How To Overcome Objections By Motivated Sellers In Real Estate Investing
In real estate investing, having all the numbers relating to a deal is important to make an offer that both gets accepted and makes you a profit. A lot of times when I talk to motivated sellers, I find there is some information they are not willing to disclose. Usually they do not want to discuss the mortgage balance among other issues.
So how can you get all the information you need? In real estate investing, having all the numbers relating to a deal is important to make an offer that both gets accepted and makes you a profit. Most often when I talk to motivated sellers, I find they are not willing to provide some of the information I need to evaluate the deal accurately. Usually they do not want to discuss the mortgage balance among other issues.
So how do you overcome these objections and get all the information you need?
Over the years in my real estate investing business, I have come to learn to deal only with sellers who are really motivated.
They must provide all the information I need to evaluate the deal without pressure. I am not interested with sellers who are testing the ground so they can consider if to sell their house to me.
Most deals from motivated sellers are submitted through my real estate investor website. In this case, I only need a few minutes to evaluate the deal and make an offer because my website does the job of pre-screening them and pre-negotiating with them.
Here are a few common objections and how to overcome them:
Mortgage balance:
When you ask for the mortgage balance, some sellers will ask you "why do you want to know" or tell you it is none of your business. A simple statement can clear this up:
"In order for me to able to evaluate the deal and make a fair offer that makes sense both to you and me and pay off the outstanding mortgage when I buy it, I must know the mortgage balance owed on it."
Then I go completely silent… say nothing!
Usually they will provide all the information you need.
They have to know that without mortgage balance, you cannot make an offer. Motivated sellers will provide this information. You have no business talking to them further if they cannot provide this information.
A motivated seller will tell you anything in the world to sell you their house.
Repairs:
Do not be surprised that their estimation of repairs is always on the lower side. I have learned that I have to fix bathrooms, kitchen, replace carpet and paint it.
Before I ask for repairs my conversation goes something like this:
"How long have you lived in the house?"
"Have you done any remodeling on it?"
"So what repairs does the house need?"
I will always ask about carpet, paint, kitchen and bathrooms. You will get more reliable answers if your line of questioning goes this way.
Asking price:
This is the toughest part of the negotiation. Of course you need to know the mortgage balance before you can ask this question or even make an offer.
This is how I ask the question:
"If I can buy your house all cash and close quickly, what is the least you can take for it?"
Once they give an answer, I usually just say, "Hmm…".
Then I go silent.
Not a word until they speak.
In most cases, they will talk themselves down without me saying another word.
Sometimes I will still follow up with "Is that the best you can do?".
this technique usually works wonders.
Good luck in your next real estate investing deal.
Simon Macharia is a real estate investor in Dallas Texas, and uses an interactive real estate investor website to pre-screen and pre-negotiate with motivated sellers. Learn how you can close more deals using less money, time and effort with a website for real estate investing.
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