Norman Bartholomew’s Property, Business And Life Blog

More on BMV

We’ve had a huge response from people signing up for our “ready made BMV deals” and many people are calling for advice on how to start finding their own, inparticular I had a call this week asking about how to handle the negotiation process. No doubt many of you have read the “textbook theories” knocking about on negotiating deals, however we must remember we’re dealing with ordinary people, many of whom are facing grim times and perhaps will be suspicious of “Cash Buyers”. I mean, I hear horror stories from vendors about other “BMV buyers” with their high and mighty attitudes who pull up in their signed up 4×4’s with “We Buy Property For Cash” plastered all over the side! Most of the vendors I speak to are looking for discretion and tact, they certainly don’t want all the neighbours knowing what’s going on.

I always try to be honest, understanding and caring, the chances are they’ve already spoken to several other “cash buyers” either from adverts in the paper or on websites, so they probably know you’re going to be looking for 20% or so below market value. The biggest weapon in your arsenal is your attitude, you have to get them to like you because, you’re NOT the one buying here, you’re the one selling, it’s not about buying their house, buying their house is a by-product of you selling yourself, people buy from people!

If you can come across as a genuine caring, sympathic, honest person your purchase ratio will increase dramatically.

What you have to do is listen, get them to open up, they’ll be trying to get you to give an indictaion of an offer immediately, but I’m just honest, I say I probably won’t be able to offer you what you want, I tell them I’m a cash buyer but that I have to re-mortgage immediately after purchase to get my money out for my next property and that buy to let mortgages are governed by the rent valuations, and rents have not increased inline with values, so the amount I can pay is governed by the survey. I quickly give them a sense that I’m NOT just there to rip them off, as soon as there is some rapport I get them talking and I just listen, I use the 3-second rule, when they stop talking I just remain quiet for 3-seconds and most people can’t handle it and start chatting again. The more they talk the more chance you have of doing a deal. This is the same both on the telephone and on a viewing visit.

Obviously this is not going to happen everytime, it stills come down to establishing them as being highly motivated sellers, but the competition for BMV is going to increase dramatically over the coming months and honesty is one of the tools that can set you apart in a competitive market.