One of the initial and most important stages in getting a deal that works for you is negotiating and getting the right price which makes financial sense for yourself and provides a solution for the vendor.
In any negotiation environment, it’s essential to develop effective ‘win-win’ solutions that are acceptable to both parties – leaving a sense that everyone has and will benefit after the event.
In property investment, this would mean that you would be getting a long-term investment (which you will now be entirely responsible for) and your client has received a fast solution to their problem (such as removing the burden of their mortgage commitments; the ability to be able to move on with their lives; release funds; clear debts etc).
There are many ‘closing’ techniques which can be used to persuade a client to make the necessary commitment – these can often be mixed and matched according to the type of person you are and what you are comfortable with…
1-2-3
This is a technique that is commonly used in sales where your proposal is summarised as three items to give a compelling message.
Adjournment Close
This is essentially playing the long-game. You should remember that, for most people, their home is the biggest asset they will probably ever own in their lives and many people need time to think about an investors offer. This may call for some tact and appreciation from your part.
Affordable Close
In property investment terms, this is essentially taking a detailed look at the vendors financial position; making a value judgment as to whether they are in a position to actually be able to sell and subsequently
analysing if there is a win-win deal to be done.
Advisor Close
Make sure you understand the procedures and systems (both locally and nationally) behind housing to be deemed as someone who knows exactly what they’re talking about – namely: finance / repossession; property/building structures and the local market.
Alternative Close
You essentially offer a vendor number of clearly defined options to choose from – this has the benefit that you are not approaching every deal with a ‘one size fits all’ strategy and demonstrates that you have paid close attention.
Balance Sheet Close
Here you briefly illustrate the cons of doing a deal with you first and then state the pros. You need to maintain your credibility at all times and ensure that you are giving them fair consideration.
Best Time Close
You may find that some vendors may procrastinate in terms of accepting your offer – leave a set ‘deadline’ in order to establish whether the person is just enquiring or has a genuine interest in what you’re offering.
Bonus Close
This is where you would offer something unexpected which would help the vendor in some way or another.
Economic Close
This is closely related to the balance sheet close mentioned above, but essentially explains to the vendor what their costs and expenses would be if they were not to enter into a deal with yourself. Try not to be too negative (and therefore ‘sour tasting’).
Empathy Close
This is essentially understanding your client and not putting the deal as your priority.
Handover Close
There are some investors that are simply not comfortable working with vendors and simply want to buy property without any real involvement. If you or your team are in this position, perhaps you have someone who you know has excellent interpersonal and rapport building skills that can work with you to close the deals?
Humour Close
This is not an open invitation to practice your stand up routine (ie. don’t try and be too funny) but merely a way to help vendors feel more comfortable and relaxed in your presence.
No-Hassle Close
This is essentially making the whole process as easy as possible and is very much a reflection of your own attitude and how you manage your business.
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