Do you like secrets? Here’s a golden one:
However, it’s up to you to use the right words and ask the right questions in order to get your share.
It’s up to YOU to get what you want before you close.
You do that through compelling and timely negotiation. Understand, not all negotiations are a head to head battle. Sometimes a successful negotiation means asking a single question.
However, asking for what you want must come as naturally as drinking a glass of cool water on a hot day, because if the seller even senses a smidgen of desperation, they’ll turn you down cold and might even change their price and terms in their favor.
You have to act like you don’t need it. And that takes practice.
“The minute you are afraid to lose a deal, you lost the negotiation.” –Roger Dawson
In order to get you ready to pocket some serious cash on the real estate table, I offer you a task to hone your skills.
The tip I’m about to share with you was given to me 20 years ago and has since paid me no less than $20,000 in the two decades I’ve been using it.
Here it is:
The next time you check in to a hotel, as the front desk clerk is looking for your reservation, lean in, look around, and surreptitiously say (like it’s a secret between you and the clerk), “This is a really special night. Is there anything special you can do for me?”
That’s it! Just ask the question. You’ll be surprised at the results. Almost every time, I get something for simply asking that question.
That exercise is great training ground for your real estate business. Plus you’ll experience some plush upgrades while you’re practicing. Now, that’s the kind of training I like!
Listen, negotiating has actual dollar-bills-in-your-pocket value.
Don’t underestimate the cash value of your negotiating skills.
Your skills will save you thousands, tens or possibly hundreds of thousands of dollars throughout your real estate investing career. The amount will depend on how confidently and consistently you ask.
Last year a seller told me he wanted $200,000 for his property, which wasn’t a bad price at all. I could have done the deal at 200k, but I prefer to put as much profit in my pocket as possible so I acknowledged his price and asked this question:
So what’s your bottom line?
That’s it. Do you know what he immediately said? I can’t take a penny less than $185,000.
I put $15,000 in my wallet by just ASKING ONE QUESTION.
Sometimes a seller won’t drop in price, and that’s fine, but you need to ask EVERY time.
Ask until if feels like breathing.
Practice asking when there’s no pressure, when there’s nothing to lose. Because, if you only ask when you need a price reduction (the smell of desperation), it’s not going to work very well.
There are many ways to request concessions in real estate, and if you practice asking every time, regardless of need, then you’ll get to a point where you’ll be making money with just about every question you present.
You’ve heard the old adage, It never hurts to ask. In real estate, or any business for that matter, it will hurt you NOT to ask.
So get out there, ask for what you want, and quit leaving money in the deal.