A Negotiation Strategy
In our quest as investors to secure great deals we encounter all types of sellers. I have a special CD in my Wholesale package dealing with Flakey Sellers.
Here's another technique I've used over the years to ease sellers into my way of thinking.
My assistant Valerie handles most of the contacts for our residential leads and she does a great job of it. Occasionally, she'll arrange for me to speak to a seller to close the deal, besides it keeps me sharp.
In this case last week we were talking to a seller who owned a real junker of a property in a decent neighborhood. The seller had been straddling the fence with regard to making a decision. I was intent on nudging her off the proverbial fence.
I let her do most of the talking, so I could note the major concerns. Her thinking was that she wanted to renovate the house herself to grab a bigger profit. I've heard that one before!
Why people underestimate what it takes to do a quality renovation needed to sell a home is beyond me.
I guess some of the blame can be placed on that TV show Flip This House. The show gives the appearance of having a ball while picking out materials, laughing and scratching with the contractor and magically the project is done.
That???s show is painting a rosy picture. Anyone who does or attempted to do a renovation knows how much of a challenge it is.
After hearing the seller out, I politely asked her if renovations were what she did for a living? She said no. I asked had she ever done one before, again, she answered no.
Next I asked what she did for a living? She responded she was a computer technician. I then asked how long had she been in that field. She said about 15 years. I complimented her by saying I was sure she was good at what she did, she agreed.
I bet it is hard detailed work on your job, I said. It sure is, she responded proudly. With the setup in place, I went for the close. So, I asked her, what would you say my chances are of walking into your workplace next week with no previous experience and be able to do what you do?
She chuckled, and said she wouldn't give me any chance. She went on to describe all the training she'd gone through to become the high tech she was. As she talked, her pace started to slow, as the sobering realization started to ease into her mind.
She got the comparison. But to be sure, I made it clear. I told her that???s exactly how it will be with renovations. It's taken me years to build a team, the skill, the money contacts, etc.
Renovations are a skill that she believed she would be able to to do, and do it well. She thought she could manage a major renovation gut job. I mean this house was in such bad shape it would intimidate most rehabbers who had any good sense.
I turned it back over to Valerie who asked on cue, when would be a good time to send our contract?
This is a powerful approach to use on the seller who is not being realistic. Some sellers simply see dollar signs while discounting or downplaying in their minds the amount of serious work required to make things happen.
It's your objective to point this out to them. It's your objective to save them from themselves.
I can't tell you how many owners over the years shared with me their plans to renovate a property. Before, I knew better I'd scratched them off my list, only, to notice after awhile they never even got started OR they actually made the home worse.
In my city of Washington DC, there's still many abandoned properties where some would be rehabber started out only to get in over their heads.
During conversations with sellers, be sure to listen closely. Be ready to point out any flaws or weaknesses in their thinking but in a non confrontational manner. Never brow beat a seller into your way of thinking. You'll loose ???em for sure.
If you found this tip helpful send it to a friend.
Take Action!
Ken Williams
http://www.thewholesalewizard.com/
In our quest as investors to secure great deals we encounter all types of sellers. I have a special CD in my Wholesale package dealing with Flakey Sellers.
Here's another technique I've used over the years to ease sellers into my way of thinking.
My assistant Valerie handles most of the contacts for our residential leads and she does a great job of it. Occasionally, she'll arrange for me to speak to a seller to close the deal, besides it keeps me sharp.
In this case last week we were talking to a seller who owned a real junker of a property in a decent neighborhood. The seller had been straddling the fence with regard to making a decision. I was intent on nudging her off the proverbial fence.
I let her do most of the talking, so I could note the major concerns. Her thinking was that she wanted to renovate the house herself to grab a bigger profit. I've heard that one before!
Why people underestimate what it takes to do a quality renovation needed to sell a home is beyond me.
I guess some of the blame can be placed on that TV show Flip This House. The show gives the appearance of having a ball while picking out materials, laughing and scratching with the contractor and magically the project is done.
That???s show is painting a rosy picture. Anyone who does or attempted to do a renovation knows how much of a challenge it is.
After hearing the seller out, I politely asked her if renovations were what she did for a living? She said no. I asked had she ever done one before, again, she answered no.
Next I asked what she did for a living? She responded she was a computer technician. I then asked how long had she been in that field. She said about 15 years. I complimented her by saying I was sure she was good at what she did, she agreed.
I bet it is hard detailed work on your job, I said. It sure is, she responded proudly. With the setup in place, I went for the close. So, I asked her, what would you say my chances are of walking into your workplace next week with no previous experience and be able to do what you do?
She chuckled, and said she wouldn't give me any chance. She went on to describe all the training she'd gone through to become the high tech she was. As she talked, her pace started to slow, as the sobering realization started to ease into her mind.
She got the comparison. But to be sure, I made it clear. I told her that???s exactly how it will be with renovations. It's taken me years to build a team, the skill, the money contacts, etc.
Renovations are a skill that she believed she would be able to to do, and do it well. She thought she could manage a major renovation gut job. I mean this house was in such bad shape it would intimidate most rehabbers who had any good sense.
I turned it back over to Valerie who asked on cue, when would be a good time to send our contract?
This is a powerful approach to use on the seller who is not being realistic. Some sellers simply see dollar signs while discounting or downplaying in their minds the amount of serious work required to make things happen.
It's your objective to point this out to them. It's your objective to save them from themselves.
I can't tell you how many owners over the years shared with me their plans to renovate a property. Before, I knew better I'd scratched them off my list, only, to notice after awhile they never even got started OR they actually made the home worse.
In my city of Washington DC, there's still many abandoned properties where some would be rehabber started out only to get in over their heads.
During conversations with sellers, be sure to listen closely. Be ready to point out any flaws or weaknesses in their thinking but in a non confrontational manner. Never brow beat a seller into your way of thinking. You'll loose ???em for sure.
If you found this tip helpful send it to a friend.
Take Action!
Ken Williams
http://www.thewholesalewizard.com/
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