Wholesale Property Buyers: How to Negotiate With Them
Those who are successful in the business of wholesale real estate know that developing skill in interacting with the parties involved in any deal is key to that success. If you’ve contracted for the purchase of wholesale real estate properties and you’re interested in selling to wholesale property buyers, honing negotiation skills is well worth your time and energy. You may have a wonderful piece of property to offer that meets the potential buyer’s needs, but if you fail to be transparent with that potential buyer and treat them with respect, they are not likely to fully comprehend the value of your offer, and they’ll go somewhere else. Learning the type of wholesaler behaviors that help you close deals is the roadmap to building a good business reputation and a lucrative wholesaler business. If they say “you make your money when you buy the property”, then you can’t withdraw the money without wholesale property buyers!
Know Your Property
In any negotiation, knowledge and preparation are both power. As a wholesaler who has contracts for properties to purchase, a thorough knowledge of every detail of your properties is crucial. Any potential buyer will probably have many questions to ask before they even show up to see the property. They will want to know if making that trip is even worth their time and energy. Be ready with the basic things the potential buyer will want to know, like what kinds of repairs it will need and how much they are likely to cost, to name a few. Know the neighborhood and how much people are paying for houses by researching comparable prices through websites such as Zillow. Also, it’s important to know about the property’s history such as any work done without a permit which may not be up to code, any property line disputes that may exist or any current problems with the property like termites or leaky windows. Being honest about these things will help you build a reputation as a trustworthy seller and can attract more wholesale property buyers for you in the long run.
Meet in Person and Understand Your Buyer
It is much easier to establish a rapport with a potential buyer if you arrange to meet in person rather than trying to negotiate over the phone. The body language and facial expression that you display during the negotiation process is probably more important than you realize. Starting the meeting with a bit of small talk is not a bad idea because it gives you a few minutes to get to know your buyer and to allow them to get to know you. Dress appropriately for the meeting and show a friendly interest in the buyer’s needs. Allow the buyer to voice his concerns openly so that you can problem-solve together. Your buyer may find that the property you are now discussing will not be the right one for them, but you may have another one that is, and you can’t determine this until you have a conversation in which both you and the potential buyer are active participants.
Listening is Learning
A skilled negotiator often spends more time listening than they do speaking. If you eagerly or anxiously present the information about your property to the buyer without letting them talk, you won’t learn anything about them. You need to allow some spaces of silence in the conversation to give the potential buyer the opportunity to provide you more useful information about themselves.
Rather than giving a canned presentation about your property to the potential buyer, simply make a few leading statements about it or ask a leading question, and then, let the buyer do the talking. This will allow you to know what they’re really looking for and how your particular property can meet their needs. It will also give you the opportunity to present your knowledge of the property you’re offering in a light that is synchronized with that. This enables you to both give the buyer all the information that you have and also to build their trust in you, so that it’s more likely you’ll come away from the table with a successful deal.
Don’t Take it Personally
Since wholesale property buyers, wholesalers and sellers of property have a lot of money, energy and time invested in the endeavor, everyone’s emotions often get involved in the negotiation process. Before the negotiations begin, create a mindset in which you are fully prepared to accept a realistic price that coincides with the homework you’ve done on the property, and start with a positive attitude toward the buyer. It doesn’t hurt to even compliment them a little on their buying, business and negotiation skills.
Making someone else feel good about themselves can go a long way in the negotiation process, and if your potential buyer has doubts and fears about the property you have to offer, it will also ease their mind if they believes you respect them. In wholesaling, it is crucial for you to keep your wits about you. Allowing your emotions, hopes, fears or ego to get in the way of a good business deal is not going to aid you in obtaining your objective in making a transaction happen.
Being a truly great real estate wholesaler, takes practice. A lot of that practice will involve developing the insight to negotiate well with potential buyers of the properties that you have to offer. Always come prepared with knowledge and a good mindset. Developing business relationships with potential buyers is at the core of a successful wholesaling business, since your buyer is the person at the end of the line of any deal you make. Also, remember that the deal doesn’t end with closing. It goes on for years after that, as your buyer either loses or benefits from owning and/or reselling the property that you sold to them. Every time you negotiate with a buyer, try to make sure they will have fond memories of you long after the deal is done.