How To Negotiate Real Estate Price
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How To Negotiate Real Estate Price


Hey, friends. Have you ever wondered how
to get the very best deals in real estate? Well today, we’re gonna talk about
how to negotiate the very best purchase price. Hey, friends Stephen Michael Miller
here and today we’re gonna be talking all about negotiating and really getting
to the details of the deal and trying to find out if this is a deal that’s even
going to necessarily work for you. Before I jump in too far, I want to show you a
quick question that we got from somebody named Tyler. Hey, Kris. When you go to
purchase a home through a personal owner, do you tell them that this is going
to be your investment property? Alright, we’re back. So really the question here
that he has and I’m gonna get to some of these other points here in
just a minute but the question that he has is, do you tell the individual that
you’re going to go buy the home from that you’re looking at the home with, do
you go and tell them that you are an investor? And I want to answer that in a
couple different ways but i’m going to start by first of all, telling you that
no matter, what you want to make sure that you’re honest in everything that
you’re doing. I’m telling you right now, people can smell dishonesty, they
can feel it, it shifts the energy in the room so if you try to tell them, hey, I’m
buying this home for myself but in reality you’re an investor, they can
sense it, they know it and they’re just gonna push you away, they’re just not
gonna want to do business with you so above all and all things please be as
honest as you could ever be which just means be honest and everything that you
say, right. Just go forward with that foot forward. With that in mind, it’s best as
you’re going into a negotiation to really before you go in and tell them
all of your purposes and everything that you want to do with the home, don’t even
worry about that. The first thing that you want to go into and the best way to
negotiate is to find out the needs of the seller, right. So if they’re selling
the home, they’re doing it obviously for a reason, my biggest question is why are
they selling the home? What’s their motivation? How fast do they need to sell
this home? What price points are they really looking for, are they needing? What
are they owe on the home right now? And is that relevant or not for you, right? I
mean, there’s all these different questions.. Negotiating,
the best negotiating happens as you find the paying points in and you offer up
solutions. If you haven’t found any paying points yet but you’re going in and
saying hey, I want to buy your home, I’m an investor and I’m really excited and
I’m gonna put a, you know, I’m gonna change this step, the other thing, you
know, if you’re going in there with that type of energy, it could turn off a
seller even if they’re motivated to sell, maybe they’re really emotionally tied to
the home, maybe they want the home to be, you know, sold to a really good family,
you know, there’s a lot of reasons why you may not want to lead with that type
of force or that type of energy so my recommendation is number one, find out
what their needs are first. I actually have a friend who just got into a
property and he was looking at it for investment purposes but before he told
him any information, before they even asked him, he just asked them, hey, why are
you selling the home? Tell me about your story and he was willing to
listen. Now pause for just a second. I know I’ve already said this but
listening is one of the most important things that you can do. A lot of
investors, because they’re so enthusiastic, they skip past this
really crucial element but back to the story, because he was willing to listen
and really take some time to hear their story, they opened up to him, they told
him all about how, you know, their parents were moving out because the
home was way too big for them, they were actually moving in with some of their
children, they’re moving into a different state, all these different things there.
So they were basically combining two different households into a different
state, they just needed to sell the property they owned. I think the home
outright but they just needed to get, you know, they were selling it at
a discount or willing to sell it at a discount because they were on a
time crunch so because he found all this information now, he thought to himself,
well how can I help these people and how can I get the benefit I’m looking for as
an investor but help them in the very best ways possible? So we told them, look,
I can actually, I can help you in the moving process because they were saying,
like, we’re in a really big time crunch, we’re just gonna, you know, we’re wanting
to sell all this stuff off, we’re gonna do this that and the other, we want to
get out of this home, he said, look, I’ll manage the sell of all the property, are
you looking to get something out of it? I said, no, you can actually take it and so
they basically gave him almost every all the
contents that were inside the home, they said, you can sell it if you want to, he
actually said, hey, I’ve got a friend who runs a charity, I can donate a lot of
this to that charity and they were super excited about that, it opened up so many
different opportunities on his end and they were super excited about being able
to help other people as well and he said and I’ll take care of
everything for you, just go ahead and don’t worry about it, I’ll take care of
this, I’ll be able to get it. I will guarantee you the monthly payment that
you’re looking for, would you mind if I actually rented it from you for a while
and then down the road, you know, I purchase it from you later for X
amount of dollars, giving you what you need as well as me the time that I need
to be able to do what I want to do with it? They were totally open to it so
the point is here, is before he went into any of his strategies and what he was
gonna do and I don’t think he even had to go into the details of everything, he
basically, he listened to them, he found out what their needs were, he found out
what their pain was, what the pain points were and he offered up really great
solutions to that pain. He asked questions, he was very upfront and honest
with them and, you know, what he was doing and because of that he got what
could have been and because of that, he got into a deal that otherwise he may
not have ever gotten into because he may not have ever found out what the true
pain was and been able to offer up that solution so back to the question from
Tyler, should I tell them that I’m an investor? I’d say if they ask you, tell
them. If they don’t ask you then really start asking them as many questions as
you can, find out as much as you can about the property and look to link a
solution that you have to the problems that they’re putting up and
if you can do that, you’re gonna find a great deal almost every single time. Hey,
friends. Thanks for watching. I would love to give you more and more and more. If
you haven’t subscribed to channel yet, please do so. If you’ve got any
comments or any other questions about negotiations, put them in the comments
below, we’d love to hear from you.

11 Comments

  • Volition

    Thank you for what you do Chris 🙂
    You are really changing the world for the better. If you are someone like me who doesn't know what to do on the side of YouTube you know that coming here is the best place to make good quality money

  • RainBoKatchr

    Question on lease options: How do you protect your investment from hyper-inflation? During that two year time-frame, a lot can happen in the economy. If I look to sell a home via a LO and the tenant-buyer and I agree on a price, however, what happens in the event of the dollar going massively down in value?

  • BlakeJr

    Hey Kris and Stephen, my question is…. How can I do Real Estate, when I want to own a Restaurant that needs my attention? This restaurant is very well established so it would be at a high price.

  • Zane Ellwood

    Kris and Stephen, how as a 14 year old teenager can I start to maneuver my path towards success? How can I start finding mentors and building the right education at my age?

  • Prathik Pradeep

    Hi I have a house in India and I've finished all my payments towards that house
    I was wondering if I could still use the equity to invest in a new house

  • john shlymoon

    Hey man I have a question if I borrowed money from the bank and buy a house then I sell the house.
    If I want to buy another house I should pay all my mortgage to the bank , theeen Tried to take another loan for the next house, or the bank simply doesn’t care about How many houses I buy if eventually payed all my debt.
    Please reply if you have the time thanx for the great videos

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