Real Estate Negotiations
Real estate negotiations. Here are some of the most powerful real estate negotiation strategies used by moguls such as Donald Trump and Robert Shemin.
Real Estate Negotiation Tips
- Never mention a number until you absolutely have to; the first person who mentions a number loses
- Find out the pain threshold of the seller – this is the only way for you to get the best bargain. Find out exactly how much the seller really needs.
- Keep asking, ‘Can you do any better?’ until the other side gets upset; that’s about the time when you know you are getting the best deal.
Real Estate Negotiation Secret
As Robert Shemin notes, the single most important real estate negotiating technique is to probe and find out as much as you can about the seller and his or her needs:
- Find out the seller’s motives for selling. Ask questions such as ‘Why are you selling?’, ‘What are you going to do after you sell?’, ‘What will you do with the money?’
- Find out how long the seller has been trying to get rid of the property: ‘How long have you been trying to sell the property?’, ‘When do you need to sell the property by?’ The more urgent the seller is, the better for you.
- Find out as much from the seller as possible, while not revealing much about yourself
Negotiate the Best Real Estate Bargains
I love this tactic shared by Robert Shemin:
- Begin with ‘What is the absolute least amount you would take for this property? Then pause and let the silence force the sellers to respond.
- Then say ‘Uh, can you do any better?’ Remain silent and wait.
- Then sign again, wait and say, ‘Really? What is the absolute least amount you would?’. Then the other side might say something like ‘Ok, we’ll tell you what.. $67,000. That’s it’
- Then say, ‘Great. I’ll offer $53426’. Come up with some weird number that is much lower than their offer price. They will probably ask how you arrived at that and you will reply, ‘I just have my secret formula’. Here’s an excellent way for you to reframe the situation – it lowers the tension, lightens the conversation and makes people feel better.
- Then they would come back with another number that is lower.
- Then you repeat and offer another number that is slightly higher than you’re previous offer. If they still give you a better deal, you know you have yet to reach their pain threshold. Continue this last step again. If they keep sticking to their number, you know that that is really the best number you can get.
Use these powerful real estate negotiation tips to help you develop your own negotiation style. They are exactly the ones used by the most successful real estate millionaires and billionaires. The best way to improve quickly is of course to get in the heat of action: find as many opportunities to attend real estate negotiating sessions as possible.