Garage Decadence: Cheng’s Bulletproof Negotiation (CBN) Unveiled!
Alright, it’s “Garage Decadence” Monday again, and it’s time for a “Cheng article”. 🙂
One of the first things that my mentor (in real estate) taught me (when I started out as a negotiator – ERA in Singapore) is that every home owner selling his home knows that somewhere between selling and sold is a negotiation. No home buyer would ever pass up a chance to get the house at a lower price than originally posted and it is the goal of the home seller to keep it as close to his original selling price as possible. So much truth in that statement!
If you’re on the bargaining, buying end of the deal, your goal is to trim down as much off that price as possible. And it’s no easy feat! Even the greatest negotiators in any industry in business know that it takes more than just sweet lips to push through with a good bargain. “You have to be part persuasive, part persistent, and a little bit of everything else in between,” my mentor told me. 🙂
Cheng’s Bulletproof Negotiation (CBN) – Your Deadliest Weapon!
Just last Wednesday my long time client Steven Lee from Ampang told me, “So I was buying this unit at Hampshire Park in KLCC for about RM780 per square feet and I wanted to get a good deal. I used your Bulletproof Negotiation techniques and won the deal at RM750 per square feet! Thanks Cheng!” Music to my ears, Steve, music to my ears indeed. 🙂
This is supposed to be the topic of my book (Cheng’s Bulletproof Negotiation For Real Estate), but here’s four techniques you can use immediately to get a good deal –
TECHNIQUE #1: Arm yourself with comparables. You’d have a great advantage over your home seller if you know what to compare the house with. Know which similar houses in the neighborhood and close by have been sold at a much lower price than the house is put up for. This is one way of persuading (backing them up against the wall, really) the home owner that there’s not a reason why his house should be more expensive than the others you’ve compared it with.
TECHNIQUE #2: Don’t hesitate to ask and show him reasons why his house should be lower, but don’t give a below-the-belt kind of remark. Persuade him, yes; insult him, no. As I’ve mentioned earlier, home sellers are well aware that there will be some negotiation involved. But always know that you have to keep it at a professional tone, otherwise he’ll take offense and won’t consider you as a serious buyer (and will only rightfully reject your offer). Just ask, nicely, professionally.
TECHNIQUE #3: Don’t sound desperate. Instead of begging and pleading to the home seller, try a less attached and more nonchalant tone. Don’t make your offers and negotiations sound like rejecting your offer would be your loss; make it sound like it’s his loss. This is where the comparables would be extra, extra helpful. It would make you a convincing, serious buyer who knows what he’s looking for and has tons of options. He wants to be your final choice after all. Play a little reverse psychology too, if you may.
TECHNIQUE #4: Be ready with the money and convince him that you are. Be that sure buyer who is right about ready to sign that cheque for the down payment as soon as the seller agrees to your offer. This is one sure sign of a serious buyer and no home seller would want to let that pass up.
Now finally: don’t hold on too long. Be ready to move out as soon as you realize the need to. Long negotiations forfeit their very purpose. Don’t hold on too long to something that’s not going to budge, lest you risk losing a chance on other homes that are well worth your time and money.
Questions? Just leave me a message here, or contact me. 🙂