Something I am asked frequently is how you can get a seller to reduce their price. There is a strategy for this called price anchoring.
A lot of times investors and wholesalers will anchor too high. They will go to the seller and they’ll say how much would you like for your property and then the seller would say well I’d like $200,000.
At that point in time, the sellers put out a number and it’s very hard for you as the buyer to negotiate down from that number. If you go back to them and throw out a really low number they’ve still got that higher number in mind.
So what you should try and do is drop a low price anchor from the get-go. Say well if you want a guaranteed cash offer it’s going to be $130,000.
Now that seller may have initially been thinking about $200,000, but because you put a low anchor of $130,000 out, they may come back and say well I need to get closer to $160,000 or $170,000.
If you’re dropping a low price anchor it’s going to upset sellers sometimes. However, you can rephrase the conversation letting them know that “Hey you’re not going to be getting full price”. This strategy works really well with damaged properties.
Learn more about this strategy and other strategies for buying damaged properties from motivated sellers at my next Wholesaling Real Estate Boot Camp. Call our office today to get registered 561-948-2127 or click the button below to learn more about the boot camp: