How To Negotiate Real Estate Price

How To Negotiate Real Estate Price


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 estate? Click the link up here and look
into our done-for-you system where you can plug right in and my team will give
you up all the deals and build your portfolio for you.

31 thoughts on “How To Negotiate Real Estate Price

  1. First

  2. Second

  3. hey kris what's your best deal in terms of negotiation?

  4. What should Someone do if they had 300K. Buy one house witout debt ore buy multiple houses with debt?

  5. Awesome info thank you! 💚

  6. Hey kris it’s me again. I got out of high school last year and am working in the electrical trade. I’m interested in also learning HVAC. I think it’s a good idea since I will have less expenses when upgrading a home. What are your thoughts on this?

  7. Hey chris, if we join your team, would we be able to get advice and help from you and Steven personally?

  8. hey kris, what do you think about investing in Detroit?

  9. Hello Kris! After intense research I've found a deal that I love for 50.000 euros. It's a 2bd apartment close to the subway, school and public transportation. I am 19 years, from Romania and I have put aside enough money to pay the 15% *8,000 euros that the bank asks. Should I get the deal and get a loan from the bank where in 10 years I must cover 55,000 euros. Please keep in mind that I can rent that apartment for about 300e/month and for now I earn about 700e/month . Hope I was clear and I am looking forward for your answer! Thank you!

  10. hey kris, I'm 14 years old and want to get into the real estate world but I don't know when to start

  11. You guys give great leassons. I am so inspired and motivated. I've learned at a lot from you two. Now it's time to GET OUT AND DO IT!

  12. Appreciate the video, but we investors and buyers are waiting anxiously for when we can bid on a house at will, on any and all properties on the mls monopoly, without a paperwork-offer-retail minded agent in the way….via this new baby on the block called the internet. Just like the growing online bid auctions, we will log on to our ameritrade-like real estate site and bid on any mls property. There is no such thing as a buyers agent anyway, , just an in the way human being paper-submitter-5% off pitcher; a secondary gate keeper to the primary listing agent to the seller. The app is coming to knock out that in the way "agent for the buyer", brought to you by amazon. * This will be a victory for the buyer…in the mean time, the agents monopolize and tilt the scales to the seller, and over priced retail **..

  13. Why don't you guys go stare deeply into each others eyes some more. Cheese balls.

  14. This is highly biased, because this is not the case in all markets. For example Vancouver market, this doesn't apply.

  15. A great video you should do that I haven’t seen was explaining how to get “Paper Work” when selling a property such as contracts how to get a good contract what should the contract ,House selling paper work,Lease Paper work and how to make it official when Closing a deal 😇

  16. You can feel the greenscreen

  17. I think I have ''Krohn's disease,'' I can't stop watching these videos.

  18. waste of time video

  19. If I was selling my house 120 k and you offered me 70. I wouldn't waste my time my response would be go f yourself and don't contact me again. Only a poor desperate individual that's getting ready to go to prison and needed the money would consider something like that. Most likely would destroy is meth lab in the back

  20. Can you make a video of closing costs , please explain

  21. Realtors don't allow you to talk to the seller.

  22. Such great engagement with others! Loved the entire content you had in your video.

  23. Amazing videos!
    😀👍

  24. so you should make an offer on ever home

  25. Why do they seem like Mormon missionaries? 🤔

  26. What if i buy a property of suppose 300k and estimate that there is an equity of 50k but when i go to sell it the max offer i am able to get is 250k

  27. This strategy doesn't applies to India.

  28. I sell cars and know the ins and outs but I want to buy a house in 3 years and I know nothing on how to not get pounded. There's TONS of "how to not get ripped off when buying a car" but few on homes…

  29. Realtor can't talk to seller

  30. Gems. Thanks so much!

  31. what??

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