Real Estate Investors: How to Get a Seller to Instantly ?Realize? Their Selling Price is Too High

There are three techniques in the negotiation of purchase price with a seller that can dramatically reduce the price you pay. The three "R" techniques are the range technique, the realistically technique and the real estate agent technique. In this article we are going to explain the realistically technique. Be sure to practice this technique and you will find a quick price reduction being offered by the seller without even asking.

Second "R" - Realistically Technique

Here you say, "Mr. Smith, I understand you're trying to get maybe around $130,000 or so. Mr. Smith, given the economy and what's going on in the world right now, what are you realistically expecting? Really, what are you really expecting to get?" Make sure you emphasis the "really".

That's it. You shut your mouth at that point.

Everybody knows the economy is bad, the real estate market is struggling to recover from the poor economy, and all these other things are going on in the world that contribute to the situation. Nobody can deny it. He knows he is asking too much at the beginning so you have to take the steps to reason with him to move him to a lower price.

However, I started at $130,000 and I asked, "What are you realistically expecting?" Then you have to shut up and be quiet. This is where discipline comes in. You've got to be disciplined. You cannot open your mouth. You've got to let him/her have a few minutes to think of their answer, because this is a process. They have a number in their mind that they really want.

They may want to hide that fact a little bit, but if you ask a pretty direct question of what they realistically want, they'll tell you. You have to let them develop that moment and let them figure out. I trust this guy. We're in rapport. I just spent the last 20 minutes telling him how I can't sell it, so what's the difference at this point? I might as well tell him what I really want." This is a critical step.

Let's say for the sake of argument here in the conversation the guy says $125,000. "I agree, I understand the market's down. If I can get $125,000 I'd be okay with that."

You go, "Okay, great, $125,000, I understand." Then you move in to the third R, the Real Estate Agent Technique. This simple technique just saved you $5,000.