Wholesaling Houses and Negotiating with Motivated Sellers Part 4

Hope you had a great week! I am actually pretty stoked because I think I just locked down another deal for 8K I am supposed to go sign the contract tomorrow and the best part is I already had a buyer for the property!!! Stick with me and I will show you a thing or too 😉 How would you like to sell a property in minutes?!?!? It’s all about the buyers list baby! Actually it is all about the WAY you handle your buyers list. We will talk about that in another post.

Well let’s get back to our little discussion on negotiating with motivated sellers. I have tried to lay out for you some of the major points when you are wholesaling houses and talking to a motivated seller. Hopefully it has been helpful to you! The last and major part of any real estate negotiation is the close. Most real estate investors are terrified of closing. Matter of fact, most people in any type of sales position are not looking foward to the actual close. Don’t get me wrong! We all want the deal to close so we can get paid but that is not the type of closing I am talking about.

I am talking about the type of close that takes place when you have to actually get the seller to sign your contract. Most people are terrible closers and there is one major reason for this. It is because you have to apply a little PRESSURE in order to be an effective closer. Now listen to what I am going to tell you, because this is really important. The better you are at building rapport and engaging the motivated seller the EASIER the close will be. 

If you are terrible and getting the seller to like and trust you, there is no way in hades that you are going to be able to close a seller unless you offer them 100% full price! On the other hand, if you took all the right steps by showing interest in the seller, asking intelligent questions about the seller (not necessarily realted to the sale of the house), and conveying confidence that you can solve the sellers problem, you will find that the close comes quite naturally. Ok, so what are some helpful tips when it comes to closing a motivated seller?

Ask for the Business

You know whatever business you are in you have to remember to actually ASK for the business. You can give the greatest presentation in the world but if you just finish it with a “OK, just let me know what you want to do,” you are not going to get very far. When you ask somebody something it puts them in a position to where they are going to have to answer you. They actually have to think and it puts just a little bit of pressure on them to take action either way.

Sometimes I have a weakness to sales people are anybody in general when they ask me if I want something. Especially if I feel they have done a good job with their presentation. A waitress is a good example of this. The restaurant business is based on ASKING for the business. Perhaps you have heard this question before “Would you like fries with that?” Do you think that is a question that they ask you because they feel like it? NO! They are told to do this because they know the numbers show that if you ask for the business a good percentage will give it to you.

Test Close

Using a test close will really give you a peek at the mind of a motivated seller. Basically this is the way it goes.

“Mr Seller, if I can do X will we be able to come to an agreement today?”

I cannot tell you how many times that has helped me close a wholesaling real estate deal. The reason this is so helpful is because if whatever “X” is not enough for them to strike the deal, they will tell you. If they don’t tell you, you will need to ask the extra question.

“Well, Mr. Seller, I understand you really want to sell this house, what is it that is keeping you from putting this house behind you?”

You will use the test close just a little before you get into the main close. This will help you what REAL objection you are going to have to overcome to get the deal done. Suprisingly enough, it is not always price that is holding a seller back from selling the house. It could be a number of things. For example, the lady at the house I just left today is still slightly attached to the house because it was her mothers and she grew up in it. So I had to be very sensitive to that fact and let her know that I felt her pain. However, the house is becoming a burden to her and because it has been vacant, somebody stole all of the copper out of the air conditioning unit. This leads me to my next point.

Remember the Pain

Ok, so we are almost there. When you are asking for the close you need to incorporate their reason for selling (the pain) in the question.

Mr. Seller, If I could give you 50K for your house and close in a few weeks so that you won’t have to worry about your annoying tenants anymore, do you think you will be able to put this house behind you?”

When you bring up that pain it triggers something in their mind that makes them remember all that the house has put them through and automatically makes them want to accept your offer! They may even need to think twice to reject it. Remember what I told you about how I am a sucker when the waitress asks if I want dessert. If she gave great service I almost feel obligated to take her offer!

Well this has been a brief primer on negotiating with motivated sellers in your wholesaling business! I hope you have enjoyed it and if you have any questions for me about negotiating be sure to leave a comment and let me know. Also, if there are any other questions you may have about real estate investing or wholesaling houses  comment about that too. I will do my best to answer with a post just for you!

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