The Art of Negotiating with Sellers in Self-Storage!

You should always ask a seller, “Why are you selling your property?” Their answer is going to be fundamental in your negotiating. They may not be willing to tell you, which can often be an answer in itself, but sometimes they will explain that they are going through a hardship that is forcing them to sell. Often, they are retiring. Sometimes they haven’t been able to manage the property and so it hasn’t been profitable. If you can find out why they are selling, it can help you with your negotiation strategy when you are making an offer.

When you are having difficulty getting a seller to tell you their motivation, you can rephrase the question. “I have reviewed the package and I am considering the property, but can you tell the rest of the story? Why are you selling? Why do I want this property?”

Another thing that you should find out is if they have had other offers. If they have had other offers, why didn’t they work out? Was it a low offer? If they rejected other offers, what did they find objectionable so you can avoid putting that in your offer? At least you will have a good idea for a starting point.

The prior deal may have fallen apart because there was a problem with the buyer’s financing. Does this have to be a cash deal because of the property? If this has to be a cash deal, then a lot of the competition may not be able to put in an offer. This might give you an advantage.

When a seller isn’t very motivated you are going to present your offer differently than if they were. When they are motivated, you can show them how your offer meets their needs. For example, you might be able to show them that you have a quick closing, so they don’t have to worry about the property much longer. When they are not motivated, speed isn’t a motivator and so you have to find out why they are selling so you can appeal to those desires instead. Are they retiring; do they want more time?

Have fun talking with the seller and building rapport, everything that you learn can help you when you are making an offer on the property. Create a script that you are comfortable with so that you don’t forget any questions while you are on the phone with the seller. As always, happy investing.