301 - The Spin-The-Pad Negotiation Technique

Cash Flow Guys Podcast

Nobody enjoys making low ball offers - Let’s be honest….its painful!

Brokers / Wholesalers / Sellers always “guess” at the asking price, that’s right, I said guess. Why do I say this? Because it’s true, let’s think about it for a minute. The Realtor does a market analysis and /or the seller is super savvy and gets an appraisal to help them determine the fair market value of their home. In almost every case, the seller will boost that valuation up a little to leave room for negotiation hence a “guess” when it comes to the asking price.

I’d like to think that Key West Realtors are crazy in the pricing down here but they’re not. Homes actually sell for more than the asking price in many cases which tells me that the buyers feel the homes are worth more than the sellers and brokers do! That’s a great thing when you’re on the selling side of the transaction for sure!

I’ve never met a seller, wholesaler or real estate agent who was happy to hear that you feel the property they are selling is “overpriced”, so, why bother discussing that topic at all?

I suggest a “softer” approach...take copious notes, get detailed in note-taking and ask lots of questions. If the property is a rental property be sure to document ALL of the expenses that the seller is willing to provide and add the ones they tend to forget about (such as property management)

Get all the data available, refuse to make an offer without knowing each and every expense on the property (crazy sounding I know).

Then...Do The Math WITH the seller or agent., yes, I mean spin-the-pad, ask the seller or broker how to make this work...subordinate yourself, and prepare to have a fruitful negotiation.