What to say to motivated sellers – REI Scripts and guides
We’re going to dive into some sales acumen in this article…
But here’s the TLDR version for what to say to a motivated seller…
“Start by understanding this is about the seller not you. Stop thinking about the NEXT thing you’re going to say, and instead, focus on the sellers needs. What a motivated seller really wants is having the confidence that you’re someone that’ll solve their problem for them.
What to say, starts with questions. Questions that dig deeper into their situation.
Here’s a few questions to throw into the conversation with a motivated seller:
- This is a nice house, why are you selling?
- What price are you looking for?
- What’s stopping you from listing it today? (this is for those that want a very high price retail price)
- If I can buy it today, pay for closing costs and any other expected costs, and avoid all the hassles of listing, what would you sell it for?
So that’s the short version of it.
Let’s dive a little deeper into running an appointment with a seller; AKA: what do you say?
1. Building Rapport
Ok, so you’ve actually done a hard part: FINDING a seller.
However the method for lead gen (and check out our guide on lead gen)…
This next step is the SAME no matter the lead generation method.
When it comes to talking with motivated sellers in the world of real estate investing, building rapport is a crucial step. It’s all about establishing trust and a connection.
Here are some effective ways to build rapport as a salesperson:
1. Be Authentic: People can tell when you’re not being genuine. So, be yourself. Authenticity goes a long way in building trust. Show a genuine interest in the seller’s situation and needs.
2. Active Listening: This is one of the most underrated skills in sales. Pay close attention to what the seller is saying, and respond thoughtfully. Ask follow-up questions based on their responses to show that you’re truly engaged in the conversation.
3. Empathy: Put yourself in the seller’s shoes. Understand their perspective, and acknowledge their feelings and concerns. Empathy helps in creating a connection and making the seller feel heard and understood.
4. Find Common Ground: Discover shared interests or experiences. It could be something as simple as both being fans of a local sports team or having a similar life experience. Finding common ground helps in building a sense of camaraderie.
5. Compliments: Give genuine compliments. Compliment the seller’s property or the way they’ve maintained it. However, be sincere and specific in your compliments. People appreciate when you notice the little details.
6. Body Language: Your body language speaks volumes. Maintain good eye contact, offer a firm handshake (if applicable), and use open and welcoming body language. A warm smile can also go a long way in making a positive impression.
7. Respect Boundaries: Respect the seller’s personal space and boundaries. Don’t push too hard or invade their privacy. Building rapport should be a comfortable and respectful process.
8. Shared Goals: Highlight shared goals and interests. If your goal is to help the seller get a fair deal while also making a profit for yourself, communicate that clearly. When both parties see a win-win scenario, rapport naturally grows.
9. Show Expertise: Demonstrate your knowledge and expertise in real estate investing. Sellers are more likely to trust someone who appears knowledgeable and capable of handling their property sale professionally.
Remember, building rapport is not just a one-time thing. It’s an ongoing process that should continue throughout your interactions with the seller. By establishing trust and a strong connection, you’ll be better equipped to navigate the intricacies of real estate investing and wholesaling, and ultimately, close successful deals.
2. Bringing Proof and Credibility
When it comes to talking with motivated sellers in the real estate investing game, one of your key assets is the impression you make. Sellers want to feel confident that they’re dealing with a professional.
Here’s what you should bring along to convey that credibility:
1. Credibility Packet: Think of this as your secret weapon. A credibility packet is essentially a folder packed with valuable information. It should include reviews, testimonials from satisfied clients, and examples of successful deals you’ve closed. This packet demonstrates your track record and proves that you’re the real deal. It’s your way of saying, “Here’s the evidence that I can deliver results.”
2. A Winning Smile: It may sound simple, but a genuine smile can work wonders. Enthusiasm is infectious, and when you approach the seller with a warm and friendly demeanor, it sets a positive tone for the conversation. A smile goes a long way in making a memorable first impression.
3. Business Cards: Always have a stack of business cards on hand. Leave a few of them around the property so that the seller can easily reach out to you if they have questions or want to move forward. It’s a small gesture that shows you’re accessible and professional.
4. Clipboard with Rehab Items List: This is a clever tool that serves multiple purposes. First, it makes it appear like you’re actively assessing the property, which reinforces your professionalism. Second, it allows you to jot down any necessary repairs or improvements, which can be useful for future discussions. It shows that you’re detail-oriented and focused on the seller’s property.
