Summary of BiggerPockets Real Estate Podcast Episode: "How I Get Lower Offer Prices Accepted in 2025"

Release Date: August 6, 2025

Hosts:

• Dave Meyer: Head of Real Estate at BiggerPockets
• Henry Washington: Experienced Real Estate Investor

Introduction to Negotiation Strategies

In this episode, Dave Meyer and Henry Washington delve deep into the art of negotiating real estate deals, both off-market and on-market. They emphasize that negotiation is not just about haggling over price but building genuine relationships and understanding the seller's needs to create mutually beneficial agreements.

Negotiating Off-Market Deals

Building Trust and Understanding Seller’s Pain Points

Henry Washington opens the discussion by highlighting the importance of not fixating on the asking price. He states, “[When you’re analyzing a property,] the least important number on that offer sheet is the asking price” (00:00). Trust-building is paramount, especially in off-market deals where there’s no public listing price.

Establishing Rapport: Henry emphasizes the need to empathize with sellers to uncover their motivations for selling. “Empathy is key in these situations,” he notes (05:10). By understanding the seller’s pain points, investors can tailor their offers to meet the seller’s specific needs.

Transparent Offer Presentation: Henry adopts a brutally honest approach when presenting offers. He explains his methodology of clearly laying out all costs involved in a deal to ensure sellers understand the rationale behind his offer. “I want them to understand it’s not going to come in at the number you probably think it’s going to come in at,” he explains (07:15).

Managing Volume and Rejections: Henry shares his success rate, mentioning that he typically makes about 10 to 15 offers to secure one accepted deal (22:25). Persistence and volume play crucial roles in his strategy, with follow-ups being essential to eventually close deals.

Negotiating On-Market Deals

Understanding the List to Sale Ratio

Dave Meyer introduces the concept of the list to sale ratio, noting a shift in market dynamics. “For years it’s been at like 102, 103%. So people on average paying 2 or 3% above what’s normal. Now it’s closer to 98,” indicating buyers are now paying below the list price on average (29:00).

Leveraging Days on Market: Henry points out that the number of days a property has been on the market is a critical indicator for negotiation. “Days on market is always going to be your first indicator if you are making an offer on a property that just went on the market for a while, that’s your first clue to let you know that you’ve got some wiggle room to make an offer at a price point lower than list price” (30:27).

Non-Price Negotiation Tactics: Henry discusses alternative negotiation levers beyond price, such as offering large non-refundable deposits or quick closing periods to make a lower offer more attractive. “If you want to get a deal for less than what it’s listed for and it just came on the market, I can offer less, but I have to give the seller something else that might be enticing to them,” he explains (32:27).

Working with Real Estate Agents: Dave emphasizes the importance of partnering with agents who understand and support your negotiation strategies. “You need to find an agent who’s willing to work with your strategy,” he advises (36:34). A credible and experienced agent can set the stage for serious negotiations, enhancing the chances of offer acceptance.

Key Takeaways and Best Practices

1. Build Genuine Relationships: Whether dealing off-market or on-market, establishing trust and rapport with sellers is crucial. Empathy and transparency can set you apart from other investors.

2. Understand Seller’s Needs: Identifying and addressing the seller’s pain points allows for tailored offers that meet their specific circumstances, increasing the likelihood of deal closure.

3. Be Transparent: Clearly outline all aspects of the offer, including costs and timelines, to ensure sellers understand the value and rationale behind your proposal.

4. Leverage Multiple Tricks: Utilize non-price negotiation tactics such as quick closings, non-refundable deposits, and buy-downs to make your offers more attractive without necessarily increasing the price.

5. Persistent Follow-Ups: In off-market deals, persistence is key. Making multiple offers and maintaining regular follow-ups can eventually lead to successful negotiations.

6. Adapt Strategies for Market Conditions: For on-market deals, be mindful of the list to sale ratio and adjust your negotiation tactics based on how long a property has been on the market.

7. Choose the Right Agent: Partnering with a knowledgeable and supportive real estate agent can significantly enhance your negotiation effectiveness, especially in competitive on-market scenarios.

Notable Quotes

• Henry Washington (00:00): "What a seller wants for their home is between them and Jesus. I'm going to make the offer that is in the best interest of me and the profit I'm trying to make."

• Dave Meyer (03:33): "They know their house needs work. Now, occasionally you run into the delusional seller who thinks their house is perfect when it's not. But most of the time they know."

• Henry Washington (25:06): "Use your powers for good. A real estate deal needs to be a win for everybody. If it is not a win for everybody, then you probably shouldn’t do the deal."

• Dave Meyer (42:14): "Every success negotiation I've ever had in my life comes from a high degree of emotional intelligence, understanding what the other person's problem is, and put framing yourself as the person who can solve that solution best."

Conclusion

This episode provides a comprehensive guide to effective negotiation strategies in real estate investing. By focusing on building trust, understanding seller motivations, and employing both price and non-price tactics, investors can enhance their chances of securing favorable deals. Henry Washington’s transparent and empathetic approach serves as a model for creating win-win scenarios in the competitive real estate market.

For those looking to deepen their negotiation skills, Dave Meyer recommends Chris Voss’s book "Never Split the Difference," highlighting its relevance and effectiveness in high-stakes negotiations.

Note: This summary excludes advertisements, intros, outros, and non-content sections to focus solely on the valuable insights shared by Dave Meyer and Henry Washington.