September 21, 2016 in Investing In Real Estate
I get a lot of questions about how to talk to motivated sellers. More specifically, folks want to know “what’s the secret to getting a yes from motivated sellers”.
I wish I could tell you there is a secret process but really there isn’t. Even a lot of experienced investors don’t like having these conversations. And when it comes to negotiating, forget about that! They make their offer while looking down at their shoes. Now that inspires confidence doesn’t it?
If you are going to succeed in this business, you have to master talking to sellers.
Once you begin to think of every interaction with a motivated seller simply as a conversation where two (or more) people are trying to find a solution to a problem, everything changes. Stop and think for just a minute about how easily you have conversations with friends and family.
When you are speaking with a motivated seller, just think of these interactions as opportunities to help someone out with their real estate related problem. You are simply having a conversation that will help you get a “yes” from that particular seller.
Even though there really is no secret to getting a yes from motivated sellers, I do have a few tips for you that will make this a little bit easier.
Be Prepared When You Arrive at the House
This is huge. If there were a secret to getting a yes from motivated sellers, this would certainly play a big part in making that happen.
I talked to someone a few days ago that did absolutely no preparation before meeting a seller at the property. This person’s thinking was that they would go back and put together some comps after they looked at the property. (Lazy man’s thinking}. You need this information in advance.
I talk a lot about branding these days. Showing up at a house unprepared is a real brand and credibility killer. It’s virtually impossible to be seen as a competent professional when this happens. Remember that you are trying to build rapport with the seller at this initial meeting. You want to be seen as a credible, trustworthy, knowledgeable real estate professional that makes them want to do business with you.
So let's dive into getting a yes from motivated sellers.
6 Things you Need to Do To Get a Yes from a Motivated Seller
- Always pull comps. You need to be perceived as a person that is knowledgeable; one to be taken seriously, so you need to be prepared. Know the home values in the area by pulling comps.
- Give the seller a business card with your picture on it so they can remember you. Some investors think handing out business cards is unnecessary today, but that couldn’t be further from the truth. You want the seller to have your contact information at their fingertips. Make it easy for the seller to contact you.
- Have a general idea of what the neighborhood is like before you meet with the seller.Plan to arrive about 20 minutes early so you can drive around the neighborhood. I will typically go 4 or 5 blocks in each direction. If the house is on a great street but the area is generally not a great you need to know that before you make your offer.
- Be on time. Being late makes you look bad before you’ve even started.
- Always treat the seller with respect. Don’t tell them how awful the house is. They already know the condition of the property. It’s OK to bring up the fact the house will need a lot of costly repairs if that is the case.
- Look and dress professionally. Don’t leave your rehab covered in drywall dust to go talk to a seller. It’s OK to show up in jeans and a nice shirt, but you should leave the worn out tee shirts and muddy work boots at home. You want to inspire confidence in the seller. You want them to choose YOU.
Finally …Be Direct and Practice the Art of Conversation
The best piece of advice I can give you is to ask the seller what they want.
You might do it by asking one of these questions:
“If I were to wave a magic wand, what is it you would want to happen with the property”? Or, “What can I do to make selling this house to me an easy decision? Ask the seller if there is “something else” they need in addition to money. You won’t know until you ask.
If you are looking for someone to do seller financing, just ask. You never know what the answer will be unless you ask.
Where is the best place to practice the art of conversation?
On the phone. After all, they can’t see your knees trembling or the fact you are working in your pajamas today. Whatever method you use, if it works that's all that matters. That will be YOUR secret to getting a yes from motivated sellers.
The Art of Conversation
Here is a link to another article I wrote on negotiation and the art of conversation. Just click here to read it…
Here's a Video, an Audio and an Article on How to Talk to Motivated Sellers
**Bonus. Get your property information form here too. Enjoy.
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