This month I want to continue the line of thinking how sellers think differently than investors. Last month I talked about how sellers believe their property is worth top dollar even though many times they failed to keep the property in good condition.
Once you realize this will be what you will be facing when you first talk to most sellers you will have a better understanding of why sellers say the things they do when you ask them questions, such as “We Want ALL Cash” for our house.
You need to realize that the investor is trying to buy just another house they can make money with, while many sellers are selling a home that has emotional meaning to them if they live in the property. This difference of thoughts and emotion make a huge difference when you are negotiating. As I said before, this isn’t rocket science it’s just a fact of life. When you understand how sellers think you might have an easier time putting together a more profitable deal. By finding out what the seller’s true needs are, will give you a position of power when negotiating your deals. Remember, each seller has just one house to sell and you have thousands of houses to look at and choose from. This is why you are the one in the position of power when negotiating.
More than anything else you need to know why the seller is selling their house if you want to create a win-win deal. You truly are in control of each negotiation. You just don’t realize it. I concluded many years ago that I have lived many years without this seller’s house and if I am unsuccessful making a deal I will probably live out the rest of my life just fine without that house.
Here is a list of things you need to think about when talking to every seller.
- When talking with older people, do they need more cash flow to survive every month?
- When talking with sellers of all ages, do they need money to buy another house? Could you sell them one of the other houses you own?
- When talking with sellers of all ages, find out if they have pressing debt?
- When you find a tired landlord, are they tired of management, tenants and toilets or are they ready to retire?
- When talking with older people or another investor, are they more interested in getting more interest or more money when they sell?
- When talking with sellers of all ages, do they have a personal
emergency they need to immediately take care of or is it a problem that is not an immediate emergency?
- When talking with sellers of all ages, usually young people, do they need cash to buy a different car or other important item they need?
- When talking with sellers of all ages, do they need money to pay for a medical debt? If this were the case could you agree to pay that medical debt in small monthly payments to the doctor or hospital?
- When talking with sellers of all ages, are the sellers having financial trouble taking care and maintaining the property?
- When talking with sellers of all ages, are the sellers having trouble making the monthly payments or paying the property taxes?
- When talking with young to middle aged sellers, have they had a job transfer to another area? Are they making two house payments?
- When talking with sellers of all ages, are they about to lose their property to foreclosure or bankruptcy? Are they desperate to sell?
- When talking with middle age to older people are they downsizing and want to move into a smaller property with lesser related costs?
- When talking with sellers of all ages, are they deep in debt and extremely credit conscious and are most interested in saving their
Once you understand what each seller’s reasons for selling their property will be essential in being able to give the seller exactly what it is they need to solve their immediate problem they have in their life. Understanding how sellers think will be essential when you are negotiating to buy their house. You must find out exactly what every seller wants or needs before making your offer to purchase their property. If you solve the seller’s problem in their life, you stand a much better chance of buying their house and having a win-win situation for both parties.
Until Next Year, Happy Investing!