Remember, the goal here is to instill confidence in the seller. Real estate transactions can be high-stakes, and sellers want to know they’re in capable hands. Your credibility packet provides tangible evidence of your expertise, while your demeanor and preparedness reflect your commitment to their needs.
In the next section, we’ll explore how to use that clipboard effectively to assess the property and build trust. Stay tuned for more insights on talking to motivated sellers in the world of real estate investing.
3. Walk the House
Never solely rely on a seller’s description of their property. It’s essential to physically walk through the house, paying attention to every detail. As you move through the property, keep an eye out for anything that seems off or in need of repair, such as damaged floors or peeling paint. Take your time to observe, and don’t hesitate to ask the seller about any concerns you may have. This is not just about evaluating the property; it’s also a negotiation tactic.
By scrutinizing the property in person, you gain a more accurate understanding of its condition. When you eventually present your offer, the seller will have a clearer picture of why your offer may be lower than expected. This transparency is crucial for building trust and ensuring that the seller understands the rationale behind your offer. In essence, you’re “pre-selling” them on the offer you’ll make.
Walking the house is a critical step in the real estate wholesaling process (even if virtual wholesaling — this will have to be done at some point with boots on the ground).
It allows you to assess the property thoroughly and gather the necessary information to make a fair and informed offer. Remember, in the world of real estate investing, knowledge is power, and this is one more tool in your kit to navigate successful deals.
Here’s a video on how to run appointments:
4. Start with No – A Jim Camp Approach to Negotiation
Jim Camp, a renowned negotiation coach and author of the book “Start with No,” has introduced a unique approach to negotiation that centers around asking the right questions.
This approach emphasizes understanding the other party’s needs, concerns, and motivations before making your pitch. In the context of talking to motivated sellers in real estate, this method can be highly effective.
Here are some questions inspired by Jim Camp’s approach that you can ask a motivated seller:
1. Why are you looking to sell your property?: This question aligns with the idea of understanding their motivations. Are they in a hurry to sell, or is it a more long-term decision?
2. What are your most important goals in this sale?: By identifying their primary objectives, you can tailor your offer to better meet their needs.
3. What challenges do you anticipate in the selling process?: This question helps you understand any potential roadblocks and demonstrates your willingness to address their concerns.
4. How would you like to see this sale proceed?: This open-ended question invites the seller to share their vision, giving you valuable insights into their expectations.
5. What timeline are you comfortable with for closing the deal?: Knowing their desired timeline can help you structure an offer that aligns with their preferences.
6. Have you received other offers, and if so, what do they look like?: Understanding the competitive landscape can give you an advantage in crafting a compelling offer.
7. What would make this a win-win situation for you and us?: This question encourages collaborative thinking and can lead to mutually beneficial solutions.
Remember, negotiation isn’t just about convincing the other party to accept your terms; it’s about finding common ground and addressing their concerns. Jim Camp’s “Start with No” approach teaches us that by asking the right questions and truly listening to the answers, you can build trust and create win-win outcomes.
In the world of real estate investing and wholesaling, effective negotiation can make all the difference in securing off-market deals and building profitable relationships with motivated sellers.
So, start with the right questions, and you’ll be on your way to successful negotiations.
5. Giving Your Offer
When it comes to presenting your offer to a motivated seller, timing is crucial. This typically happens either on the same day, if you’re experienced and well-prepared, or a day after the initial conversation. Here are some tips on how to give your offer and break the ice, especially if your offer is lower than what the seller may expect:
1. Set the Right Expectations: Begin by reiterating that your goal is to provide a fair and mutually beneficial solution. Remind the seller that you’re there to help them achieve their goals, whether it’s a quick sale or a hassle-free transaction.
2. Express Gratitude: Show appreciation for their time and the opportunity to work with them. Let them know that you value their property and are committed to finding a solution that works for both parties.
3. Explain Your Process: Briefly outline the steps you’ve taken to assess the property, including the walk-through and any necessary repairs or improvements. This demonstrates your thoroughness and professionalism.
4. Present Your Offer with Confidence: When presenting your offer, be confident and concise. Explain the pricing strategy you’ve used, whether it’s based on market analysis, repair costs, or other factors. Make it clear that your offer is well-reasoned.
