Apr
25

How to Maximize Your Profits When You Sell Any House

Filed Under Real Estate Investing 

It amazes me how many people spend countless hours finding a deal, fixing it up, and then when they go to sell the house, they become dumber than a box of rocks.

What is the highest paid profession in the world? Sales. No surprise there. If you are selling a house, what profession are you in? Sales. Now, the big question…How much sales training have you had? For most people the answer is, “Little to none.” For those that have had some training, often the training was inadequate (if you want a great course on sales and negotiation get the book by Roger Dawson, “The Secrets of Power Negotiations”). But, right now let’s learn how to make the most of face-to-face negotiations with 4 simple techniques.

Example: You own a home and want to sell it for $X. You’re meeting with a prospective buyer. Inevitably the question of price will come up and there are several things you can do to maximize your position and your ultimate gain.

4 Magic Negotiation Techniques Anyone Can Master

  1. The Cringe. This is my personal favorite. The buyer has just made you an offer, now the ball is in your court. Imagine that you just took a big gulp of sour milk and it would be socially unacceptable to spit it out. Your body is repulsed by the distinct sour taste, but you have to swallow the sour milk. Your face contorts, your stomach tightens, your eyes squint and your entire body stiffens and then you swallow the pungent milk and then you make a muffled grunt…”oughhh.”Now, that’s “the cringe” and after the making the muffled grunt you remain quiet.The silence will be awkward, and the buyer will sense your displeasure with their offer. With only one grunt and non-verbal communication you’ve put yourself in a position to negotiate upward for the property. The buyer will likely volunteer a higher price if you give them time.
  2. The home is probably worth more than I’m asking: After the buyer has made you an offer, you reply, “The home is probably worth more than I’m asking.” This simple sentence helps establish the value of the home and implies to the buyer that the price is already at a discount and a great deal. It’s a polite way of holding your ground and keeping the price up.
  3. Blame your partner: After the buyer has made you an offer, you reply, “I don’t think there is any way my partner (wife, company, brother, dog, etc.) would accept that.” When a buyer wants a house, they are looking for reassurance that things can be worked out. By placing the decision on your partner you are in a much better negotiating position. This is a version of “good cop, bad cop.” You can further add, “I might be able to get them to consider $X, would you like me to try?”Does this technique really work? Well, have you ever been to a car dealer to buy a car? It’s no accident that the car salesman has to go to his boss with your offer. Several times he’ll come back with “I tried, but we just can’t make that work. If you could offer $X I think I could get the finance manager to approve it.” This back and forth process drives the price up and maximizes their gains. They know the game so well that they won’t let you sit with the decision maker because that would cost them money! Now you know this trick.
  4. Split The Difference. Many buyers have to make an initial offer so they can feel they have negotiated. If all else fails, and you are willing, you should offer to split the difference between their bid and yours, or the asking price. Often this will be what they EXPECTED and you’ll be able to complete the sale. But, splitting the difference is the last choice. You give away profits you might be able to capture using one of the other negotiating techniques.

There is no doubt that saying a few words, picking the right strategy, or using the right expression can be worth thousands of dollars to you per deal. Imagine the cumulative effect over your lifetime? These techniques and many others are covered in my system, KickAssWholesaling, a complete system for wholesaling houses, and Real Estate Profit Pro, the ultimate system to automate homes-buying in less than 5 minutes. Check them out at www.kickassrealestate.com.

One final lesson. Did you notice that in some places I used the word “home” and in other places the word “house”? This is no accident and an example of smart selling technique. Whenever I’m buying, it’s called a “house” and when selling, it’s always a “home.” Why? Do you live in a “house” or “home”? Which has a stronger emotion attached to it?

So when I’m buying it’s a “house,” because I don’t want the seller hanging on their “home.” I want them to disassociate with the building and calling it a “house” best serves that purpose. When selling, I want the buyer to fall in love with their new “home,” a place where beautiful memories are made. And, in this case a “house” just doesn’t cut it.

Author: Gerald Romine

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