Hey there, Patrick here with some tasty Awesomeness!
You probably know that negotiating is a HUGE part of our business. Thing is, not everyone is good at it, and many people pretty much loathe it.
I get it, it can be intimidating… unless you’ve got 4 solid strategies that I use in my real estate endeavors. And now, I’m sharing them with you. 🙂
Read ‘em all, because there’s certainly a time and a deal for each of these to be used.
Get to it…
1. Use the “Give & Take”
Remember: For every action, there is an equal and opposite reaction.
I use the “Give & Take” in a negotiation when the other party is trying to ask for something more (especially at the last minute)… and expects me to just give it to them because we are so close to coming to a conclusion.
The seller might say that they, all of a sudden, want to keep the appliances that we agreed came with the house.
So, you could say:
“Well, I definitely need to have appliances with the house because I’m going to fill it with somebody who will need them. So, what you’re saying is that you would like to keep these appliances and adjust the selling price accordingly, so we have the same deal we agreed to?”
This will roll the ball back in their court and keep you in control of the negotiation.
It will let them know that you intend to receive something in return every time they ask for something extra in the deal in order to keep things fair. This technique also works with closing costs, repairs, move-out dates, and other personal property items, etc.
The “Give & Take” is simple but keeps the scales of the negotiation balanced. Apply this technique to make and save hundreds, maybe even thousands, in deals.
2. “Go Negative” with Time Vampires
I was on the phone the other day with a new tenant-buyer who’s moving into one of our properties. She was calling again to complain about some repair work that was not done to her satisfaction and expressed her general dissatisfaction with her experience with our company so far.
As I was explaining to her that the house was not brand new, and that what she wanted was not on our scope of work, I realized I had a perfect opportunity to “go negative.”
I interrupted her rant and said:
“You know what, if you are this upset with the way we do business and the condition of the house, we should part ways and not do business together. We want the people that we work with to be raving fans. We will gladly refund your money.”
She quickly retorted, “Well, these are very minor details that we can work out…”
It is amazing how this simple technique will immediately separate the people you want to work with from — as Dan Kennedy would say — the time vampires.
I was able to diffuse her attack by “going negative.”
It may sound counterintuitive, but trust me, it works! The people who part ways are nothing more than time vampires disguised as potential clients. You just saved yourself some time.
3. Handle “Buyer’s Remorse” in Advance
One of the most frustrating things in this industry is when you get a contract then get the dreaded “I’ve changed my mind” phone call the next day.
Don’t think that just because they are contractually obligated to sell the property to you that it will happen… yep, all the time you spent with them, and the solution offered and agreed upon can go bust.
You blame the seller and spend the afternoon complaining to anyone who crosses your path.
Here’s the solution: handle buyer’s remorse before it handles you!
If a seller has signed a contract with us, I say this,
“Before we part today, I want to make sure that you are completely satisfied with our meeting and really want to move forward with this. Sometimes, a couple days go by, and people change their minds. I just want to make sure that is not the case here. You may talk to your friend, dad, Realtor, whomever… who will give you some different advice about the house. I want to make sure that you communicate to them that everything is taken care of because it is. Sooooo, you are very happy with what we have agreed to, aren’t you?”
After I say that, I just shut up and listen. This is when the client speaks up and justifies to you how happy they are about your offer.
Get them to assure you that they have made up their mind to sell, and you’ve secured your deal.
4: Avoid These 2 “Trigger Words”
When negotiating in real estate, one should never say the words “contract” or “sign.”
Why?
Both words have a negative connotation in the minds of others. A simple change in the words you say can have a big difference in your bottom line.
| Don’t Say | Say |
| Contract | Agreement |
| Sign the contract | OK the agreement |
This makes the process seem less formal and more comfortable.
Just hearing the words “contract” or “sign” can kill a deal. So, watch your mouth.
There you go…
That’s 4 proven negotiating strategies to use depending on the deal and seller situation you’ve encountered. I say proven because I’ve tested ALL of these methods and they ALL work when used properly, as I’ve laid out for ya.
That’s exactly why I use them all to this day for certain deals. You should too. 🙂