When learning how to negotiate, there’s a very important lesson. You need to know how to talk to people. Every day when you get up and run your business, everything is a negotiation. Even though this is a lost art, you must learn how to build a rapport and bond with a seller.
After asking the initial questions, I start talking about my background and try to find common ground with the seller. Many sellers are going to be older people who grew up in a different time than now. So I reassure them that my word is good and I will do what I say I’m going to do. A handshake is still very important in whether trust is going to be developed or not.
Finding something you can share in common right away will put the seller at ease. Today, numerous buyers are just after a deal and have gotten a reputation for taking advantage of people. This type of business has made sellers hesitant of those who are trying to buy their property.
Also, taking prepared paperwork and materials to show a seller is very helpful. I have a folder that displays past debts/notes I have paid for. But if you don’t have those, get letters of recommendation that shows the type of person you are. In addition, I share photos of my wife, children and grandchildren to show that I am a family man.
Doing a face to face negotiation is different than over the phone or using a real estate agent. Take time with the individual. Let them talk and share about their life. Don’t be in a hurry or they will feel you’re just after their money. Let them really know who you are!
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