I have been talking to many sellers that call from yellow letter or bandit signs the last few months. The problem is that I am not doing a good job of finding out how motivated they are. When I do meet them they are always wanting retail price for their abandoned property. My questions is should I use a better script or should I just talk to them and figure out if they are willing to sell at a discount for a cash offer? What works best for you guys?
Ask them from their point of view why they think they will sell a house that needs rehab at a retail price. Ask them how they priced it, how they came to that conclusion, etc. Ask them how long they are willing to wait, when you can buy right now. Tell them they could be building equity in their next house rather than dealing with a dud. Ask them why they are paying bills on a distressed home when they are not building any equity.
Ask a lot of convincing questions from their point of view.
@Greg Carr That is some good stuff. I have to start looking at things from their perspective and make a deal.
Thank you sir
Simple negotiating skills. Always try to find a "win-win" when negotiating with anybody, and always try to appeal to them.
Best book ever: How to Win Friends and Influence People. Doesn't matter what you are doing, it will help a lot.
You know what I have that book in my car right now and I have to read it again. @Greg Carr
A while back @Michael Quarles shared this "cold calling" call script on BiggerPockets, and even tho it's for cold calling, I think the questions are excellent. Here it is:
Hi, my name is __________with ____________... We are looking for 3 and 4 bedroom homes in your neighborhood...And I was wondering...who do you know that is looking to move out of your area? (No one) Fantastic!
Thank you for taking the time to think about it.. By the way
1.Have you thought about selling? (Never) Terrific!
2.If you were to sell...where would you go next? (Back to LA) That's Exciting!
3.And when would that be? (3 months) Fantastic!
If they do not want to sell say thank you and hang up
If they want to sell
4.Are you planning on selling this house? (Yes) That's exciting!
5.Do you have your next home picked out already? (You do) Ouch!
6.What do you think it will take to get the houses sold? (The right offer) Really!
7.I buy houses... just like yours... all of the time, and I have found that if the seller is willing... we can come up with a solution that works best for both of us, is that okay with you? (Yes) outstanding
8.Sometimes the only way we can buy the houses we look at is to take over the debt and pay you your equity, That means the loan will stay in your name until its sold, assumed or paid off.
9.Sometimes even buy the house under a lease option... Is that a problem? ? Yes ? No
10.So if we can pay you your equity, guarantee and make your payments and be responsible for all repairs you will sell the home to us, right? ? Yes ? No
11.What time today would be better for me to come out and buy your house ___________ or ______________? (___) Terrific
12.Before I come out... there are just a few more questions... I need to ask about your house, is that okay? (It is) outstanding
13.Is the home ? Vacant or ? Occupied? Occupant Name?
14. _____ Bedrooms ______ Baths
15.How many Square Feet? ________________
16.Size of the Garage? ____________________
17.How did you happen to own the home?
18.What Kind of repairs does it need?
19.? Carpet ? Paint ? Roof ? Cabinets ? Electrical ? Plumbing ? Plaster ? Sheet Rock
? Cooler ? Heater ? Air Conditioner ?Window ? Landscaping ? Clean-up ? ______
20.What do you think the repair cost will be?____________
21.What are you asking for the house? __________________
22.Is that ? Fixed-Up or ? 'As Is'
23.How did you come up with that Price?
24.How soon would you like to be sold? ____Days _________Date
25.Is there a Mortgage on the house? ? Yes ? No
26.What is/are the balance? 1st ________ 2nd ________3rd________
27.Are you in Foreclosure? ? Yes ? No ? Notice of Default or ? Trustee Sale...Sale Date _______ Arrearage Amount __________
28.One last thing.... When I come out... it is important...that all of the decision makers be there.... so I can come to an agreement to buy your house... Will all of the decision makers be there for the appointment? (If all of them are not there don't go)
29.Well, ____________ I look forward in meeting you at __________...
And here is the tracking form...
Not to start another major debate about script vs no-script, I suggest you at least use a 'Lead Sheet' that organizes the information that you collect over the phone.
Your most powerful skill is not in power talking but power listening. Listen for telltale signs of distress. Ask people open-ended questions that may lead to emotional responses.
Example: "After selling, what are your plans? Going to stay in the neighborhood or have another plan in mind?"
This will cause them to take a moment and respond with some thought. If they talk about relocating out of state, help them visualize what that we be like, with your help. If they say they're staying local, why would they even consider selling?
If they're coy and guarded, then you better find out why they're calling in the first place. If you get too many calls, your marketing is too broad and must be filtered to only attract motivated sellers and REPELL the others. You can do that with a system of hoops and hurdles that self selects and causes the tire-biters to drop out.
When I go do the walkthrough on the house I ask them pointed questions about the condition of the property.
How old is this stove ? Have you seen the new ones in all the new homes that has.....
How old is this dishwasher ? Have you seen the new ones that ......
How old is this laminate ? Have you seen this new pattern......
How old is this vanity ? .....
You get the picture ?
If you are doing this over the phone then ask
When was the last time that ___________ was updated ?
Then when I show them the comps I show them ALL the things that the sold ones had that their house don't have. Essentially building a case before you mention the price.
Finally do an inspection and show them all that is wrong with the home with an actual report.
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