If you know even a little about me, you know that I do not like talking to sellers. It’s just not my thing. I learned how to do it to start my business, but I don’t like it.
Do you feel the same?
I’ve realized that part of the reason people don’t like this aspect of investing is because sellers often have objections and having to provide adequate, real answers can trip us up. :-/
A student of mine had been struggling with this for a good 2 years. He finally had a breakthrough. Finally began to have progress. How? He became more aggressive when talking with sellers on the phone. That does NOT mean he was a jerk or rude or negative. That’s not what he did…
He flipped his mindset. He realized he was sounding like the desperate buyer. No good, folks. To get out of that approach, he decided he wasn’t going to concern himself with the outcome… he stopped chasing the sellers.
And suddenly, they began saying “Yes” to him.
When a seller has objections, don’t go into panic mode.
Simply follow this quick and easy 3-step formula:
- Call the seller by their name.
- Agree with them. (Jim, that’s a great question.)
- Ask them why that’s a concern they have.
Know this: Whoever asks the questions in a negotiation stays in control.
You want to be the one asking the questions. Don’t go into sales mode, spewing info all over the seller and overwhelming them. Turn the tables and ask them questions, because their answers will reveal their motivation, why they’re selling and what their problems are.
Care more about their story than their house.
When they ask you another question, hit ‘em back with: “Jim, if I can show you a way that I can take care of that for you, what would you want to do then?”
See what I did there, flipping the question back on to them?
Answer their objections with questions. It works.
Also, know that it’s okay to not have all the answers. It’s okay to say, “I’m not sure, Jim, I’ll talk to my business partner about that. Why did you ask about that?” or “I’m not sure, Jim, if my business partner can get that info, is there anything preventing you from doing business with us today?”
One last tip…
If the seller is playing hardball, and you can’t come to an agreement, drop this on them: “So, if I can’t give you that price, are you saying we’re done here?”
The finality of that question is powerful.
And of course, since you’re not the desperate buyer, you can simply walk away. And you should in certain circumstances. There other deals out there. Move on.
Bottom line: Ask lots of questions. That’s the solution to seller objections.