If you have been following this series, Seller Negotiation Hacks, than you are familiar with my theory that great real estate perfect the art form of investing (not just the science). I let you guys in some of my personal techniques, “The Opener” and “The Higher Authority”. Well today I am going to teach you another wicked trick called “The Blow” that will automatically knock down the seller’s price down thousands of dollars.
“The Blow” is my most powerful Kung Fu move that I use to get sellers to make me an offer I can’t refuse. People naturally raise the price to more than they need. They don’t need $100,000, they want $100,000.They need $80,000 to pay it off. Typically after “The Blow”, they knock the price down about $5000 and they don’t even know what hit them.
Some people will be wrestling with this because they feel like you are teaching how to beat the seller and exploit the seller for the most you can. But, keep in mind, you are only dealing with most sellers who need to sell and have a situational problem. The best solution is an investor. These people have a problem and they need to get rid of that property now. The best thing is to someone to coach them to understanding what it actually looks like to sell to an investor. Most sellers are not sophisticated enough to know numbers.
“The Blow” doesn’t happen right off. It may happen at end of 25 minutes. The first 25 minutes is listening, rapport building, getting an understanding of the situation, property details, and repair estimates. Most people don’t know how much they even owe on the property.
No one wants to hear, “What will you take for the property?” The whole blow thing is to get to “what do u need?” I have to be able to give them the price they want and at the same time earn an honest living. I can’t help them out of the situation until we get to this point.
Okay, so this this is “The Blow.”
Step 1: Persuade the seller to give you a specific price. Remember, if they try to get you to name a price first, use “The Higher Authority” tactic.
Step 2: Create awkward silence (about 5 Mississippi’s worth).
Step 3: Make a natural long, drawn-out sigh of stress and disbelief.
Step: 4: Respond by asking for confirmation that they are giving you their absolute lowest price. Remind them that you can give cash and ask if they can be more flexible.
It’s great. The silence makes them wonder if you are even connected, then while they are hanging on they all sudden hear your balloon deflate.
Then I will follow that up by saying something like:
John, my partner is fair… but if I am gonna go to bat for you, and get some money in your pocket, you need to be a little more flexible. What do you really need in your pocket right now? Considering there are no real estate fees, repair bills, closing fees, etc.?”
So at this point I have an idea why they want to sale, have made “The Blow” to knock the price down, made the appointment to meet them where it is easier to build more report than over the phone…
Now it is time for the next tactic, “Hacks 5: Gently Turning the Screws”, to start sealing the deal. Stay tuned for more Jedi mind tricks of negotiation that will help you be the Picasso of the investing world.
Until then, keep it real.
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