The book keeps referring back to a principle of finding a motivated seller. If the seller is motivated the buyer is at a better negotiation position of discussing the price or the terms and conditions. So the buyer could get the property greatly below market value (within ethical boundaries).
The book discusses a couple of reasons for the seller to be motivated. There could be many reasons that you may not immediately think of.
When dealing with the seller, trust and respect should be given from beginning. You should try to help them in their property problem. Always follow-up the discussions. Do not waste people’s time and don’t mess them. The seller should realize you have the money. Be prompt and professional.
You want to know the reason they’re selling the property. Also, you want to know if any other investors are interested.
Rather than asking into small details, high level questions should be asked.
When dealing with estate agents one of the most important things is the agent should feel they help you. Respect them and don’t ever try to cut their commission. You want a property under market value but don’t be direct saying this to them, instead use less direct questions to gather information.
Some good questions include the followings.
Do you have an empty property? Has it been on the market for long? Is there more than one agent selling it? Rather than asking if there is a desperate seller, a better question would be, do you have any seller that keep calling for updates?
If you buy on normal price the property prices may go up on long term, however you should always buy property with the assumption that its value doesn’t go up.