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I know one foreclosure property; can I make an offer to them? Or Can I bargain on the price they have menti?
I know one foreclosure property; can I make an offer to them? Or Can I bargain on the price they have mentioned?
Go through the proper channel. If it is a bank ask the bank when is the auction.
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**Short Sale In Process ** 4219 Blanton Ave Atlanta Ga Must Sell Make Your Offer Now 678.851.4485
Real Estate Investors: How to Make Offers and Use the Range Technique to Save Tons of Money
Step four is a negotiation of price. I'm going to go into a couple of things here and these are really great techniques.
One of them is you want to simply ask what the person wants. If you remember the "WOWWW" formula last week, one of them was what do they want? As we talked about it last week, it's probably one of the least important items because ultimately you're going to probably negotiate that number down quite a bit.
Let's say the seller says, "I want $140,000." (I'm just throwing a number out there.) Then you would go through what's called the Three R's. This is a negotiation technique that you need to repeatedly practice on. I'll list them and then explain what they are.
1. Range Technique
2. Realistic Technique
3. Real Estate Agent Technique
You can do all three of these right in a row, just like that. You can do one and not the others but you can do all three.
Range Technique
The Range Technique is somebody says, "Yeah, I'd like $140,000." You, as the potential buyer, would say, "Okay. I appreciate that. You'd like $140,000, so what we're talking about here is you're thinking about somewhere in the 130ish or 140ish type of range. Is that correct?"
Did you guys see what I did right there? Hopefully you did. Where we started out was he said $140,000. I immediately changed the conversation to be, "Okay, so you're looking somewhere in that 130ish or 140ish range."
Do you see the power of that? We changed the range now from $140,000 to 130ish to 140ish. I've already started to put in his mind 130ish.
He may give me a little push back and he may not. One of the ways to get through this is and the power of this technique is you need to be able to move through that fairly quickly. Maybe don't let the other person have a moment to respond. They might.
If somebody says, "I want $140,000" and you come back and say, "I understand you're looking somewhere in that 130K to 140K. That might be doable. Let me think about it a little bit. Let's talk about it a little bit further."
You try to move the conversation right on. If you simply stop right there, all the sudden he has a moment to say, "No, no. I said $140,000."
If you can say 130ish, 140ish and move right on and maybe talk about it again once or twice, you start to ingrain that range as the new number. This is called the Range Technique and it can be used on anything. If you want to buy cars or whatever, this is a great technique. People won't even understand what you're doing. They won't even comprehend it because they figure it's just part of the conversation.
About the Author
I invite you to learn more about Private Money Lending and get my new FREE 20-page ebook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by clicking here http://realestatewealthtoday.com/FREE-eBook.html . Mike Lautensack is a full-time real estate entrepreneur and creator of the Private Lending Presentation Kit. To learn more about this kit go to Private Lending Presentation Kit.