5. Highlight the Benefits: Emphasize the advantages of your offer, such as a fast and hassle-free sale, no commissions or listing fees, and your ability to cover closing costs. Reiterate how your offer aligns with their needs.
6. Be Transparent: Address the issue of your offer being lower than what some sellers might expect. Explain that it’s based on your evaluation of the property and the current market conditions. Encourage them to ask questions or seek clarification.
7. Listen Actively: After presenting your offer, allow the seller to share their thoughts and concerns. Listen actively, and be prepared to address any objections or questions they may have.
8. Negotiate with Flexibility: Negotiation is often a part of the process. Be open to adjusting your offer if it helps bridge the gap between their expectations and your proposal. Explore alternative solutions that could work for both parties.
9. Maintain Professionalism: Throughout the conversation, maintain a professional and respectful demeanor. Avoid pressuring the seller into a decision and give them the space and time they need to consider your offer.
Remember, delivering a lower-than-expected offer can be challenging, but by approaching it with transparency, professionalism, and a focus on the seller’s needs, you can build trust and increase the likelihood of reaching a mutually beneficial agreement. Successful real estate investors know that effective communication is key to closing deals with motivated sellers.
6. Answering Objections
It’s common to encounter objections when you present your offer to motivated sellers.
Understanding how to address these objections effectively can make the difference between a successful deal and a missed opportunity. Here are some objections you might face and how to respond:
Objections and Responses:
1. “That’s Lower Than I Thought”:
– Response: “I understand that the offer may be lower than expected. Our pricing is based on a thorough evaluation of the property and current market conditions. Keep in mind that by working with us, you won’t have to deal with the costs and hassles of listing, and we can close quickly.”
2. “I’ll Just Fix the House Myself”:
– Response: “It’s a valid option to consider. However, keep in mind that making repairs and renovations can be time-consuming and costly. By selling to us, you can avoid these expenses and the uncertainty of the market. Plus, we can offer you a hassle-free transaction.”
3. “I’m Not Going to Give My House Away”:
– Response: “I completely understand your concern. Our goal is to provide you with a fair and competitive offer. We’re not looking for you to ‘give’ your house away, but rather to help you achieve your goals quickly and efficiently. Our offer is based on a win-win solution for both parties.”
4. “Can You Match a Higher Offer I’ve Received?”:
– Response: “We always strive to provide competitive offers. If you’ve received a higher offer, we’d be willing to discuss the details and see if there’s room for adjustment. Our priority is to find a solution that works for you while ensuring a smooth and hassle-free process.”
5. “I Need More Time to Think About It”:
– Response: “Taking time to think it over is perfectly reasonable. We want you to feel comfortable and confident in your decision. We’ll be here to answer any questions you have and provide any additional information you may need.”
6. “I’ve Had a Bad Experience with Investors Before”:
– Response: “I’m sorry to hear about your past experience. We’re committed to professionalism and transparency in our dealings. We can provide references and share our track record to help you feel more comfortable with our approach.”
7. “What If I Change My Mind Later?”*
– Response: “We understand that circumstances can change. While we aim for a straightforward transaction, we’re open to accommodating changes within reason. We want this to be a positive experience for you.”
Remember, addressing objections is a crucial part of the negotiation process. By listening carefully to the seller’s concerns and responding with empathy and professionalism, you can build trust and increase the likelihood of reaching a mutually beneficial agreement.
It’s important to recognize that only a fraction, typically around 10% to 30%, of your appointments will result in an immediate acceptance of your offer. That’s where effective follow-up comes into play. To manage your interactions and keep track of potential deals, consider using a Customer Relationship Management (CRM) system (Check out our guide to getting your REI CRM)
Following up with motivated sellers involves a systematic approach.
After your initial appointment, send a thank-you email or message to express your appreciation for their time. Mention the key points of your offer and reiterate your commitment to finding a solution that aligns with their needs.
Then, establish a follow-up schedule.
Send periodic updates, share any relevant market insights, and inquire about their thoughts or any changes in their situation.
Consistency and persistence are key in real estate investing, as deals can evolve over time. Remember, some sellers may need additional time or information before making a decision, and your diligent follow-up can make all the difference in securing a deal.