Don't React Emotionally to Seller Price Pushback | Here's Why

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Transcript

Why Sellers Ask For More

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If you make offers to sellers, eventually you're going to hear this. Why can't you give me a better price? And this is where most wholesalers lose control of the conversation, because they treat it like the seller just asked for a favor. So they start doing what amateurs do. They become emotional, they get defensive, they start justifying, or worse, they start negotiating against themselves. Well, maybe I could come up a little, or how much more were you thinking? Let me see what I can do. Well, that is weak, because now your offer sounds like it was never real to begin with. At that point, your number feels like magic, not math. And that is the exact opposite of how we teach acquisitions inside of the closer's formula. We believe our offers are math, not magic. We are not pulling numbers out of thin air. We are not making emotional guesses. We are not raising price just because a seller doesn't like what they heard. Our job is to build the offer around where in buyers actually buy. So when a seller says, Why can't you give me a better price? The right response is not to argue. The right response is to go back to the numbers. Because if we're going to come up on price, it has to make logical sense inside of the math. Not emotion, not pressure, not because the seller sounded disappointed. It has to make sense. And that is what I want to show you in this video. How to handle give me a better price by removing emotion, focusing on the numbers, and forcing the conversation back into logic. Because when you do that, one of two things happens. Either you uncover a real misunderstanding, or you expose that the seller simply wants more money with no mathematical basis for it. And both outcomes help you. So let's talk about what not to say. Bad response number one, that's just the best I can do. And that sounds defensive and creates a wall. Bad response number two, what number do you want? Well, that puts the seller in control and makes you feel like your number was fake. Bad response number three, okay, I can come up a little. And that is one of the worst things you can do because now you're teaching the seller that your original number meant nothing. And once they feel that, they will keep pushing. So instead of reacting emotionally, we need a framework. The core principle is to go back to the math. When a seller disagrees with our offer, we do not turn it into a debate, we turn it into a math conversation because our number came from somewhere. It came from the after-repair value, the rehab needed, the holding costs, the closing costs, and the profit margin and in buyer needs to make the deal make sense. That is what the offer is built on. So when a seller says they want more, the response is okay, let's figure out where we're not agreeing inside of the numbers. That one move changes the whole conversation. Now it is no longer emotional. Now it is no longer personal. Now it is no longer you versus me. Now it becomes which number do we see differently? And that is a much better conversation. So let's break this down in a four-step framework. Acknowledge, recenter, isolate, and resolve. So step one, acknowledge. First, don't get argumentative. Say, I understand everybody wants the best price possible. That keeps the tone calm, no tension, no ego, no argument. Step two, recenter. Then immediately bring the conversation back to the methodology. So you say, the number I gave you is based on the core numbers of the property, not just me throwing something out there. And that is important. You're reminding the seller this offer has a structure. This is not random. This is not emotional. This is not you trying to steal the house or their equity. This is math. Step three, isolate the disagreement. And this is the key move. You say, so let's figure out where we're not agreeing. Is it on the after-repair value? Is it on the repairs? Is it on the holding costs or closing costs? Or is it on the profit an end buyer needs to make? And that question is powerful because now the seller has to do one of two things. Either give you a real area of disagreement or reveal they are just unhappy with the outcome of the math. And those are two very different things. Step four, resolve logically. Now, once you isolate the disagreement, you address that specific number. They think the house is worth more after repairs, you talk through the cops. If they think the repairs are lower, we'll walk through the condition of the property. If they think your margin is too high, you explain what buyers in your market actually need to make to take on that risk. Now the conversation is productive. Now the conversation has structure. If the seller is right about something, great. You adjust the number because the math changed. But if the math didn't change, then the offer should not change. That is discipline. So what does this sound like on a call? Seller, why can't you give me a better price? You. I understand everybody wants the best price possible. The number I gave you is based on the actual core numbers of the deal, not me just throwing out a guess. So let's figure out where we're not agreeing. Is it on the after-repair value, the amount of rehab, the holding and closing costs, or the profit an inbuyer needs to make? That response does a few things at once. It stays calm, it doesn't fold, it doesn't argue, and it forces the conversation back to the facts, breaking down the four main areas. After repair value. Sometimes the seller thinks the property is worth way more than it really is once it's fixed up. And this is common. They are comparing their outdated house to fully renovated retail listings with maybe more square footage or a different year built. So if they disagree here, you say, okay, let's