5 Ninja Tactics For Seller Negotiation S...

ninja True or False…

Sellers never overprice their properties, especially those that need a facelift (the properties, not the sellers).

If you fell off your chair laughing, your reaction is completely warranted. It’s comical, right? Sellers ask way too much for properties all the time! As investors, we see it time and again, and if you haven’t experienced the joke firsthand yet, I assure you your day will come.

So the question is, how do you deal with sellers who overprice their properties? Do you laugh in their face? You may want to, but I strongly suggest waiting until happy hour to chuckle about it with your buddies.

What you do, instead, is negotiate.

Hey Moguls, its Jamel Gibbs – real estate investor, marketer, serial entrepreneur and coach. Recently, I shared helpful info in this awesome lesson about easy seller marketing. And because you followed my advice, leads came in and you’re now ready to negotiate like a ninja with motivated sellers.

So are you ready? Grab your nun chucks or Katana swords (I was a fan of Teenage Mutant Ninja Turtles, what can I say?), and let’s start laying the smack down on seller negotiations!

Tactic #1 – Know the Why

Before you do anything, you’ve got to understand the WHY. Before you talk with sellers, know why they are selling.

Here’s a great tip – build relationships with as many Realtors as possible and watch how easily they will become bird dogs for you. It happens, really it does, without you even asking! They will think of YOU, and send YOU the lead when they can’t sell a property.

Remember, even though you’ll know what the deal is, you’re going to play dumb. You want sellers to know you’re interested and to feel that you’re engaged. So ask and don’t tell that you know anything.

Tactic #2 – Low Ball the Offer

negotiate Once you know the why, you’ll get a sense of just how motivated your seller is. And that’s when you low ball the offer. Do you risk the seller being offended? Possibly. But if you understand personality types, and you know how to effectively communicate, you can turn the negative reaction around quickly.

The bottom line is this – if your seller doesn’t get his or her underpants in a wad over your offer, then you’ve offered too much.

Tactic #3 – Show & Tell

The seller has a right to know why the offer is low, so explain why. Let them know you want to pay market value for the property and then compare it with other comps in the area. If the property needs work, explain further that fair market value of the property would be less than the houses in good condition in the area.

Tell, then show. Share photos of the mentioned properties that sold, and put sellers on the spot. Let them answer their own questions. Does their home offer the same amenities, features and curb appeal as the others? This opens their eyes and gives them the reality check they most likely need.

Tactic #4 – Put Your Foot Down

Once you know your price, stick to it. If your seller won’t budge, then encourage him or her to sleep on it. Chances are they will come around.

Tactic #5 – Patience Means Payment

Give your seller some breathing room if they need to swish your offer around a bit. If they stand their ground, offer to meet in the middle. Compromise is key, and it will mean you can close the deal quickly, so bend… but don’t break.

Well, there you have it, friends. Your 5 ninja negotiation tactics. The more you practice these, the better you’ll be and it will soon be second nature. Get to it!

Are You a Negotiating Ninja?

Have you used these tactics and been super successful? If you’ve got a story to tell or if you’ve got your own ninja warrior tactics, leave a comment below.