This Negotiation Mistake Costs Investors Thousands—Avoid It!

Are you losing money on real estate deals without realizing it? One simple mistake—making the first offer—could be costing you thousands.

When you speak first, you risk offering too much or giving sellers leverage to shop around for a better deal. Brad Smotherman, a seasoned investor, swears by one golden rule: stay silent and let the seller speak first.

In this guide, you’ll learn why waiting gives you the upper hand, how to get sellers to reveal their price first, and how this strategy can help you land more profitable wholesale real estate deals.

Why Making the First Offer Can Cost You Money

The #1 Negotiation Rule That Puts You in Control

Brad believes that giving a number too soon can put you at a disadvantage. Instead, he focuses on learning about the seller’s situation first. By holding back, he gathers important details that help him craft a better deal—one that works for both him and the seller.

3 Costly Mistakes Investors Make When They Speak First

Your Offer Becomes Their Bargaining Chip

• Imagine you offer $250,000 for a property. Instead of accepting, the seller takes your offer to another investor and says, "Can you beat this?" Now, you’ve just become their leverage to get a higher price. By waiting and letting them reveal their price first, you avoid being used as a bargaining tool.

You Might Offer More Than Necessary

• If a seller is willing to take $200,000 for a property but you offer $250,000, you just lost $50,000. Waiting to hear their price first can prevent this costly mistake.

It Opens the Door for Creative Financing

• Many sellers assume offers are all-cash deals, but that’s not always the best option. By waiting, you can explore options like seller financing or subject-to deals, which can be more profitable.

Step 1: The Triage Call—How to Get Key Seller Info

Brad starts every negotiation with a triage call. This quick conversation helps him gather crucial details before discussing the price.

Things You Need to Know Before Making an Offer

During the triage call, the following five numbers are crucial:

1. Mortgage Balance: How much does the seller still owe?
2. Walkaway Cash: How much money do they want to leave with?
3. Repair Costs: What’s needed to fix the home?
4. After Repair Value (ARV): What’s the home worth after repairs?
5. Any Late Payments (Arrears): Are they behind on their mortgage?

Step 2: Smart Questions That Get Sellers to Reveal Their Price

Instead of jumping into numbers, Brad asks open-ended questions to get sellers talking. This helps him understand their motivation and what’s important to them.

Examples of Smart Questions to Ask:

1. "What’s the story behind this property?"
2. "What repairs do you think need to be done?"
3. "How soon do you need to sell?"
4. "Is there a mortgage balance we need to consider?"

These questions establish a rapport with the seller, while subtly gathering the necessary financial context to strategize a winning offer.

Step 3: Closing the Deal—How to Stay in Control Until the End

Once it’s time for an in-person meeting, Brad focuses on building trust and creating a comfortable environment before discussing numbers.

Building Rapport and Steering the Conversation

• Arrive Early: Walk around the distressed property, take notes, and be prepared.
• Observe Their Body Language: Pay attention to signs of hesitation or urgency.
• Ask One Final Question: "What will you do if this house doesn’t sell?" This reveals their level of motivation.

Final Thoughts: Mastering the Power of Silence

Mastering real estate negotiations isn’t about who talks first—it’s about who listens better. By letting sellers reveal their prices first, you stay in control, avoid overpaying, and create opportunities for creative financing. Brad Smotherman’s story proves one thing: silence is a powerful tool in real estate investing. The less you say, the more you can gain.

If you’re serious about closing better deals, protecting your profits, and building long-term wealth, start using this strategy today. Stay patient, ask the right questions, and let the seller talk first—because sometimes, the best deal is the one you didn’t have to fight for.

Ready to level up your real estate game? Apply this strategy to your next deal and see the difference for yourself!