start there. What do you believe the property is worth once fully fixed up? Now you can compare their number to the actual reality. Because if the ARV is inflated, everything built on top of it is inflated too. Second, rehab. This is another big one. A seller will say it doesn't need that much work. Meanwhile, the house needs a roof, HVAC, flooring, kitchen, bathrooms, paint, foundation work, and half the garage is caving in. So when they challenge the price, ask, do you feel like we're too high on the rehab number? That helps you isolate whether the disagreement is really condition-based. Number three, holding costs and closing costs. Most sellers never think about this part. They think an investor buys a house and just magically keeps the difference. They're not thinking about utilities and taxes, insurance, the cost of hard money, closing costs, realtor fees when it's resold, transaction costs, and the cost of time. So sometimes you need to explain that there are real costs between purchase and resale, not as an excuse, but as education. And the last in buyer profit. This is where a lot of wholesalers get uncomfortable. But this matters. The in buyer has to make enough money for the deal to be worth the risk. Otherwise, they do not buy. And if they do not buy, then your deal is not a deal. So if a seller wants you to come up, but doing that kills the margin, then the math stops working. And that is not you being difficult, that is just reality. So why does this approach work better? What most people do is argue price. What we do is diagnose the disagreement, and that is a huge difference. Because when you diagnose the disagreement, you stay in control. You're not defending yourself, you're not pleading, you're not trying to be liked, you're simply saying, here's how the number was built. Show me where you see it differently. That's calm, logical, and professional. And the best part is this if the seller has a valid point, you can actually find it. Maybe the rehab estimate was too aggressive. Maybe there is a comp you had not considered. Maybe the property is cleaner than you thought. Great. Then the math changes. And if the math changes, the offer can change. That is a very different from changing the number just because someone pushed back. Now let's talk about the line that keeps you out of emotional negotiation. So here's the line. I'm happy to revisit the number if one of the core numbers changes. I just need to understand which number you believe is off. That is a closer's formula line. Because it keeps the entire conversation centered on logic, not pressure, not feelings, not seller theatrics. So let's go through the role play. Good version versus bad version. Starting off with the bat. Seller, why can't you give me a better price? You. Well, what were you hoping to get? Seller. Well, I was thinking maybe 20 grand more. You. Let me see if I can do that. That is terrible. In the words of Charles Barkley, terrible. Now your number has no credibility. So let's go through the good version. Seller, why can't you give me a better price? You. I understand everybody wants the best price possible. My number is based on the actual core numbers of the deal. So let's figure out where we're not agreeing. Is it the after repair value, the amount of rehab, the holding costs and closing costs, or the profit margin the end buyer needs to make? The seller. I think you're too low on what it's worth. You got it. So it sounds like the disagreement is on the after repair value. What do you think it's worth fully fixed up? Now you're actually having a real conversation. When the seller cannot identify the number, this is important. A lot of sellers will not be able to tell you where they disagree. They will just keep saying, I just need more. That usually means they are reacting emotionally and not logically. And when that happens, you can say, I understand. I'm just trying to make sure that we're talking about the same thing. If we can't identify which number is off, then there's really nothing for me to adjust on my side because the offer is built from the math. That is clean, that is firm, and it keeps you from negotiating against yourself. Now there's times when you should adjust the offer. You should only adjust the offer when the underlying math changes. That is it. Not because the seller is nice, not because the seller is upset, not because you want to save the lead, and not because you feel awkward. Only when the math changes. That's the rule. If the ARV is truly higher, fine. If the rehab is truly lower, fine. If the deal truly works better than you thought, then that's fine. But the offer moves because the numbers changed, not because the seller asked. So when should you walk away? Some sellers do not want a logical conversation. They just want a higher number. If they cannot identify where the math is wrong and the spread does not work, then there's nothing to talk about. That is when you say, I respect it based on the numbers as they stand today. I just don't see a way to get to that price and still have this make sense for where in buyers are buying. If anything changes, I'd be happy to revisit it. And that's a strong exit. Because you're not slamming the door, you're simply staying disciplined. And a lot of times, that is exactly what gets them to come back later. So the next time a seller says, Why can't you give me a better price? Do not get emotional, do not defend or argue, do not negotiate against yourself. Go back to the math and ask where you are not agreeing. Is it the ARV, rehab, holding costs, closing costs, profit? Because once you remove emotion and put the conversation back into numbers, you immediately gain control. And that is how you protect your margin. Stay credible and make offers the right way. Math, not magic. Let me know what you guys think in the comments. Regardless, show me some love, like today's video, and we'll see you guys tomorrow.