The other day I was meeting with a seller in Woodbridge, VA about a rental property, I was going to do a lease option on. The seller was very motivated because the property had been vacant for awhile and he was tired of bleeding cash.
Previously, I had talked to the seller on the phone several times. I had made my offer over the phone, it was accepted, and I was sitting at his kitchen table that day to sign all of the paperwork.
Everything was going as planned…
I was explaining all of the paperwork to him, he was nodding his head and when it came time to sign everything, he hesitated.
He then looked at me and said “I think I want a few more days to think about selling my place to you.” This is not the first time this has happened to me, but every time it does, it’s like a punch in the stomach.
However, once you hear those fateful words, what you do in the next second determines your fate and whether or not you close the deal. The worst thing you can do is to immediately pressure the seller and try to get him to sign the documents. This will scare him away and you will never close the deal.
So what did I do with this seller and what do I do whenever this happens?
Well, when I’m about to close a deal and a seller tells me they might not want to do it, I always remain calm. (Even though in my head I’m flipping out and thinking bad words.)
Next, I use the following script on the seller: “Mr. Seller, that’s no problem at all. I know this is a big decision. Typically, when someone wants more time I can do two things for you. First, I can leave now and then you can call me if you ever want to sell your house, and if not, I will never bother you again. Or second, we can sign the agreement tonight and I will write a special clause that says you have the next 5 days to cancel the agreement if for any reason you are not comfortable.”
On the deal I was at, the seller did not want to do the clause, he just wanted more time to think about it. I thanked him for his time and told him to call me with any questions.
Two days later he called me…
I went back to the house, we signed the paperwork and I closed the lease option deal. All because I remained calm, stayed professional and did not try to pressure the seller at all into selling his house.
I know this is not easy to do, and the words “give me more time, I need to think about this” are devastating words to hear as an investor. But if you follow the above advice you’ll close more deals this year and not scare people away.
Photo: notsogoodphotography
Article Author:
Jason HansonJason has written 112 articles for us.
Visit Jason's Website: http://www.PrimoCoach.com
Jason R. Hanson is the founder of National Real Estate Investor Month and the author of “How to Build a Real Estate Empire”. Jason specializes in purchasing properties “subject-to” and has purchased millions of dollars worth of property using none of his own cash or credit.
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True as true can be. It’s investors like you, remaining calm in the eye of the storm, who succeed where others fail. Better yet, unlike them, you know exactly why.
BawldGuy Talking´s last blog ..Munchin’ The Numbers — Um, Buy Gold
Makes sense. Common sense really. I would presume a lot of sellers wouldn’t want to make an instant decision with a prospective buyer.
great post Jason! I think it will be very helpful to anyone who reads it
Nick@Subject2.com´s last blog ..Make Me an Investor!
I couldn’t agree with you more. I only deal with buyers because I am on the lending side of the transaction, but remaining calm is one of the best things you can do when something happens during a transaction that is causing stress to your client.
Jason,
I like your calm approach.
Personally, I do not like aggressive sales people.
Having said that, I like your strategy.
I hope that people read your article and take the advice to heart.
Best Regards,
Neil.
Neil Uttamsingh´s last blog ..How I made over $65,000 on my first rental property by doing everything wrong
Jason,
So true about rejection being like a punch in the gut! Whether in real estate or the dance club how you play your cards in the next few moments determines how the night plays out!
- John
That approach makes so much sense. All you have to do is put yourself in the buyer’s shoes and think through what approach by the seller would work and what wouldn’t. Part of what the barrier is to signing for this type of client is trust.. so putting on the hard sell just confirms his mistrust. Plus, I think that hard sell sales people look desperate, not confident. Quite, calm confidence is what closes deals.
Don McAlpine´s last blog ..Medical Transcriptionist Training – My Personal Story