What is Reasonable to Offer Below Asking Price? That seems like a legitimate question when dealing with sellers, right? They say that sticks and stone may break your bones but words will never hurt you. They are WRONG this time!!
There’s something very powerful about a motivated seller telling you what they’re asking price is on a house. It becomes embedded in your mind like a little evil monster, and sometimes it’s hard to shake it. You may find yourself trying to come “close” to their asking price even though it’s not a deal. Don’t try to justify why they’re asking price is fair. You may even not even pursue the deal because they’re asking price is TOO HIGH. This all part of powerful negotiating techniques.
Sometimes, Not Knowing is Better
That’s why I created this great sound bit about why it’s ok NOT to ask the sellers how much they want for their house. OF COURSE they want more than you’re willing to pay (in most cases) – so why do you even bother asking?
I can totally understand asking JUST to see if they have realistic expectations or if they’re BELOW market value right out of the gate. But their words could be very damaging, especially to newbies!
Listen to some thoughts about this topic in the SoundCloud file below, and then start to focus on what REALLY matters when you’re talking to sellers. THEIR MOTIVATION!
No doubt, it takes practicing in real conversations to get a sense of motivation from sellers. But you can start studying the behaviors of motivated sellers right now, so that you’re ready for them when they call.
You don’t want to let a $10,000 opportunity pass you by because of their ridiculous asking price. Learn the ropes by studying Property M.O.B.’s Bad Ass Real Estate Wholesaling Training Program. The next time you ask yourself “What is reasonable to Offer below asking price”, come back to this tip and make yourself more money!
The MOB recommends a very good book about Negotiations. Its called “Never Split the Difference”: by Chris Voss. If you learn this skill of negotiating, then you’ll have the upper hand when it comes to dealing with sellers. Negotiating takes knowledge, skill and practice.
I like it…Although it does contradict what EVERY guru hammers on. Which is, "NEVER SAY THE FIRST NUMBER"
But this definitely makes sense, THANKS Tracy!
We should always be moving in the opposite direction of the herd, Brad!
As a marketer working for people who own 300+ houses and myself personally responsible for hundreds of millions in sales, this is lunacy. Really disagree.
That is your right 🙂 But theres a big difference between a MARKETER and a NEGOTIATOR when it comes to dealing with sellers.
Totally disagree with this. It is the kind of 'don't engage your brain' sweeping and not thought-through advice that will see people losing tens of thousands of dollars.
OR it could actually make them ten thousand. Its all how you use the information to your advantage.
Thank you for this info Tracy. I have been going about it wrong in talking with sellers wasting time with their over-inflated idea of what they want for their house. I had one seller here recently that wanted $200K for a 3 Bedroom/2 Bath in an economy where the same comps are at $75K. So, 1) Sellers either don't really know what their property is worth, or 2) like you said, they think their house is worth more than it really is. Thanks for sharing your experience and knowledge with us. I look forward to learning from someone who knows what they are talking about, someone who has the experience and who has actually done the deals.
Thank you
Personally I seldom ask what they want. I might ask what they owe depending on how the conversation is going. Talk to the seller as an equal, that goes a long way in my opinion. After all we are all humans.. At the end of the conversation I say run the numbers and make the offer. If they take it that’s great, if they don’t NEXT!!!!
I like it. Also live it. Out of 40 homes I’ve never asked what they want. It’s not an option for them to consider when they are a “ don’t wanter” of the property. I work the numbers backward from conservative retail/wholesale add my expected profit
And so on till I get the number I like.
I like it !