Making below-market offers is a kind of reverse sales process, and an intriguing part of the wholesaling and flipping areas of real estate investing. You want to convince the homeowner/seller to let you give them money, rather than persuade them to give you theirs. But – and this is a very big “but” – you are offering less than they probably think they should have. Why should they agree?

Will they accept your offer because, objectively, this is the smartest decision they can make? Interestingly, people rarely make big decisions based on objective criteria. Most decisions are emotional, even major events such as selling a home. When it involves a transaction, most decisions involve trust and rapport. They may not like your offer, but if they understand why you made it, they may still like you. Building this rapport is a big step toward acceptance of what you are asking them to do.

How do you encourage a (probably) unhappy homeowner to trust you and listen to your below-market offer? I’ve made thousands of offers. Not all were accepted – I don’t know the exact ratio, but I’ve undoubtedly been turned down more often than I’ve closed the deal. But as you gain confidence and experience, you’ll find that you are successful far more often at securing a contract at the price you want.

Empathy

At all times, remain aware and respectful of the situation of this particular homeowner. Don’t lump all homeowners together in your mind as ‘another below-market property’. People pick up on a lack of personal interest right away. Keep in mind a few facts about this particular situation that you can mention as you work with them, so the homeowner knows you are attentive to them. 

Warm Professionalism

As sympathetic to their misfortunes as you may be, don’t get lost in their emotions. People want someone who is obviously knowledgeable, objective and realistic to help figure out their options.

Rapport and Honesty

You can tap two objectives with one technique – building the homeowner’s rapport and trust through honesty, and forestalling future problems from a homeowner/seller who is unaware that you intend to assign this contract to another real estate investor who will close. Let them know that you are a professional who does this to earn a living and take care of your family. Always be upfront about the fact that you are looking to make a profit on the property. Its important to always keep things simple with the homeowner so as not to confuse them. As far as they are concerned you will be the one that is closing for cash…even if it is your investor buyer that is coming through with the funds at closing when you wholesale it.

Homeowner/sellers may need a few hours or even days to process this information. But people are more ready than you may imagine to do business with someone who has been forthright about their intentions. 

Building rapport with empathy, professionalism and honesty is the best path to signing a contract for your target price and a clean and uncomplicated closing.

How will you approach a homeowner/seller when you are making a below-market offer?

Want to earn money with little or no investment of your own? Keep an eye out for my upcoming ebook explaining wholesaling and how to make it work for you!