How to overcome this common objection?

Question

Cold calling some multifamily owners, I begin to face the "I've been lowballed before" objection a lot. Tips to overcome that?

Evan Polaski · Answer

@Daniel Lozowy convincing someone that may not want to sell to sell is a fairly hard proposition and often means you need to overpay to get their attention.

But the recommendations provided are strong.  You are laying the ground work now for a deal in the future.  One thing I would add is to ask, not only to be added to their contacts (and then text them your vcard so they don't have to type a bunch of things in), but also ask if they would mind if you contacted them again in 6-12 months to gauge their interest.

Also, if you do manage to get more info, don't try to convince them why your offer "isn't a lowball".  Some owners have huge numbers in their minds, and trying to convince them they are wrong almost never works.  You simply respectfully let them know that at their price, you cannot make the numbers work, and wish them the best.

Dan H. · Answer

I would indicate that you strive to make any deal beneficial to both parties and that you are not looking to take advantage of anyone.  Then behave as described.  If the negotiation shows that it cannot be of benefit to the buyer and the seller, then maybe the purchase is not meant to be.  Leave on positive terms, maybe indicating to have them contact you if they decide they want to sell.  Ask them to put your contact info into the phone; offer to enter it for them.  In the notes place keywords like "We buy real estate/houses".  Maybe in the future they will decide it is time to sell and contact you first.

Some people have no desire to sell.  Realize to buy from these people likely will not result in favorable terms to you.  You want to find sellers interested in selling and then you want to sell them on the benefits of selling.

Good luck

Jonathan Greene · Answer

I would always ask first how they define a lowball and then follow up with the fact that most investors are looking for lowball deals so they make lowball offers, but you are looking for win-win deals where both parties get what they want. You may be able to offer more than a lowball, but you will want to confirm the numbers even more. What a lot of these owners describe as lowballs are people calling and giving them a sight-unseen offer over the phone, which is about as good as the old telephone wires it may have traveled on to reach the landline of the owner. I always say that you can get a bunch of offers over the phone, but they will never be accurate. I want you to show me around, I want to see the good and the bad, and I want to make you a fair offer where we both walk away feeling good.

Greg Dickerson · Answer

Ask them what they mean by that and listen. Then ask them follow up questions based on what they tell you and dig deep to find out why they are getting lowball offers as they may be justified or they may not.

David Masciangelo · Answer

@Daniel Lozowy

Say I know, I've been high balled a few times and chuckle.  Be comfortable, be you... It's a conversation, not a sales pitch!  You're there to help who you can, when you can.  If it's a dud move on to the next 10 and ask him if you can follow up in about 2 months.  If they entertain the joke tell them just kidding and say listen, the only way to know if I can make this a win,win is by discussing likely solutions .  If I can, great we invested wisely in a good conversation.  If I can't, no harm no foul but well always lose out if we don't try, right?  Remember, you're trying to win the phone call, not the deal just yet and if you try and shoot right to the pitch you've already lost the deal in today's market.  Homeowner skepticism will win Everytime if they don't feel you are genuine.  They get enough of the cold call blaster calls everyday.  Good luck.

Daniel Lozowy · Answer

@Alex Olson @Greg Dickerson @Dan Heuschele thank you ! Investors seem to get a bad rep in my area, it's really competitive. Is it like that for you too?

Alex Olson · Answer

@Dan Heuschele I would tell them you are not trying to low ball them. I would tell them you want to help them. Ask them what it is worth to them. Then, tell them what it is worth.

How to overcome this common objection?

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