When looking for investment purchases, there are several phases every homebuyer or investor has to go through. Phase one is researching and finding a potential seller or get an assistance of a Real Estate Broker, normally done through browsing listings on social media or online listing platforms like Earthauz. Phase two is contacting and connecting with the Real Estate Broker to state your interest in purchasing their property. Stage three is discussion with the Broker until you’re able to put a deal together.
An expert investor and a good Real Estate Broker will attempt to close the deal during every phase of the process. Closing a deal means that everyone involved in the deal found an agreeable negotiation and is willing to finalize the transaction on those terms.
But sometimes, homebuyers prefer direct-to-owner transactions, thinking they can negotiate further and ultimately minimize additional costs. If you share sentiments with these type of homebuyers, here are three closing techniques you may use.
The Soft Close (Or Trial Close)
The soft close, sometimes referred to as a trial close, can be used during any point of the negotiation. It’s a relaxed way to test the waters and feel the owner out – if he/she understands your needs as a client and is not just focused in getting rid of the property. The goal is to get the property owner to respond with positive feedback. You want to condition the property owner to feel comfortable saying YES to your negotiated offer.
The Direct Close
A direct close is used when you’ve been discussing the deal for a while, you’ve already conditioned the property owner's responses as best as you can and you’re ready to try to close the deal. You may say something like, “I think this is a great deal for both of us. Where should I send the offer?”
This type close will let you know exactly where you stand with the property owner because they are forced to make a decision. It is straightforward and may also be prone to objection but nonetheless the owner will feel obligated to explain their hesitation to move forward.
The Hammer Close
Last but not the least, there’s the Hammer close. This close is normally used after you’ve dropped a few trial closes and failed at using a direct close. If the owner is still engaging and there is a definite interest, then you can attempt to drop the hammer. This is a forceful close with a hard call to action.
You may say something like, “Let’s close this deal. You and I both know it’s a great offer. Give me an email address so I can send it over.” This close is a bit aggressive with a demanding tone, yet when used at the right time, it can definitely assist you in closing the deal.
If you find the above situations intimidating, then those are just few of the reasons on why you should get a Real Estate Broker to assist you with real estate transactions. Knowing how to close a deal is one of the most important factors in becoming a successful Real Estate Professional.
Earthauz offers various properties from Philippines Top Real Estate Professionals. On Earthauz, you are guaranteed with hassle-free transactions in every step of the buying process.