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Financial Jiu Jitsu will teach you how to gain leverage in the real world, step by step, until you are confident you no longer need more.

Sell From A Place of Power (If You Can)

Sell From A Place of Power (If You Can)

There's something glorious about selling something when you don't need to.  Could be a car, a house, or really anything of value you have as a luxury and not as a necessity.  Two things come to mind right away that will always make you happier with the end result when you sell from a place of power.

anybody ready to barter?

anybody ready to barter?

1.) You always find the right customer. 

The person who's deliberately looking for what it is you have to sell is always the best fish to hook on the line.  It makes the purchase overall smoother, because more often than not, they know what they're looking for, and exactly what to look for when something that they want is in front of them.  A guy looking for a corvette isn't going to scope out your 350Z because they're "similar" unless they have a substantial open mind.  Placing impulse decisions aside, people have a pretty good idea of what they are going to buy before they buy it, even if they claim to be "shopping around."  Here is the other kicker about finding the right customer:

2.) They're willing to pay the right price. 

When you are selling a vehicle because you're bored of it and nothing more, you're not going to settle for less than what it's actually worth - because if you don't get what you're asking, you walk away from the deal without a second thought.  When you find the right customer, whom have already made up their mind about what it is they want, they're going to be willing to drop a bit more cash to make that dream come true.  My philosophy on selling is that you should always be willing to budge a little on price, and you appropriately list it for more than you actually expect to be offered.  This is simply the way the free market works.  People love to haggle, they like to feel like they got a deal.  So marketing has evolved to make it so even when people think they are getting a deal, they're paying full price, wearing a sneaky mask.

Now, you can take this rule and apply it to buying as well.  Desperate people are the best ones to buy from, because they're always willing to go lower than their original offers, sometimes by a significant margin.  The bottom end of this spectrum would be drug abusers, but we'll skip over them since they sell stolen stuff more often than not. You don't want to get mixed up in that.

We can discern the middle class/ lower class threshold by examining this rule.  In groups of the lower class, they are going to be more likely and more frequently selling things because they have to - paying medical bills, a car payment they can't afford, rent, other necessities of life.  This puts them in the awkward situation of being poised to be taken advantage of on a financial level.  It's pretty easy to recognize desperation in a seller, but a tell tale sign is they may be fixated on a specific number, which could well be the exact amount they need to "survive" whatever hurtle they're trying to make it through.  The problem is that when you're desperate, some is not as good as all but it's better than nothing.  They need $1000.  You offer $800 cash, right here, right now.  They struggle and say their lowest is 1K.  You say, "Thanks for your time," and walk away.  But they stop you.  "Can you do $900?" They ask. "Sorry buddy, the most I can give you is $800.  Take it or leave it."

They'll take it.

The moral of this post can be summed up in a single sentence: 

Whether buying or selling, never be desperate.
Calculate your lifetime savings ratio

Calculate your lifetime savings ratio

Rental property tax benefits and net worth increase - yearly

Rental property tax benefits and net worth increase - yearly