Free Question Friday- Dealing with Motivated Sellers
March 14, 2008
The last two weeks have been insane!
My father in law (Tony) almost past away last week due to complications at the hospital. Last Tuesday he arrived at the ER sick from the flu thinking they’d give him some meds and send him on his way, but instead they admit him into the Intensive Care Unit and literally all heck breaks loose.
They tell the family he’s in serious condition (keep in mind he’s 50 years old with nothing wrong and strong as an ox) and they need to do exploratory surgery. They open him up for about 15 minutes and said - everything looks good - let’s close him back up.
48 hours later - Tony is on a vent, a feeding tube and has packed on some major weight from the fluids and yet the hospital still doesn’t have a clue what’s wrong with him. One thing that was wrong was the feeding tube- his stomach wasn’t processing the food, so it was overflowing into his lungs.
Anyway, he was stable enough to move, so the family moved him to another hospital and he’s looking better every day. But the hospital made some major blunders.
Moving on to this week’s Free Question:
It has to do with negotiating with your seller. Here’s the question:
What do you say to a seller?
How do you negotiate a deal properly so you don’t leave any
unecessary money on the table?
First off, in most cases the sellers are calling me. I rarely approach sellers unless I really want the deal. My marketing is cranked up to receive phone calls and website submissions of homeowners that need to sell and sell fast.
One of the most important factors is quickly identifying the motivated seller.
This comes from simply pre-qualifying them over the phone or through your form on your website. Personally, I’m not going to set on the phone for 30 minutes listen to someone try to sell me their house.
While on the phone - get to the numbers!
Build the necessary rapport in person, but let them know you need the information to see if it meets your criteria.
So how do you do that?
It sounds silly - but you ask.
Very early in the conversation-
I’ll ask the following - Why are your selling?
If they don’t give me a hint of motivation, then I end the conversation and move on.
Hints of motivation:
When the seller responds with something like this:
- I’m behind on my payments
- I’m facing foreclosure next month
- My mom died and left the house to me
- We’re getting a divorce
- I’m relocation and can’t afford 2 house payments
Get my drift?
Next, I’ll ask “what do you Need out of the property?”
Notice, I say the word “need”. I don’t ask what are the asking for the property, I ask what is it they need to make the situation a win-win.
Then, I follow up with - are you trying to pay off a mortgage?
Then I ask - how much?
Do you have any idea what the property is worth?
In less than 2 minute - I’ve asked 3 - 4 question to see if the deal is worth pursuing.
If not, I end the conversation by telling them - “your house doesn’t fit my criteria- thanks for calling.”
Time is the one asset that you can’t replace - so be sure to get the information you need on the phone and prequalify the seller.
Next, if the seller is not trying to pay off a mortgage - “I’ll ask is that the best you can do?”
You’ll be surprised at how instantly the price starts dropping…
Gotta go for now..
Derek
Derek, I would like to thank you for your tips and motivational words that you share from your heart and experience. My prayers are with your father and I ask for Gods blessings upon his body and increased health. I have a question concerning using the internet to get leads for motivated sellers and buyers. Im not sure about how to go about setting something like that up. What is your advice on creating a motivated seller and buyer squeeze page and website to increase leads.
Thank you in advance and God Bless you and your Family
Good pointers on what effective questions to ask. I’ve been with you in person when someone has called and you’ve asked these questions very naturally, so the caller answered with no problem.
Hi,
My prayers for your father this Sunday at church.
I have put door hangers, sent letters, used Realtrek to get a better search, look up the court records of whom coming up for getting their house sold on the Court house steps. My point is though I have had a couple of hits non has became of nothing. My money is getting real tight in the household. Gas is going up and the tenants that I do have in the few homes I have left are getting it harder than me because they have even less.
I am a title closing agent & notary on the side. I still seeing a lot of underhanding closing. Re-finance for more than a property worth. This why the US is in the mess it in now. In my area (Northwest IN) it a housing mess. There a property emptly a least one one on a block average.
I lost about 50 properties myself and had to file chapter 7. Just before the laws change and I knew what was going to happen right before it did. Property taxes is killing people one way and they’re not handing around renting. They are leaving the region.
I’m just lost of words how to get people to make a decision till the day before being kick out. I can’t do much in 24 hours. Maybe U can but I can’t. Just what can I do. If anything.
Thanks for all your thoughts and the emails I’ve received.
This is my father-in-law just to be clear.
Anyway, he is doing better. He’s off the vent and talking now. He’ll be in the ICU unit for a few more days, but everything is looking good and looks like he’ll be back to normal in a few weeks.
Again, thanks for all your prayers, thoughts, and kind words
Derek