure solving their true interest in staying in their home and coming up with a solution that isn’t based on price but solving the problem of how to acquire the property while keeping the seller in the property - possibly as a rent-to-own. Get creative when solving problems!
Don’t just battle over the price. It’s easy!
Use an Objective Criteria
If the buyer or seller don’t agree with your comps then you know that their crazy.
Unlike what most real estate articles on how to negotiate a deal this Inc. magazine article recommends not to play games even though they are rampant in the mean industry.
Some of the commissions on the big deals that are being circulated on the web are unrealistic and just not real. That said, if you were negotiating one of those deals and haven’t closed a deal before wouldn’t you offer a concession to close a deal in a collaborative way? Ya, right!
If you could change one thing with a realtor or real estate investor to make millions what would you say or do?
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