I read a great article a while back in Inc. Magazine. The title of the article was “The Art of Conversation”. This article was written by George Stephanopoulos who certainly knows a lot about this subject.
After reading this article, I began to think about just how much this applies to real estate investing. When you are having a one-on-one conversation, it really doesn’t matter if you are speaking to a motivated seller or the president of the United States. The same rules apply.
The 5 Crucial Steps for a Good Conversation (According to George)
1. Prepare Extensively
When you have an appointment with a motivated seller come prepared to present yourself as a credible investor.
- Make sure you have completed your due diligence on the property.
- You will need to know the comps for the area.
- You should know the amount of the tax assessment for the property.
- Be sure to arrive a little bit early and drive around the neighborhood. Compare this house to the other homes in the area.
Do everything necessary to be prepared for your appointment.
2. Don’t Be a Know- It-All
Now that you have done all the necessary preparation, you are almost certain to feel like an expert on this property. That’s great but it will be very intimidating to the seller if and it won’t really do you any good if you do all the talking. Ask the seller questions so he will become involved in the conversation early on. You can ask about the history of the house and the neighborhood. Let them contribute any information that might be helpful to your negotiations. This is one time it really pays to listen.
3. Ask “Why”
Getting someone like a seller to answer “why questions” takes a little finesse at times, but it is well …read more