Explaining the Benefits of the Property

You need to explain the benefits to the seller

First of all, to carry out your mission, you will need to set up a private meeting with the owner(s).

I know that, for some people, appearance isn't everything. However, in the real estate business, first impressions are of immense importance.

Think about your attire; a suit and tie is formal, and it says that you mean business, but can also be intimidating. It may even be too professional; some research suggests that people show lower levels of trust towards people who look "overly" professional. One of my business partners in another project told me that he never does business with people who look like bill collectors.

That's why I suggest you wear a nice shirt and pair of pants, something casual, but which also says that you are a serious buyer.

Once you start talking about the property, you should try to figure out the owner's reasons for selling the property.

And second, ask him or them, directly, what they will do if they do not sell the property. This question turns the tables, and makes the owners think about all the negative scenarios that might unfold in the future if they do not sell the property quickly.

At this point, you are ready to reveal your proposition.

You will tell him about the subdivision of the house, and how he will get two apartments of his choice, and you will explain the math.

Be certain to explain in depth how the final market value of the two fully renovated apartments will either match or surpass the value that he is currently asking for the house.

Next, you should elaborate the idea a little further. Many people are not acquainted with the fact that the smaller apartments are more likely to sell faster than larger houses or apartments. Don't forget the unwritten rule in the real estate business: the smaller the apartment, the faster/easier it is to sell. And vice versa: the bigger the property, the harder it is to sell, and the longer it takes.

Explain to the owner/owners that he/they can live in one apartment, and sell or rent the other one.

The longer the property has been for sale, the more willing the owner will be to reduce the selling price. If he doesn't agree to the deal, he will not be able to afford to buy or renovate one apartment, let alone two, which you are offering him in the deal.

It is essential that you explain to the owner/owners that he/they will receive newly renovated apartments or totally new apartments (if you decide to build the apartments from scratch). They would not have to invest any money and they would not have to deal with any construction/renovation work.

Some sellers, whose properties have been on the market for a longer period of time, will resort to repairing the property in an attempt to keep or raise the value of the same property.

In this particular case, the seller will not have to do that. They do not even have to move a finger, let alone move to another neighborhood

The seller will get to stay in the same neighborhood. This automatically means avoiding the stress of hunting for a new home, moving places, leaving the friends and neighbors in the area who he or she knows and loves.