When A Buyer Want's You To Drop Your Assignment Fee!

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Transcript

Why Fee Talk Kills Control

SPEAKER_00 0:06

Have you ever had a buyer ask, what's your assignment fee? Or even worse, drop your assignment fee and we'll close. Sometimes they ask it directly. Sometimes they dress it up like they're just trying to understand the deal. Sometimes they act like they're the assignment fee police. Either way, the conversation is dangerous if you don't know how to handle it. Because the second you let the buyer make the deal about your profit instead of their numbers, well, you've already lost control of the negotiation. Here's the truth. You cannot build a real business if every buyer gets to negotiate your paycheck. Your job is to stay professional, keep the conversation on the deal, and only concede when there is a real trade that improves certainty. Higher ED, hard money sooner, faster close, cleaner terms. But if you just drop your fee because a buyer asked, you're not negotiating. You're training them to squeeze you forever. So let's start off with what not to say. Bad response number one. That's none of your business. However, it might be true, but it sounds emotional. It escalates the conversation and makes you look defensive. Bad response number two. Fine, how much do you want me to drop it? That tells the buyer you were already prepared to cave. Bad response number three, I'm making a huge spread, but I deserve it. Never start justifying your assignment fee. The second you start explaining why you deserve to make money, you've moved from business owner to defendant. And now the buyer is the judge. When a buyer asks, what's your assignment fee? It can mean a few different things. Sometimes they're just curious. Sometimes they're worried the deal is being marked up too much. Sometimes they want transparency. Sometimes they're trying to figure out how much room you have to move. And sometimes they're setting you up for the next question. Can you drop your fee? When they say drop your assignment fee, it usually means one of four things. They want a better price and they think you're the easiest target. They're trying to set a precedent so they can squeeze you on future deals. Their margins are thin and they don't know how to make the deal work. Or they're not a serious buyer and they negotiate for sport. So before you react, diagnose what's actually happening. Is this a real buyer with real math? Or is this someone trying to make their profit from your discount? So the core principle: buyers do not negotiate your assignment fee, they negotiate the purchase price. That distinction matters. Because the buyer's real question should not be, how much are you, Mr. Wholesaler, making? The real question should be, does the deal work for me at this price? That is where you have to bring the conversation back every single

The Four-Step Negotiation Framework

SPEAKER_00 3:08

time. So let's give you a four-step framework because Bobby Frost is anxiously awaiting for me to name drop him again. We start by validate, reframe, require a number and trade for commitment. So step one, validate without conceding. If they ask, what's your assignment fee? You can say, I understand wanting to know the full picture. If they say, drop your assignment fee, you can say, I understand you want the best number possible. No attitude, no defensiveness, no weird energy. You're not offended, you're not rattled, you're just staying professional. Step two, reframe the conversation away from your assignment fee. This is the pivot. So you say, let's keep it simple. The only thing that matters is whether the deal works at this price. Or I don't price deals based on my assignment fee. I price deals based on what the market will buy. Essentially, where in buyers buy. That one line changes the entire conversation because now you're not debating your paycheck, you're talking about the deal, and that's where the conversation belongs. Step three, require a real number and a real reason. So you ask, what price do you need to be at? And is that because of the after repair value, the rehab, or your target margin? That question separates real buyers from the fake negotiators. A real buyer has math. They'll say, I need to be $10,000 lower because repairs are heavier than expected. Or my after repair value is lower than yours. Or my lending costs change and I need to be at this number to make the deal work. That's a real conversation. But if they say, I just want a better deal, that's not math. That's phishing. And you do not negotiate against feelings. Step four, trade concessions for stronger commitment. If you decide to move, you don't just give money away. You trade. If I adjust the price, I need stronger terms. Higher earnest money deposit. Hard money needs to close sooner. A faster close, no inspection extension, no additional access requests, no retrade language. So you say, if I can close, if I can get closer to that price, I'll need stronger terms. Earnest money deposit today. It goes hard immediately and affirm close date. If we do that, are you ready to close? Now you're not dropping your fee, you're buying certainty. And that is a real negotiation. So

