For many wholesalers, one of the most challenging aspects of dealing with sellers is negotiating price. How do you get sellers to reveal the price they want? How do you negotiate in a way that is non-confrontational? And how do you build rapport while helping them see where you’re coming from in terms of price?
If you consider price negotiation an Achilles heel, you’d surely love today’s episode. Virtual Investing Mastery’s awesome coach, Lauren Hardy, has mastered the art of negotiating price and in this episode, she shared 5 of the most effective seller negotiation lines she personally uses!
Time to bring out that pen and paper again and start jotting down Lauren’s proven lines, tips, and even rebuttals! Start using the lines and applying the techniques Lauren shared and it would only be a matter of time until you’ll master price negotiating yourself!
- When delivering price to seller, start out with a price range
- Always ask seller how they came up with their price
- Deliver an offer in a manner that is non-confrontational
- Break down barriers by admitting if you’ve messed up
- Bring up the idea that you expect seller to know the neighborhood better than you do
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
Subscribe to Wholesaling Inc
Hey, what’s up guys? This is Lauren Hardy. And today we’re going to be talking all things virtual real estate investing. Today I’m going to tell you my favorite lines that I love to use to negotiate prices with sellers. These are lines that I like to use to discuss price, to get the sellers to reveal the price they want, to get the sellers to share with me how they came up with that price. So, I’ll just get right into it. This is going to be a little bit informal, this is kind of me going off the cuff, just telling you things that I like to say when I talk to sellers. Now, I have spoken with thousands of sellers and I have competed in some of the nation’s most competitive real estate markets with some of the savviest sellers. So, I have really refined my tone in the way that I speak with sellers, I speak with them in a way that is very non-confrontational, very rapport building, but also gets my point across and gets them to see my perspective on pricing.
Here we go. Here’s number one. When I deliver a price to a seller, I like to first start out with a price range. So, this is what I say. I go, “Mr. Seller, thank you so much for talking with me today. I’ve got that offer for you. I was able to actually look at the area and look at comps and it looks like investors are buying properties just like yours in the area for between 50 and 65,000. Does that make sense to you?” And then I pause. So, you see how I ask them, “Does that make sense to you?” It’s very non-confrontational. The seller is either going to say, “Yeah, that does make sense,” or they’re going to be like, “No way, houses are going for way more. I know my neighbor sold on the market for 85,000.” When they say, no, I respond with, well, what does make sense?
That is my opportunity to get the seller to talk price, because sellers are often very tight-lipped about the price, they want you to share before they share. It’s kind of I’ll show you mine if you show me yours kind of thing. That is something that I like to say right up front, it’s one of my first lines of when I deliver price to a seller. When the seller then responds with their price and say, “It is something that does not meet my needs,” I will respond with, and here is number two, “Okay, well, so how did you come up with that price?” All right, stop there. Often they are going to say something like, “Oh, well, I spoke to a realtor and they told me that price,” or they’re going to say, “My neighbor sold on the market with a realtor and they got that price.”
So, if they say anything like, “I spoke with a realtor and that’s the price they told me I should sell my house for.” My rebuttal to that is, “Okay. Well, realtors are not appraisers and realtors like to get listings. So, they will usually give a seller the highest price, because it really doesn’t matter. It doesn’t harm them, if they don’t sell it really at that price, no matter what they get the listing from you and they get paid.” So, that’s usually how I would respond to something like that. And if they do say something like, “Oh, well, a neighbor sold their home for 85,000.” I say, “Well, they probably sold it to a realtor. They probably sold it to somebody who was actually going to live there.” And I remind them that, “Hey, I’m an investor. We buy these properties to turn around and resell them as investments.”
So, that is number two. Let’s get right into number three. This is what I like to say when I am trying to tell them a price that’s a bit of a low-ball. I basically say it like this. I go, “Could you see yourself taking 50,000?” And I stop there. I like to say, “Could you see yourself?” It’s just a non-confrontation way to say the words, 50,000. It’s a non-confrontational way to deliver an offer to them in a way that is more of like, “Could you see yourself doing it? Well, what could you see yourself taking?” So, if they say no, it’s like, “Well, what could you see yourself taking?”
Number four. So, say they give me a price and I give them a price, they give me a price, we’re not on the same page. I will stop and say, “Okay. Well, let me look back at the comps, maybe I messed up. I’m going to look back at the comps and see what other investors are paying in the area and I will see if we can make that price work. And I’ll talk to my partners and I’ll get right back to you.” I love saying, “Maybe I messed up.” The reason is it really breaks down walls, it breaks down barriers, it makes the seller realize that I’m human too and they don’t need to have their armor up, they don’t need to have their guard up. It really does break down those walls. And we’re really looking at each other like people and they see that, hey, I’m just a person too and I mess up. I love doing that, I love admitting that, hey, I’m human, I mess up because shoot, I messed up all the time.
And in fact, you might have messed up, you might be able to take the price that the seller wants, you might have looked at the wrong comps or figured out that, that house is different than the comps that you were using. So, it’s okay to admit to a seller you’re not perfect and you might’ve messed up and you want to relook at comps and see if that price would work. And if it doesn’t work, you want to give them the opportunity to go for a price that might work. So, basically I really like to come from that standpoint. I think that it is a really cool non-confrontational way to discuss price.
And now let’s go to my fifth way of getting the seller to give me their price. So, often a seller… This is what I say when a seller is super tight-lipped. I try to ask them their price or get them to reveal their price in three different ways. So, this is another way. I say, “Well, Mr. Seller, you know the neighborhood better than I do, given that you’ve owned this home for 10 years here, what do you think is a fair price?” I let them answer and then I say, “Okay. Well, how did you come up with that price?” Again, I always ask, “How did you come up with that price?” So, I think bringing up like, “You know the neighborhood better,” it’s like, well, you should know the neighborhood better.
Often times a seller will come at me and say, “Oh, well, you called me about this house, you should know what prices are.” And I rebut with, “Mr. Seller, I buy a lot of homes in a lot of different neighborhoods and I can’t possibly know every neighborhood, but you do because you own a house in this neighborhood. So, you tell me what price makes sense.”
That’s it you guys, those are my five favorite lines to discussing price and opening up those conversations about prices with sellers. If you guys like what you heard today, please subscribe to this channel. And if you want to learn more about my virtual investing coaching program, I want you to go to www.wholesalinginc.com/virtual. Thank you.