Price Isn’t Everything
In the real estate business, everyone goes for the best price for the deal. It is with this thought that people would first consider every option that is being offered to them before settling on the winner. It is with this thought that real estate investors try to outwit one another so that they’ll be able to get the deal.
The general picture of this heavy competitive market is that investors try to outrun one another using price as the main factor. If one offers a price, the competing investor tries to offer a better one.
But it doesn’t always have to be about the price. There are people who would go for deals that have more benefits than just a good price. And, believe it or not, using this approach may be your ticket to the top!
You’ll notice that in general people do what their colleagues would do and think that working harder than the others would make you successful. That isn’t always the case. That is especially not the case when you’re in a competitive market wherein majority of you are seriously fighting to succeed over the rest.
In a market that’s full or hardworking businesspeople, it’s not enough to just work hard. You also have to work smart!
There are a few in the real estate business that have discovered a way to compete with each other without worrying about what most would worry about — the price to offer. Most investors worry about how much to offer to get a deal. Clearly, this isn’t smart way to get deals.
There may have been instances wherein an offer that is much higher than yours was chosen? Have you thought of why that happened, when your price was better?
It’s because price isn’t everything when you’re making a deal.
One thing you have to consider when trying to get a deal is what the seller wants and needs. Practicality would inspire you to think that they need the money. They do, yes. But that isn’t the only thing that they would want when you consider their emotional and psychological needs.
A person about to move out of his property would still be trying to adapt to the idea that he’ll lose his property and move into a new one. This uneasiness and the transition period to changes can be used as your weapons in getting a deal from them.
Instead of focusing on price, you focus on the seller’s needs. This is because most often than not, it’s these needs that will be prioritized more than the money.
So how do you use these needs to your advantage? Cater to it. Offer selective services that will be greatly appreciated by the sellers that they won’t care if your price for the property isn’t very attractive for them.
Here are some ideas and services that you can use for this strategy:
- Offer them a place to stay in for some time to help get used to the prospect of moving to a new place
- Offer to do the packing and moving of their stuff to their new place
- Hold back a portion of their profit which you will only give them when they have moved out of their sold property
These are just some of the services that you can offer to help the sellers accept your offer and do business with you.
In the business world, we call this a unique selling proposition. This is a well-known tactic used by many businesspeople to stand out from a very competitive market. Real estate business is no exception in having a very heavy competitive atmosphere and one way to stand out and get to the top is to offer something different and unique. Talk about working smart!
