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Sep 16

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Real Estate Wholesaling – Starts With Understanding The Motives of People

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 Real estate wholesaling is as much about people as it is about real estate. Aside from knowing the wholesaling process, success in wholesaling depends upon understanding the motives of people. What makes investors buy? What makes sellers sell? What makes sellers motivated enough to sell at a discount?

 

 

Most of the motives that you will encounter in real estate are based on at least four primal instincts:

  1. To increase personal comforts and freedoms.
  2. To be liked, respected, and esteemed by friends, family, and society.
  3. To feel as if life has some meaning or purpose.
  4. To nurture and protect family members even when they have passed away. As you will see when negotiating estate properties with the family.

 

These four primal instincts have an impact on real estate decisions made by sellers, buyers and even yourself. Your knowledge of these motives and being able to recognize them when they are present in your negotiations will enable you to know which deals are worth pursuing and which ones you need to walk away from.

For example there will be times when you may notice that a family member is still protecting their loved one on an estate property and unwilling to negotiate on the price. They may feel that their family member loved the home and therefore your offer disrespects their memory. That is a good indication that you need to walk away and give them some more time. Touch base with them again in 30 days and see how they are doing. You will be surprised how much things change once the bills start coming in and sometimes just giving them some extra time to grieve and accept their loss is enough.

Maybe your negotiating with a seller whose motive is to increase personal comforts and freedoms. If the seller is driven by this motive then it will be hard to get them down on their asking price as they have already spent that money in their head and they have BIG plans. They are seeking comfort and they are focused on nothing else. I generally walk away from a seller with this motive as it is impossible to negotiate with them to a price where you need them to be to create a deal.

As you begin to recognize the motives that drive seller and buyer decisions you will begin to see which properties are even worth your time pursuing. Your time is your most valuable asset, don’t waste it chasing properties that will never become deals that make you money.

 

To Your Success,

Carol Stinson

 

About the author

cstinson

Carol Stinson is a Real Estate Mentor, Author and Entrepreneur who continues to thrive in today's real estate market. Her concept of success is to never stop learning new techniques and then put what you learn into action expecting results. She is dedicated to helping others succeed by sharing what works in today's real estate market. Her strategies are effective, her techniques work and she is always updating them to conform to the ever changing real estate market.

Carol's biggest passion is people! Her love for others and dedication to help them succeed is genuine and ongoing. She created Real Wholesaling in an effort to help others find their way to financial freedom through real estate.

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