When we buy houses Buffalo area sellers who are motivated make some of our best transactions. However, they are not a sure thing. The first step is to have an in-person meeting. During the meeting, your goal should be to present what you can do for the seller with tact and pragmatism. You will want to be honest about the fact you are an investor but deliver that and all other information strategically. Every time you meet with a motivated seller; you are walking into a ripe opportunity.
They need to make a deal, and you want to close a deal. Following these five steps will help to make sure you have a meeting of the minds:
A person may desperately need to sell their home, but that does not mean they will sell to just anyone. They are most likely to work with a person who makes them feel comfortable. On the meeting day, don’t mosey up in a three-piece suit. The goal is to be relatable and build a rapport, not alienate the seller. Dress appropriate, but don’t be over the top.
Resist the urge to lead with a conversation about numbers. When you go in, make small talk, but be natural and calculated. You want to make them comfortable and gather the information you need for negotiation. Inquire about the neighborhood. Be genuine and personable. By the time you have a seat, they should feel at ease with you.
The conversation you have with the homeowner will provide you the information you need to form an attractive offer. Some information will just be confirmation that your research was solid. Other information can give you insight into why they are selling, or how they ended up in a distressed situation.
Pay attention to their answers and ask for additional details. Offer advice if you can. Although there may be information you need, you want to present your questions in a natural conversational way. It is important not to appear to be insensitive or offensive. The blueprint you lay out for dealing with motivated sellers needs to leave room for flexibility.
One of the most common mistakes investors make is that they rattle off questions with no real interest in the responses. However, as the seller talks, they will reveal to you what they really want from the sale and if they are ready to move forward. If you are not paying attention, you can miss valuable information that will strengthen your negotiating power.
Allow the homeowner to share as much as they like. If they want to talk about their situation, lend a compassionate ear. Make mental notes of what they are saying. Also, realize you will need to reciprocate. They may have questions about you and your legitimacy.
Distressed homeowners can have inflated expectations. If you find you are at opposite ends of the price spectrum calmly explain your valuation. Also, pinpoint why their number is significant to them. If there something creative you can work into the deal to help meet that need while agreeing on a reasonable price, identify it.
Help them understand your offer is reasonable and designed to get as close to their overall goal as realistically possible. Sharing comps with them, in a non-technical way, can be a last resort. Also get a feel for their desired timeline. If they are asking for a six-month move-out, and you want two, delve into their motivation. Help them bridge the gaps between their goals and what is actually attainable.
You may not walk out of the meeting with a deal, however, know where you stand. If you have to make a hard sell, it is not worth it, but also know some sellers will need you to gently press for an answer. The best approach is to tell them to consider your offer and let you know by a certain date. Make the date far enough in the future that they can really mull your offer over. Remember, for you, this is business, for them, there is an emotional investment and decision about their personal future.
We hope these tips help you negotiate the best term and close deals with motivated sellers. If you are a homeowner looking to sell your house fast Buffalo is one of the areas we are actively investing in. Contact us for more information.
We help homeowners however we can. If you’re looking to sell your home quickly, contact the experts at Arcane Properties and see how we can help you.