I’m a Real Estate Agent and reverse engineered the simple supply & demand model to do this. Here’s what I do… I setup my buyer clients to have a surplus of home choices (I call them backup positions / homes) so effectively they are always in a buyer’s market. Then when we enter the negotiation. I do exactly what you speak of, to understand the seller’s position & speak directly to it… But also say to the seller,
“Hey look Mr seller. My client loves your home, but he has 2 other’s he’s interested in. He’s going to offer you this price which I understand is less than you’re asking, however, he has 2 other homes he’s offering on and they are willing to sell for the price he’s offering you.”
I will show information on the two other homes along with a nice cover letter I draft and my client signs reiterating the seller’s thinking / mindset. Goal of cover letter is to get seller to connect emotionally with my buyer and is something to the effect,
“I love your home, understand you took great pride in it, and want to offer you as much as I can however, other two homes are less expensive and in my right mind I cannot pay the extra even as much as I like your place. Here’s a picture of my kids, I like the back yard gril… love grilling, surely going to love your place… bla bla bla” Insert picture of family holding baby… anything to add emotional spice to the negotiation. You get the picture 😉
Like I said this in addition to what you said is PURE gold. I’ve shaved up wards of 25% off the price of the home for clients before! Now I’m in a sellers market and still experiencing 10-15% off appraised / market value of the home in multiple offer situations (up against other buyers) using these techniques.
I also developed a flip side to too this to help my seller clients keep people from bartering down the price, even in a buyer’s market. Used that to help a sellers fetch as much 18% over appraised before.
My website link also show’s a more in depth explanation of a specific example where I executed this concept for the first time and saved $40,252.
]]>I’m not idiot now for sure. I’m also on your list as well.
Thanks
Sapna
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