How Finding-Common-Ground Turned My Leaflets Into Bigger Discounts, More Often!
Success in property investing all starts with buying or trading below market value deals. Sourcing direct to owner has been a proven way to find discounted houses in any type of market.
If you want to source multiple properties a month then you need to master 2 key skills:
Finding homeowners that are desperate to sell their house
Agree a purchase price
If you’d like some help finding homeowners that are desperate to sell their house then check out my previous blog posts:
In this blog post I’d like to share with you how to use the secrets of Finding-Common-Ground to negotiate bigger discounts, more often and to have more fun in the process.
Let’s face it, the idea of going into someone’s house and telling them the price that you would like to buy their house for is a scary process. Not least because you know how hard it was to make the phone ring and set up the viewing… so you are likely to put yourself under unnecessary pressure.
You should have done your homework before you view the house. This means you should already know the market value and the maximum you can spend to be able to pull out your deposit and all of your other costs when you re-mortgage.
All you need to do now is create a win-win solution, right?
Nothing could be easier! Ha Ha!
Before we go any further let’s stop to think about how the seller might be feeling.
This may be their first time that they have responded to a leaflet, so they may be more than a little nervous about letting a stranger into their house.
If their house has been on the market for a long time then they may be feeling a strange mix of excitement and fear. They certainly want to sell their house and three months of setbacks have taught them not to get their hopes up too much.
So when you walk through the door, you are doing much more than just stepping foot in their house for the first time.
You don’t yet know if you can help them as you don’t know why they want to move and what they need to move.
The only thing you need to do at this stage is set their mind at ease and you do that by finding-common-ground.
Mastering this skill will make the negotiation process fun, rather than confrontational. It will also mean that you are much more likely to find a win-win solution and agree a price. Why? Because when you have found-common-ground, they start to trust you. It is only at this point that they will tell you why they want to move. This will enable you to negotiate based on what’s most important to them.
Once you can take their attention of the price and help them see just how much better their life will be once they have moved then you are able to negotiate on their values.
So how do you find-common-ground? By doing the following three things:
Match how they speak
Look for clues in the house
Match the words that they use
#1 – Match How They Speak
You’ll have already spoken to them on the phone so you will know if they speak softly and quietly or if they speak quickly and loudly.
The first thing that you need to do is to speak at the same speed and volume as they do. Unconsciously this will make them feel that you are just like them. This is the key to getting them to relax and to begin to trust you.
#2 – Look For Clues In The House
When you look around the house you are looking to see the size and condition of the property so that you can accurately predict the cost of the refurb.
You also need to look for shared experiences or interests. This can be the pictures or painting that they have on the wall. Their music and book collection is another place to find a shared interest.
Ideally you want it to be something that they see every day because this tells you that it is front of their mind and close to their heart. So if they have a huge Picasso print on the wall you could speak with them about modern art, or your love of a specific Picasso painting or period.
Once you can get them talking about their passions and interests it will be much easier to ask them why they want to move. You are also much more likely to get an honest answer from them.
Once they start to see that you are just like them, they will relax. This is when you can both talk like friends rather than adversaries.
#3 – Match The Words That They Use
This is the hardest of the three steps and also the most powerful. So it is worth practicing with your work colleagues first. You never know, this might be the start of a better working relationship with them.
What you are looking for, are words that they use repeatedly.
If you start to use these words in they way that you talk then they will feel like you have listened to them and that you understand them. Please note that this needs to be unconscious on their part. The new words that you will use sill simply make them feel relaxed.
It also means that when you are speaking they are much more likely to listen to what you have to say simply because you are using buzzwords that will make their brain light up.
All of this enables you to show the homeowner that you want to help them have what is most important to them. It enables you to take their attention off the price that they want for their house and focus on why they want to move. This puts you in a position of power and makes them much more likely to accept the offer that you have made. Why? Because it is based on what they want and not just on price.
Please use these negotiation secrets to achieve faster results in your property journey.
To your success