When you're investing in residential real estate, your success hinges upon your ability to successfully negotiate. You may have the erroneous idea that successful negotiation involves stomping another party into submission. This couldn't be farther from the truth. Negotiation is not a football game, nor is it a blood sport. You need my negotiation seminars.
Negotiation is the art of reaching an equitable agreement with another party. In my negotiation seminars I teach and recommend a negotiation technique that I call "two-stage negotiations".
There are a number of different questions that you need answers to before you can decide whether or not to purchase property. The most important question you need answered is, "Why are you selling?" By obtaining the answer to this simple question, you can custom tailor a purchase transaction that meets the seller's needs and is profitable for you. This is the first thing you will learn in my negotiation seminars.
I've heard it said that God gave you two ears and only one mouth because you should listen twice as much as you talk. We practice that in my negotiation seminars. It may sound silly, but the simple truth is that people talk to you because they like you; they do business with you if they trust you. Use your ears to find out what the seller needs so that you can use your mouth to get what you want.
The two-stage negotiation technique of my negotiation seminars involves asking a series of comprehensive questions that hone in on the needs, desires, and motivations of the seller. Once you determine what they need to have, you can very easily work out the details to give it to them. Simplistic? Absolutely - absolutely, simplistically successful! While you're questioning sellers about their needs be certain to ask them how much they think their property is worth. I've been negotiating for years and sellers almost universally base their perceived value of their own property on how much their neighbor's property is worth.
When talking with them, a figure that they're giving you may or may not be accurate, but remember it's their figure. If they have dramatically under priced their property, you can create a tremendous amount of value by giving them what they want. However, you'll still need to do your due diligence by finding out what other properties in the area have recently sold for and making an assessment of what you believe their property is worth based upon an inspection.
While you have them on the phone, you need to make arrangements to visit the property and see what it looks like. If you're not careful, the road from the telephone to the property can be a long, bumpy one. Because people tend to procrastinate they'll always put off until tomorrow what they could easily do today. By utilizing a classic assumptive closing sales technique, you can create a sense of urgency and move the process along much more quickly. Instead of asking when you can see the property, present them with two choices: "What time today works better for you... two o'clock or four o'clock?" Being assumptive creates a sense of urgency in the seller and demonstrates to them that they need to move forward quickly. 90% of the time, people will select one of two options given instead of seeking out a third.
Once you've spoken with the property owner, go ahead and drive out to the property and view it. Walk through the house and inspect it, making note of any physical defects you see. Once you've examined it, you'll need to sit down with a property owner and talk numbers.
If you find that the numbers the property owner has given you are incorrect, you're going to have to renegotiate by explaining to them why their numbers won't work. By the same token, if your numbers are accurate, go with them if they'll work for you.
The two-stage negotiation technique of my negotiation seminars provides a one-two punch for fantastic real estate profits. Not only will you save time and effort, but you'll close more quality deals than ever before. Remember, you're not looking for the largest number of deals; quality deals alone will make you wealthy beyond your wildest dreams.