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.
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 real estate agent technique. Be sure to practice this technique and you will find a quick 6% reduction is as simple as asking for the price reduction.
Third "R" - Real Estate Agent Technique
This is a very powerful technique. What's great about this technique is it's so simple. You say, "Okay, $125,000. That is your asking price. Obviously you're aware if you were to sell that through a realtor, the real estate agent would charge you 6% - 7% commission, right? Obviously you are aware of that because you just had the place on the market."
What is 6-7% of $125,000? I don't know what it is. Let's say $8,000. You say, "By the time you're done with the real estate commission, some other fees and what not, you're probably talking like $115,000 net. So you're comfortable with $115,000 net?" That becomes your new number.
If you see any resistance from the seller, be sure to pull out a piece of paper and then do the math for them so they can see it spelled out in front of them. Start with the 125,000 and multiply by 6 percent and then subtract that from the $125,000 and be sure to circle or highlight the new number and focus your conversation on the new number you have calculated and not the old number.
Did you see how I started from $125,000 to walk him down to $115,000? Did you see how I did this through a series of conversations and techniques? If the guy's not motivated or the real estate market hot, then obviously these techniques are not going to work nearly as well. In order to make them work, your timing has to be right and the seller has to be motivated to sell his/her real estate property.
If this individual is truly motivated and needs a sale - needs a sale, not wants a sale - if you've pre-screened him/her and you've developed a rapport with the seller, then believe me, these techniques work. I guarantee you that. You have to practice them. It's not going to come out the first time.
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