So in any market we have two types of sellers professionals and private “emotional” “unprofessional” whatever you want to call them.
Those are the people who bought a property and are now wanting to sell it. I like buying from professional sellers (the guys who are investors, the builders, contractors, the rehabbers) people who have a built in margin into their price points. So if they’re selling for a $100,000 you can be sure their margin is maybe 30,000 or $20,000. So it’s easy to negotiate and squeeze them.
But why would you want to buy from a private seller?
Well obviously in the market where you are there might be no new construction. There might be not many rehabs going on or people investing. So you’re stuck. But I like buying from private sellers, Why? because they’re very emotional. And if you could learn to negotiate with private sellers you can get some very good deals because private sellers like selling property to people they like. And I think this is the golden rule in negotiation if you can have somebody like you you’re going to get a better price. And it was one of the things that I really enjoyed doing when I was buying lots and lots of secondhand property was sitting down with sellers and just talking to them. Or in fact letting them talk to me.
And one of the most important things was when I was looking at their houses I would never ever complain about anything I saw even if I saw some damage. I think I’ve got to repair that. I would just ignore that I’d make a mental note of that but I would always compliment the person on their house and that would basically mean that they would warm up to me a little bit more and that’s not a guarantee that people will. But usually that’s the case. And so I would have a situation where people would definitely sell to me at lower prices. So why would you want to buy from a private seller? Well if there’s nothing else in the market that’s available and you like talking to people and you could probably get a good deal. Thanks for watching. I’m Sunil.