How To Get Price Reductions

If you have done any type of Real Estate or Sales in you professional career you know that sometimes you have to negotiate the price down. This is a normal part of business but it doesn’t have to be a painful part of business.

Why Are You Asking Me To Reduce My Price?
Sometimes people have a notion that their stuff is more valuable than what it really is. This is especially true when it comes to their house. I like to call this the “supreme ownership complex” or “SOC” for short and it can really make negating difficult with the seller.

Here are some sample scripts I use to bring the seller down to earth.

– Unfortunately Mr. Seller, it appears that all of my funding sources are getting a little more scared about the market… so they are limiting what I can pay … and what they are willing to fund properties at.

– Additionally, there are a lot more bank owned deals hitting the market and concern about prices coming down…

– So as a result for us to move this deal forward we’d need a price reduction of $xxx

You may get some feedback from the seller such as…

 

Did You Even Intend To Buy The Property At Our Agreed Price?
– My intention was to come through as agreed .. But these are now circumstances outside of my control…
– And many of the investors that are buying properties are using the same funding sources… so you’re likely to experience that same challenge we have right now …
– However, if we can agree on a price that works …then we can move to quickly close this and get this property off your hands for good.

I’d Rather Just Put The Property Back On The Market?
-You should certainly consider fixing up the property yourself…. You could make more money …. You’ just have to find a reputable contractor … make the repairs… then put the property on the market and wait the 3-6 months it will take to sell and close with a “conventional buyer” … do you really want to wait that long to get this property off your hands?

Posted In : Wholesaling

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