Hey guys, Grant Kim here from Creative Cash Flow. Today, I’m sharing a quick tip on negotiating real estate deals that can make a big difference. The trick? Nothing matters.
Stay Calm and Confident
When you’re inspecting a house, talk to the seller. Invite them to join you on the tour. Here’s why: When you point out issues with the house, respond confidently. Say things like, “Oh, don’t worry about that. I can fix it cheaply.” Act like it’s no big deal—even if the back of the house is falling off! This attitude shows you’re calm and confident, which helps get the seller on your side.
Start Negotiations Early
By downplaying the rehab needs as you walk through the house, you set the stage for easier negotiations later. If you tell them, “I can get that done for cheap,” early on, they won’t challenge you when you present your offer and say it will cost $30,000 to fix the house.
I’ve tried this both ways. When I started by casually dismissing repair costs, sellers became less combative. They don’t argue about getting a better deal elsewhere.
Avoid Common Pitfalls
A common mistake is letting the seller think everything is a huge deal, only to present a high repair cost later. That’s when you hear, “But my cousin Joe is a carpenter. He could do it cheaper!” Avoid this by consistently saying you can handle everything for cheap.
Be Honest and Ethical
While it’s important to project confidence, always be honest about repair costs. If you say you can get something fixed cheaply, make sure it’s true. Sellers might know more than you think and could double-check your numbers. You don’t want to get caught in a lie. Always run your business with integrity.
Summary
Mastering the art of calm and confident negotiation can significantly enhance your success in real estate deals. By downplaying repair costs early, you build trust with the seller and create a smoother negotiation process.
Remember, honesty and integrity are crucial—always back up your claims with facts and ensure you’re transparent about repair costs. By combining these strategies, you’ll foster better relationships with sellers and close more deals effectively. Happy negotiating!
Get started with Propelio and unlock all the tools you need to succeed in real estate. Sign up now for a 14-day FREE trial: Start Free Trial
