Although I haven’t found much value in being a licensed real estate agent in my roll as a real estate investor, this week I was able to implement a negotiating strategy taught to me by my former broker. It worked countless times when I was representing home buyers and sellers as an agent, and it worked this week as an investor putting five figures in my pocket. Hmmm… So I guess all that work as an agent wasn’t for nothing.
The concept is to “Don’t let the ball bounce twice in your court.”
I encourage new investors that I mentor to start practicing presenting Offers to Sellers that NEED to sell. Yes, I did put the word “need” in all capital letters. As an investor, it’s important to work with Sellers that need to sell as opposed to those that “want” to sell, but that’s a subject for a different time… just thought I’d throw it in there.
The next step is to practice presenting Offers in a way that the worst case scenario is that the Seller Counters the Offer. A major mistake I see investors make is they get emotionally involved in the negotiating process, eventually become insulted by the other party’s Offer and then fail to send another Counter Offer back.
Don’t do that!
As in the game of tennis, every time the ball lands in your court… hit it back.
If you receive an Offer as a Seller and you don’t like it, Counter back.
If you receive a Counter Offer as a Buyer and you don’t like it, Counter back.
Keep Countering back until you reach an agreement or the other side stops playing. Even if you’ve hit a limit on the terms you’re willing to accept, Countering back with those same terms over and over and over is allowed.
After the second Counter Offer I received this week, I was pretty sure there wasn’t going to be a deal. I kept hitting the ball back and after four Counters, an agreement was reached, a profitable agreement for both sides.
Keep the ball in play and don’t let it bounce twice in your court, for if you do… you forfeit a game that might’ve been won had you just hit the ball back one more time.