Talking with sellers can be difficult. The hardest part is presenting your offer. Here are 8 common phrases a seller will use to delay accepting your offer (and what to do about it).
Presenting the Offer
Lets discuss presenting the offer first. Most people believe the hardest part of wholesaling is the initial conversation with sellers. This may be the case for some, but for most, the hardest part is presenting your offer. I tell people that if you’re not embarrassed to give the offer, you’re more than likely being too generous and offering too much. As investors, you have to buy right or everything else will fail.
Presenting the offer is challenging because all the rapport you’ve built with the seller before that moment will be at risk. People take offense to low offers, and they take it personal. They may assume you think they’re ignorant. I’ve seen rapport get crushed in the offer exchange. When you thought you were in the sellers good graces you can quickly become the villain.
When presenting your offer, you will need a few things:
- How to justify your number (comparable properties that sold)
- Market analysis
- Rehab justification
- Transaction expense (holding and closing fees and taxes)
If you have these things, you should be able to close the deal. However, a seller will work to either negotiate, delay, or reject your offer.
Here Are Key Phrases Sellers Will Use & How You Can Pivot & Solidify Your Argument
1. “How do I know this is not a scam?”
You have to create credibility:
“This is a great question, Mr. Seller. I understand there’s no reason why you should trust me. However, I am going to introduce you to the escrow officer that will be handling the file, and she can provide validity and credibility of my professionalism.”
Of course, this can only be done if you have closed deals with the escrow officer. Also, if you’re a licensed agent, you can inform them you have to do everything according to the department of real estate standards. Finally, if you’re a business, get registered with the BBB. This is basically a stamp of approval.
What to do if this is your first deal? This is more challenging, but it’s doable. If this is your first deal, you may have a buyer who you will be sending the deal to. Use their credibility as a source, especially if you’re working with a known buyer. You will have to get permission first, of course.
2 & 3. “Why should I sell to you and not another investor?” or “I have other investors that are interested.”
In these instances, the seller is questioning your performance. You can use the same strategy as above for credibility or:
“Mrs. Seller, this is my career path, and I know I will be able to provide the service and the result you’re looking for. You need to sell the property, and I am highly interested in purchasing it. Looks like this is a match made in heaven. Let me help solve your problem.”
4 & 5. “Your offer price is too low” or “I can’t sell at that price.”
“Mr. Seller, why do you believe my price is too low? Compared with what? I’ve done a market analysis on your home and the area, and the price that I am offering you—without any closing fees, transaction fees, and as is—is very comparable to the neighborhood. Look at this CMA and I’m sure you will agree.”
Being prepared helps rebut their pricing concerns.
6 & 7. “I need to sleep on it” or “I need to talk it over with the wife (or other family member)”
“Mr. Seller, I’m sure your family will want you to do the right thing, and I’ve shown you the benefits of how this will help you and your family move past this issue. Wouldn’t it be great to tell your wife (family) that this is done and we can move on with our lives? Mr. Seller, it’s a matter of time, and the best time is now.”
8. “I’m not ready yet.”
“Mrs. Seller, sure you are. This is the reason why we are discussing it. You look like the type of person who handles business. I can identify with that, and this is the reason we’re here now—because you want to handle business. You understand the value of a person’s time, and how limited it is. So I know you’re not interested in wasting time. Here’s my pen. Lets use this time wisely.
These are a few of the techniques my team and I use to close deals. We’ve found it successful, so I decided to share it with you. Sellers can be procrastinators, and they often need someone to show them the light at the end of the tunnel. Use these techniques to close more deals.
If you have other strategies or have heard other excuses from sellers, please share.
Let’s discuss them in the comment section below!