Getting an Asking Price from a Seller Who Doesn’t Want to Give It

Mike: Welcome back to the flipnerd.com REI Classroom where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
John: Hi, my name is John Martinez with Midwest Revenue Group and this is REI Classroom. A question I often get that I want to answer for you today is, how do I get an asking price from a seller who is kind of reluctant to give me their asking price?
Mike: This REI Classroom real estate lesson is sponsored by theinvestormachine.com, FlipNerd’s private investor coaching program and your blueprint to investing success.
John: This happens all the time. If we’re handling inbound leads whether it’s a PPC lead, an SEO lead, a mailer lead, it doesn’t matter. When you handle these leads, usually one of the pieces of information you want to collect is how much do you want for your property. Some people give up this information easily and they don’t care to tell you. Others, they don’t really want to tell you what their asking price is.
There are a lot of reasons behind this, none of which matter. There are valid reasons why. If they share their price, maybe you won’t get your best offer. Maybe they are undercutting themselves. Maybe they feel they’ll be taken advantage of in some way so they hold their cards close to their chest.
How do you get this information when you’re dealing with these types of sellers or prospects that don’t want to give it up? Here’s a trick. These people won’t give you their information, but they’ll be more than happy to give you the information of anyone around them. Here’s what I mean by that. When you ask them, “What’s your asking price,” they may not tell you. But, when you ask them something like, “You know what? I haven’t had a chance to do my research yet. What are homes going for in that area? Homes like yours,” you’re much more likely to get an answer there. You basically have asked what do you value your home at.
I haven’t done my research yet. Homes in your area, homes kind of like yours, what do you think the values are? Oh, well, they go for 50,000; 100,000; 400,000; whatever it is for that area. Then, you can simply follow that question up with something like, “Really? Well would you expect to get more or less for yours?” Now we’re diving in on exactly what they value their home for.
You could take it another step further and ask a very safe, simple question like, “Why is that?” Well, my house is bigger. It’s the most well maintained. We just refurbished it. It’s got the biggest yard on the block, whatever you like. If you want, you can even take this one step further by asking a question like, “Is that your offer? Is that negotiable? Is that the best you can do?” That will zero in exactly on what your prospect values their property at and what they’re willing to take without having to ask, what will you take for your property and getting all that pushback and really forcing the conversation to take a dive down and losing that rapport. You don’t want to risk that.
To recap again, sellers who don’t want to tell you what their asking price is, how do you do it? Don’t ask them about their property. Ask them about a neighbor’s. “Houses like yours in that area, what are they typically going for? Really? Is that what you’d expect from yours? More or less? Why is that? Is that your asking price, and is that negotiable?” If you want to get really down and dirty, ask them, “Well, is that the best you can do?”
There you have it. My name’s John Martinez and this is REI Classroom. I’ll see you next time.
Mike: Are you looking to change your life through real estate investing? If you’re interested in either getting started or taking your business to the next level, please check out FlipNerd’s private program at theinvestormachine.com. This is the most robust real estate investor coaching, networking, and mastermind on the planet and designed for your success.
If you’re ready to roll up your sleeves, ready to take personal responsibility for your own success and ready to dive into a world class instructional coaching program that provides you step-by-step instruction to help you achieve financial freedom then you should apply today. Spaces are limited and candidates are only considered after an application and interview process. Our 12-month investor program is unparalleled. Think you might be a fit? Learn more today at theinvestormachine.com.
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of flipnerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
Are you a member yet of flipnerd.com, the hottest real estate investing social community online? If not, you can join for free in less than 30 seconds and get access to hundreds of off-market deals, vendors in your market to help you and your business, and you can start networking with thousands of other investors just like you. Get your free account now at flipnerd.com.
Please check out the FlipNerd family of real estate investing shows where you can access hundreds of expert interviews, quick tips, and lessons from leaders across the real estate investing industry. They’re available at flipnerd.com/shows or simply search for FlipNerd in the iTunes store.