How To Negotiate Real Estate Price - YouTube

Kris Krohn here with Limitless Wealth TV and today, we're talking about how to

negotiate the price for real estate.

Hey everybody, it's Steven Michael Miller and we are here with Kris Krohn and

Limitless TV and how to negotiate a property. - Dude, that was my line. - Yeah, but

you almost gave me a wet willy. - Okay, but I didn't. - Let's do this, okay. So how do

you do this? How do you negotiate a property? This is one of those things I think

everybody who gets started in real estate wants to know, I want to get the

best deal so how do I make it happen? - So if you want to negotiate the best deal,

you got to understand how negotiating is going to go down. First of all, in our real

estate world, people are normally represented by realtors. Steven for

example, he's one of our in-house resident realtors. So if Steven is my

realtor and helping me to go negotiate a property, that means that I'm the buyer

and if Nate who's filming this, he's the seller, Nate's got a realtor and

so basically, his realtor, my realtor, they're going to get together and they're

going to be having conversations back and forth. Now that's what the negotiating

world looks like and here's how it typically goes down.. Steven, I want that

property and I want to get it for a hundred grand so I want to offer seventy.

Let's offer seventy. - So maybe it's list, let's say

it's listed for a hundred and twenty right, Kris will come in and he'll offer

seventy, I'll submit the offer for seventy, the client will come back and

say that's ridiculous, this thing is at least worth a hundred and fifteen so

we'll do it for a hundred and fifteen and then he says, well I don't want it

for a hundred and fifteen, I want it for eighty

so I'll just back and forth and back and forth. - Now every back and

forth is going to cost you 48 to 72 hours because every contract comes with a, you

have line 48 hours to respond or else this is no longer good on valid contract

and so what will happen is I'm going to mess around with low-balling and

then it's good two days later, the contracts going to come back to me and then

it's going to come back here and we're engaging in this pathetic game, meanwhile,

someone else sneaks in like a thief in the night and what they do is they talk

to the realtor, they do all the negotiating verbally and they end up

snatching it out from under you, let's just say at whatever price it's going to go

for and meanwhile, you were playing the offer game back and forth, the deals done,

the deal's gone. You don't have time to mess around in real estate with

playing the traditional game when we're talking about a

high stakes, good deal. - Yeah, I have this happen actually just this week, I had

someone contact me and they said, "Steven, I want to buy this home.

Here's my offer would be when you talk to the sellers." Before they brought up

the contract or anything, I went to the sellers and I said, "Absolutely, here's

what we're doing. Would you take that?" They said yes but I need this that the

other, she said but I need this so before we even went to contract, kind of what

you're saying right now, we added already under contract pretty much and we had

all verbally worked out so that it was seamless, it was easy and you got out of

the games. Guys, let me just tell you real quick, negotiation, although, I know a lot

of you probably think it's about the game and there may be even be some of

you that love the game, right? I want to see how well I can work this

person down and get the very lowest price that I possibly can, the reality is

you can avoid so much time wasted and so much effort wasted by just getting into

the negotiation process with your highest and best. Talk about the

highest and best for just a moment. - These are the two tips that we want to roll

out for you. The first one is highest and best which is, if you're going to play like

a real real estate investor then you just start out with the price, instead of

playing the high-low game, just jump in and communicate, this is my price and

this is my best price, highest and best essentially says, hey I'm a professional

I know what I'm doing, I'm not here to mess around, I don't want to play that

and by the way, when Steven submits that, we're looking for a 24-hour turnaround

time so that first thing this basically says, hey we're going to give you a real

number here, this is that we've done our numbers, we know where we need to be at

and here's the beauty of playing this game, if they come back and say no dice

or we can't even be anywhere near that then you don't want to get stuck in the

game anyway, you got to go and hunt down the next deal that you actually

want to do so just get real with people instead of playing the game. Tip number

two that's really important is, do everything verbal first. - Yeah, this

verbal is so important. We don't want to get caught in the minutiae of going back

and forth like we said before, we kind of already mentioned this just a little bit

but that verbal communication is super important as much as you can get

caught up in the contracts and the writing and making it official, before

you do that, just have a real conversation. If you're an

investor and you're working without a realtor then just talk to them, say, "Hey,

here's what I'm looking to put in, this is my highest and best. Is this something

even in the realm of consideration for you?" if they say yes, it's in the

realm of consideration then you may have something to work with there then get

after it and talk about it and say, "Well, what will that look like? I could go up

to here but I would need this much in closing costs or I could go down here

with a little bit less." or you can do all that verbally before you get into it and

actually submit the offer so that when you do, it's solid and it's going to be

accepting like Kris said, 24-hour turnaround time you're done. - So a really

good realtor actually knows how to get behind closed doors and have a real

conversation that says, alright, let's be honest, let me tell you what my buyer

really wants for this, where's your seller really at, what are you guys

really able to do, let's just find out whether we can make something happen.

All of those pre-negotiations that happen verbally leads to submitting a

piece of paper that goes back and gets an approval right out of the gate and we

just skip the entire game, meanwhile, while everyone else is messing around

trying to play this lowball offer game, we're just getting business done. - I want

to talk about this real quick. I went to go buy a car recently

and when I sat down with the car salesman, yeah, I was always waiting, I was

waiting for the typical scenario and sometimes, you know, negotiation can be

fun maybe, maybe you get a little high out of that and I was waiting for it,

I was like, okay, this is, because you hear about used car sales guys, right

and the whole industry, not just used cars but any car salesmen kind of

you've heard about the industry and kind of gets a bad rep sometimes. I go in

there and I sit down and he tells me his price, "I said you know what, I really love

it for this price." And I was a little bawling a little bit, I was kind

of playing that game and I said, "You know, I'd really love it for this price." He

said, "Well, we won't go to that price, this is our lowest price. You can check the

internet, you can check everywhere around, this is the best price that you're going to

find for this vehicle." And he said, "And we don't negotiate." Like he said that to me,

said, we just don't negotiate and I said, okay and I was trying to play hard to

get, right. So I said okay and I turned around and said maybe I'll come

back we'll see, you know and I left and when I when I left, I went home, did my

due diligence on this vehicle and he was right. It was the best price for

the vehicle that I could find anywhere. I mean anywhere of anything even close are

similar and so I came back and I said, you know what,

I changed my attitude, my idea about it, it was awesome to have someone come up with

full integrity and say, no we've done all the research, we've done all the due

diligence, we are professionals, this is our lowest and best that we can go and

if that works for you great, if it doesn't, that's okay. I'll tell you,

I ended up buying the car from them. - So I want to tell you, I want to give you one

last final bonus for this video which is, make sure you don't lose a fantastic

deal over a couple thousand dollars. You need to get really clear on what your

real price is, it's not about how good of a deal you can get, it's about knowing

what the deal is that you need and it's about getting to that point and whether

you can or can't. I got to tell you that I've lost many deals over $500 and over

$1000 because I got lost in the game, I've also been really attached and you

said something really important there, Steven, you reevaluated

your attitude and you went in and you changed it. For me, when I go in on a deal,

I know what I want, I know what my lowest is and once I start that negotiation, my

goal is to get it done as quick and as fast as possible inside those parameters

and if I've done that then I've come out a winner. So know your numbers, know where

you need to be at, go in for the negotiation and remember today's two

tips. The first one is present your best offer and make sure you communicate that

you're not here to mess around, that that is your best offer and then the second

one is, get as much negotiating as you can done verbally before you actually

start submitting paperwork. And that my friends, is how the cookie crumbles and

that, my friends, is how you negotiate real estate. Would you like to get your

hands on piles and piles and piles of really good already pre-negotiated real

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