Hello, fellow real estate enthusiasts! This is Chad McMahan from the Equity Team, and I’m thrilled to have you back for another episode where I’ll be unraveling one of our secret sauce methods for securing fantastic deals for our clients. So grab a seat, relax, and let’s dive into the world of patient negotiation.
In today’s market, where uncertainty looms and both sellers and buyers tread cautiously, our approach stands out. It’s not just about the properties; it’s about timing, strategy, and a touch of finesse in negotiation. Join me as I unveil a powerful tool that has been working wonders for us.
The Sweet Spot: 90 to 150 Days on the Market
The magic happens when we set our sights on properties that have been on the market for an extended period. The sweet spot, as I like to call it, usually falls between 90 and 150 days. This is the timeframe when sellers start to feel the itch, a sense of urgency that often leads to increased motivation.
Scrolling through the listings, we identify those that not only fit the timeline but also come with a history of price reductions. This sweet spot allows us to strike when the iron is hot, seizing opportunities before sellers potentially decide to pull their properties off the market.
Analyzing Price Reductions: A Crucial Indicator
To illustrate, let’s take a look at a couple of listings. There’s one on Arabian, 804 days on the market, originally listed at 2.45 million, now at 2.3 million after a price reduction. This is the kind of opportunity we look for. However, not every property in the sweet spot is a golden ticket. Analyzing price reductions is key.
For instance, a property on Cougar has reduced its price by $50,000 but may not present a significant opportunity. It’s essential to differentiate between listings that have substantial room for negotiation and those where the strategy might not yield the desired results.
The Art of Patient Negotiation
Identifying a property with potential is only the first step. The real magic happens in the negotiation phase. Suppose you find a property you love, and it has been on the market for the ideal duration with a reasonable price reduction history. Now it’s time to make an offer.
Let’s say the property was originally listed at 1.2 million, now at 1 million after three months on the market. You decide to offer 900,000. The negotiation dance begins. The seller may counter at 960, but you stick to your offer. This is where patience becomes your ally.
Our success rate, employing this patient negotiation strategy, is around 30-40%. It’s not about low-balling; it’s about presenting a fair offer, letting it marinate, and allowing the agents to keep the conversation alive. It’s a delicate dance that takes time, sometimes weeks, but it often leads to a win-win scenario.
This isn’t a guide on how to low-ball offers and win by sheer force. Instead, it’s a reminder that in real estate, patience and understanding the market dynamics can be powerful tools. If you’re intrigued and want to explore opportunities with this strategy, don’t hesitate to reach out. Let’s discuss properties, market trends, and see if this approach aligns with your goals.
Thank you for joining me in this exploration of patient negotiation in real estate. Stay informed, stay patient, and, most importantly, stay safe. Until next time!
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