July 11, 2020
How Will a Second Wave of Coronavirus Affect Real Estate?
How to Buy Property Right Now During COVID-19
Will there be a second wave of the Coronavirus pandemic? That is the question that a lot of people are asking right now. The media is flooded with current projections and reports about how the pandemic will play out.
Regardless of whether there is a second wave of coronavirus or not, the time to get real estate deals is right now.
Whatever is trending in the news right now, you can use as a negotiating point to get better real estate deals than ever before. If you are working with a motivated seller, then give them reasons to sell now instead of later based on current information. Your goal is to keep them motivated to sell to you and not another real estate investor.
How do you do that?
Here are three ways:
1. Market to Homeowners Who Want to Sell Property Right Now
Market to home or business owners who want to sell property right now and not tomorrow.
Once you find a qualified seller, find out exactly how much they want for their house right now. Also find out how they arrived at the asking price. Sellers calculate the market value of their homes in different ways. If you are going to negotiate a deal then you have to know how they approach the concept of real estate value and their mindset when selling their home.
Once you know their strategy, you can find a way to discredit their reasoning for placing a market value on their home. It’s as simple as using current real estate data that refutes their value claim and other things they are assuming to be true. To counter their asking price, you need to conduct a tremendous amount of research and stay current on all real estate trends and news in the media.
2. Solve the Human Problem
To negotiate a real estate deal, you have to be a good listener. Pay attention to the homeowner. Find out what their situation is. And come up with a way to solve what we call the human problem.
Real estate is a physical, tangible thing. What controls real estate, however, are people, not things.
Remember: People operate on emotions.
Since humans control the real estate market, if you solve a human problem, you will always solve a real estate problem.
Yet, even if you solve the problem, you need to know if homeowners trust you enough to put this piece of real estate in your hands at a particular price that you are willing to pay? If you have done your homework and proper analysis of the property, then you can earn their trust by justifying why you set your purchase price and use strategic rationale on why they need to sell to you right now.
3. Stress the Uncertainty of the Real Estate Market
With the second wave of the coronavirus coming, you can use that as leverage to create uncertainty with sellers. While it is true that the current interest rates are low and that the market does not need drastic correction, a second wave of COVID-19 could trigger these problems. Present research to the client as to why uncertainty in the market is likely and why selling now at your purchasing price is in their best interest. Remind them of what the news is reporting and what the latest real estate projection look like.
The more you focus on the certainty of uncertainty, the more willing the owner is to sell the house at a discount that falls within your price range.
As it stands right now, the overwhelming majority of real estate experts are expecting another correction in the real estate market. That information gives you more ammunition to negotiate a better deal. So, regardless of whether a second wave of the pandemic occurs or not, you can use the fear of a pandemic as leverage to negotiate the deal you want.
You Can Be Successful in Real Estate Regardless of COVID-19
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