Negotiating is a VERY important part of becoming a successful real estate investor! It’s important to learn the things to say and the things to do when negotiating with someone selling their house.
Start out by building rapport with the person wanting to sell their house. Remember you’re negotiating with PEOPLE, not the property. Be respectful to people and treat them the way you would want to be treated. In many cases, these are people who have run into a lot of problems and are down on their luck. Emphasize with these people and show them that you care. People do business with people they Like and Trust. This Golden Rule applies to real estate investing also.
When you become a real estate investor you will run into people of all kinds and many that are in dire financial and economics situations. Remember though… Bad Things Happen to Good People. So never talk down to these people, or treat them like you are better then them, no matter what their situation is.
Larry Goins talks about these things in building rapport and trust in negotiations in his live recordings of “For Sale By Owners” which is part of the Ultimate Buying and Selling Machine course
Building rapport with the seller is an important part of real estate dealings. People may forget what you said to them, but they will never forget how you made them feel. Keep working on your people skills and it will make a huge difference in helping people. People will want to do business with someone who they feel is helping them. Larry has a FSBO Script that has the questions to ask that will help you build rapport and move faster when you see a deal. When negotiating, the key is to get your seller to like and trust you. Whether it be the seller or a Realtor or even the bank. People do business with people they know, like and trust.
Here’s a valuable tip… When you are talking with a prospective home seller and going over things over the phone. ALWAYS make your first offer over the phone on the first call. It’s an important thing to do to always be making offers. That’s how you will get to buying multiple properties a month.
Another Real Estate Investing Million Dollar Idea!
Larry offers several “negotiating” One Liners in his course. This one is brilliant! Ask the seller a question that you already know the answer to. An example would be if it’s a 3 bedroom 1 bath older home built in the 1950s. Ask them “Does it have a pool?”
Even though you already know that it probably don’t have a pool when they say “No” it doesn’t have a pool. Say to them… Ohhhh… this will imply to them that you are disappointed that it don’t and give you some leverage in the negotiations. When you give them the impression that it’s not really what you are looking for it will make them think that you’re not as interested.
Keep in mind… when negotiating… the person who cares the least wins.
Here’s an example: When you make an offer on a property and they come back with a counter offer. You don’t have to give them another counteroffer right away. It is alright to just say no.
Other questions I like to ask them is “Why are you selling?” What are you going to do with the money? Also, a really good one to ask is “What would it take for us to do businesss today?
These one liner questions can pay for Larry’s course many times over. Larry also gives many more one liners on the sudio CD in his course. Their FSBO form contains 67 questions that you can ask a For Sale By Owner. These tips can help you get great deals. There’s a script on page 86 of the course of Larry talking to Realtors. I recommend you use this script and become familiar and comfortable with it. What you say and how you say it can change your life.
Real estate investing can be a very lucrative business if you are careful and know the market. I urge you to do the homework and invest in your education it will pay off in the long run. Larry covers all the basics and he tells you like it is. He also tells you how to spot fraudulent practices and that can save you lots of headaches.
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