A big mistake that a lot of real estate investors make with real estate offers is assuming that price is the dominant factor in a transaction. In fact, most of the time, price is not the dominating factor. What pulls more weight than price are other reasons that are linked with emotion. For instance, if you’re dealing with a divorce, the main factor in the transaction is probably linked to resolution. These people want some closure to their relationship, and getting rid of the biggest asset will help them get there sooner.
In order to find out the dominating factor in any negotiation, you’ll have to communicate with the seller. Asking probing questions is a good way to get them to reveal what is most important to them in the deal.
I bought a house from a guy about a year ago who was facing foreclosure. You’d think that his primary reason would be to get the bank off his bank, or to stop the collectors from harassing him. That wasn’t the case. He had Lupus. And he wanted to sell the house, get some cash, and go on a 50 mile hiking trail in Utah. He wanted to be a “survivor”. It had nothing to do with the foreclosure. To him, it was just the “right” time to sell since he couldn’t afford the payments anyway. But he was more concerned with being able to buy the gear and equipment that he needed. So that’s exactly what we did. We solved his problem, and made him a happy man.
So don’t assume that the seller wants more than you’re willing to pay. Take the time to find out by asking questions and LISTENING to what the seller tells you. Then find a way to solve his/her problem and you’ve made a friend (well, we won’t go that far) for life.
This is the weirdest thing, but it works. I’ll start by saying that people like others that are like them. Did that make sense? It’s a subconscious thing (again) but it’s true. You are drawn to people who are like you in certain ways, either personality, interests, goals, etc. Think about the people that you hang around. They’re probably like you in some way or you have something in common. That is what draws people together to build relationships.
With sellers, there is something that you can do to make them feel like you are like them. I touched on this just a little bit in the last lesson, but more in detail here.
Dealing with people will certainly make all types of personalities surface. They’re not all pretty, trust me. You’ll get real assholes and real sweetie pies thrown in there. There are people that talk REAL LOUD, and people that talk REAL SOFT. People that ramble on for hours, and people that don’t say much at all. By noticing subtle things about these people, and slowly build them in to the way you act, they will feel like you are like them. It’s not a conscious conclusion on their part, but when they see you standing with your hands on their hips (and it’s something they do all the time), they will make the connection subconsciously.
It won’t take you long to consciously determine what parts of their personality and body language that you can mimic. This is called “mirroring their image”. It is a highly persuasive technique that you can use not only with sellers, but with everyone.
You can mirror someone’s image simply by smiling at them. If they smile, then you smile back. If they lean slightly forward, so do you. If they say “OK” all the time, so do you. These very subtly actions , when woven into your own personality, can draw a person closer to you, and give the feeling that he or she knows you already.