All right, what's going on everybody?
In today's video I'm going to be giving you five different real estate negotiation tips
and strategies that I use myself personally to get very discounted real estate deals both
on market as well as off market.
If you apply these strategies, chances are you'll start to see some very good deals come
your way so let's get into it.
Okay, so strategy number one is to always try to get a price from the other party, whether
that's just a direct seller and it's an off market deal or whether you're working with
a listing agent.
For example, with off market deals I always say, "Look.
If we were to make you an as is offer, close quickly, no real estate commission, what's
the best you can do?"
They'll oftentimes give me a number and usually it's a pretty good number.
That's not even to say I can't even negotiate that number so once they give me that number
that's kind of like a framework to work with.
I'll still run my own numbers.
I'll say, "Okay, that might work.
Let me run my numbers and then I'll let you know."
Oftentimes, I'll still come in lower than that number and that's probably a good strategy
too.
You always want to ...
Even if it's a good deal, you still want to negotiate because you don't want the seller
to think that they're just giving their property away so you always want to have some type
of negotiation, even if it's a pretty good deal.
With properties that are listed on the MLS, you can call the listing agent, find out,
"Hey, have they had any previous offers?"
You can ask them, "Look.
Is the seller negotiable on price?"
You can say, "Hey, what would get this property done?
What price would we need to be at to get this deal done?"
A lot of times they're going to divulge a lot of information so learning the history
of the property and just getting them, getting the seller or getting the listing agent to
give you a number is going to give you a big advantage and going to give you some pretty
good real estate deals.
Okay, negotiation tip number two is to only negotiate with motivated sellers.
You could have the best negotiation skills in the world, you could be the FBI Russian
hostage negotiator guy and if you're working with a non-motivated seller you can pull out
all the tricks you can do.
Like, "Look, every single property has sold for this amount," and the seller still thinks
they're house is worth a million dollars, whatever it is.
It's just not going to work.
Some people just aren't motivated.
You should direct your efforts with working with motivated people only.
That's going to make your life a lot easier, it's going to give you some pretty good deals,
and you're not going to have to deal with the headache of some crazy seller who thinks
their house is worth a million dollars when it's probably worth about half that.
Okay, the next negotiation strategy is just to be more informed than the listing agent
or whoever you're negotiating with.
If you have more information, that is going to give you an advantage.
If you've run more comps, if you know what every single property sells for as is, renovated,
if you've read neighborhood articles about what's going on in the neighborhood, if you
know the highest and best use of different properties, that is going to give you an advantage.
Oftentimes what I like to do, whether it's a property listed on the MLS or property that's
off market but it looks like a good deal, I'm going to spend 30 minutes, maybe an hour,
just running comps, trying to find out as much information in terms of property values
as possible.
Not only that, I'm going to read as many articles as possible.
I'm going to become the neighborhood expert for that one specific area.
What happens is that after several months of doing this for different neighborhoods,
different properties, you start to just get an intuitive feel for deals.
You start to know ... If another property comes up in that neighborhood, you're already
the neighborhood expert, you've already done your research.
Comps will change every couple months or so but, for the most part, you're going to have
a leg up, you're going to have an advantage over different listing agents and sellers
and more information, in general, is always going to be better.
Okay, the next negotiation tip is not needing to actually do that deal.
As a real estate investor, you should have so many leads coming in that you don't necessarily
need any one deal.
You have so many good leads that you're not going to just pick a marginal deal, you have
a pretty high qualification for the deals that you purchase.
Coming from that mindset and coming from that position where you have so many leads that
you can be picky with your deals is going to help you in multiple ways.
Number one, you're not going to be desperate when you're negotiating with a seller and
you're not going to be heartbroken over any one deal.
When I was first getting started as a real estate investor, I remember I would lost out
on a couple deals here and there.
I thought that was the end of real estate investing, I thought there would never be
anymore deals because I only had five or six leads coming in per month.
Once you start to get 25, 30, 50 leads per month, you can kind of sit back a little bit
and say, "That deal's not for me."
Maybe you can wholesale the deal, maybe you can list the deal, maybe you can pass it on
to somebody else, but you can be very picky and very strategic about the deals that you
do so that you don't get into bad deals.
It's going to help you from a negotiation standpoint, being that you're not needy and
desperate for a deal.
It's also going to help you from a net profit standpoint, being that you're not going to
be forced to get into any bad deal.
You're going to be very selective about the deals that you do and only do deals that make
$50,000, $100,000, $75,000, whatever it is that is your criteria.
Okay, lesson number five for negotiating real estate deals is that you should build rapport
with the seller or build rapport with the agent.
A lot of people when they think of real estate deals, they think you need to be the hotshot,
Wall Street guy in the suit and you've just come into the house you're like, "Oh, I'm
going to pay $100,000 for this piece of crap house and take it or leave it."
They come in a little too strong because most people think that's how real estate negotiations
are done.
In reality, you should try to build up as much rapport with the seller as possible.
I've got in so many deals just from being friends with the seller, being friends with
the agent, building up rapport, building trust, building credibility, being responsive.
That goes a long ways so when I come across that person that is the tough line negotiator,
"Take it or leave it, $100,000 cash, your house is a piece of garbage," or whatever
the situation may be, it's like I don't really want to work with that person.
I would much rather work with the local, friendly, nice, real estate investor or real estate
agent that is not going to completely trash the house or make some ridiculous offer and
then just try to get into some huge argument about it.
I would recommend just building as much rapport as possible, it's going to help you.
I've gotten properties, like I said, where I was not the highest offer but I built rapport
with the seller and they just generally liked me more than the other people.
The other people were like, "Give me your house.
This is a garbage house, it needs so much work.
Why would I pay this amount for it?
I'll pay this price and we'll be done with it."
It's almost combative.
If you build rapport with the seller, with the agent, it's going to help your cause a
lot.
Okay, so thanks for watching this video on Real Estate Negotiation Strategies.
Honestly, there's probably 20 strategies I have but these are the most important, these
are the foundational, fundamental real estate negotiation strategies.
If you have any questions, drop them in the comments section below.
Please like, please share, please subscribe, and I will see you in the next video.
All right, bye.