Presenting Low Offers Without Offending a Seller

[Will Peters]

Hey BiggerPockets, 

I recently received a call from a recipient of my direct mail campaign about an off market property and have put myself in position to make an offer. I asked him the lowest price he is willing to take; however I plan to offer a bit lower than that. I have read a good amount of blogs on the subject and I am somewhat ready to offer that lower price. I plan to stay true to my numbers and hold fairly firm on my offer. 

Does anyone have any good advice about offering with confidence and the presentation of a lower offer? 

[Zachary Wilson]

Great question! I would like to attempt at giving a good answer!

I personally think it’s funny when other investors just immediately say “throw out a lowball offer” and who cares if the seller gets upset? Well you (the buyer) should. Our goal as investors is to get the best possible deal for ourselves while also solving a sellers problem. If you don’t care if the offer offends then then why would they go with you? My approach is to get them on my side. To offend them but in a way that gets them on my side. When I am submitting a lowball offer I almost submit it in a way that Let’s them know I am super vulnerable and making the offer makes me feel uncomfortable. Like I am embarrassed.

MR seller I know you have to be at X but according to my numbers I need to be at Y. Judging by our conversation you needed to be at X because of this bill, that bill, yada yada yada. But I need to be able to make a profit on this house. And based off of what I can sell it for, the work it needs and what your asking there is simply no way to make it work. I’m so embarrassed but my offer is Y.

If you give an offer with empathy they immediately are “on my side” . They start to justify the sale and price for me. “Well you need to make money” and “ I know your not low balling on purpose”.

My point is that you should care if you offend them. Work on your negotiation skills because this business is ALL about how well you negotiate.

It’s not the deal they ultimately got ITS THE DEAL THEY THINK THEY GOT.