Real Scripts For Common Pushback

SPEAKER_00 5:58

let's go through some scenarios. Starting off with the buyer asks what your assignment fee is. And the buyer says, What's your assignment fee on this? And you say, I understand why you're asking, but the real question is whether the deal works for you at this price. I don't price my deals based off of my assignment fee. I price them based off of what the market will buy. If the deal works, great. If not, send me the number where it does work. That keeps you calm, professional, and in control. You're not hiding. You're just refusing to let the buyer make your profit the center of the deal. Scenario B, the buyer says the fee is too high. The buyer says, You're making too much on this. And you say, I hear you, but my fee doesn't determine whether this is a good deal for you. Your numbers do. What price do you need to be at based off of the after-repair value, the repairs, and your profit? That's the move. Do not argue about whether you deserve your spread. Do not explain how hard you worked to find the deal. Do not give a TED talk about marketing costs, seller follow-up, lead generation, negotiation, transaction coordination, and risk. Just bring it back to the deal. Scenario C. The buyer says drop your assignment fee. So the buyer comes back and they ask you to drop your assignment fee and they'll close. You say, I'm open to discussing price, but I'm not negotiating my fee. What number do you need to be at? And what's driving that number? If they give you a real number, now you can evaluate it. If it still works for you, trade for those stronger terms. So you say, if I do that price, earnest money deposit needs to be $10,000 today and it's immediately non-refundable. There's no inspection, and we can close on this date. Does that work? Now you've turned a fee objection into a commitment test. The scenario D, the buyer's phishing and won't give specifics. So the buyer says, just drop the fee. You say, I'm open to real numbers. What's your price and what are your repairs? And what's the ARV assumptions? The buyer says, I just need it cheaper. So you say, Okay, I got it. Then it's probably not a fit. If you want to send a real offer with proof of funds and a close date, I'll review it. Otherwise, I'm moving forward. That filters out the unserious buyers immediately because serious buyers give real numbers. Fake buyers provide pressure. Scenario E, buyer threatens to walk. So the buyer says, if you don't drop your assignment fee, I'm out. Good. Let them walk, but stay calm. So you say, no problem. I'm not trying to force it. If the deal doesn't work for you, I'll move to the next buyer. If you change your mind, send your best number with proof of funds and a close date. That is strength, not arrogance, not ego, strength. Buyers respect strength, they abuse the weakness. Scenario F. The buyer says it's unethical. This one is rare, but it does happen. The buyer says it's unethical for you to make that much. So you say, I understand the concern. We're marketing our equitable interests in a contract and providing access, coordination, and a clean closing process. If the deal works for you at the price, great. If not, no hard feelings. Then stop talking. Do not argue ethics for 10 minutes. Do not get emotional. Do not try to convince someone to respect your business model. Keep it short and move on. Also, obviously, make sure you are operating correctly based on your state's laws and disclosure requirements. But do not let a buyer use fake morality as a negotiation tactic. Now use this when you're talking to your buyers. I don't price deals based on my assignment fee. I price deals based on what the market will buy. If you want it, give me your best number and the terms. That line is clean, it's professional, it's not emotional, and it puts the conversation exactly where it belongs. Price and terms, not our profit. So let's go into good version and the bad version. Starting off with the bad version, the buyer. What's your assignment fee? You. Why does that matter? The buyer. I just want to know how much you're making. You. That's none of your business. Buyer. Alright, I'm out. Now the deal is emotional. You turned a normal buyer question into a fight. So let's do the better version. The buyer. What's your assignment fee? You. I understand why you're asking, but the real question is whether the deal works at the price. If it doesn't, tell me what number you need to be at and what's driving that number. The buyer. I need to be $10,000 lower because repairs are heavier than anticipated. You got it. If I could get closer, I'll need stronger terms. Earnest money deposit today, non-refundable, no inspection, and we need to close on this date. If we do that, are you in? The buyer. Yes. Now you have either a real closer or just expose someone who is never serious.

Double Close And A Fail-Safe Text

SPEAKER_00 11:38

Now let's talk about when to do a double close instead of an assignment. If the buyer's entire issue is seeing your assignment fee and the spread justifies it, a double close can remove that friction. But don't overcomplicate your operation just to protect a buyer's ego. Double close when it makes sense, not because a buyer made you feel uncomfortable for making money. Typically, we do this when we're exceeding $50,000 or above. But it also depends on the price point of the property. So pay attention to that. If you're assigning a deal that you have under contract for $10,000 and you're wanting to make a $50,000 assignment fee, you should probably double close. If you're assigning a deal that's a $500,000 contract price for $550,000, well, that's 10%. It's probably going to be acceptable to your buyers as long as the numbers still work. Now let's give you a fail-safe text message to send your buyers in these scenarios. If the price doesn't work, no worries. If I adjust price, it'll only be with the stronger terms, higher earnest money deposit, non-refundable, and a firm closing date. That message is short, clean, professional, and it keeps you in control. The assignment fee objection is not really about our fee. It's about control. The buyer is trying to control the conversation. They want your profit to become the discount. They want your spread to become their margin. And if you let that happen, they'll do it to you every time. So remember, you do not negotiate your paycheck. You negotiate price and terms. If the deal works, great. If it doesn't, they can send their best offer. But the moment you start defending your assignment fee, you've already given the buyer too much power. Let me know what you guys think in the comments, regardless. Show me some love, like today's video. We'll see you guys tomorrow.