Listen Closely For Seller Motivation
By JD Esajian on December 11, 2013
One of the things you will realize, the longer you are in the business, is that deals do not just fall into your lap. There is often a process in obtaining leads and closing deals that can take several several months. Many sellers are not ready to sign a contract after sitting with you for 30 minutes. Those investors who are skilled in finding out what the seller is looking to do and what time-frame they have in mind will find themselves closing deals faster. Accordingly, finding a seller’s motivation will move the process along faster and smoother.
In the real estate industry, it is important to listen more than you talk. When dealing with sellers, this is exactly the approach you should take. Listen to what they have to say and ditch the script. You should have some questions prepared so you can find out what you need to know, but you have to listen to the answers. If you ask the right questions, you will find out why, when, how and for how much the seller wants to sell. At this point, you can offer advice and suggestions based on your knowledge of the market. However, if they don’t want to immediately move forward, don’t throw the lead aside.
Once you discover their motivation, you will have an idea of which way the deal will go. If they want to sell, but for an amount that is much higher than you were willing to pay, suggest that they either list on their own or with a realtor. If you give a realtor a listing, you can expect them to put you on the top of their list the next time they come across a potential deal. If you do this, you are still getting something for your time with the homeowner. A relationship like this may be much more valuable than the deal at hand.
If you pass the deal along or the seller decides to sell on their own, this does not mean you should forget about them. Many deals are closed based on how you follow up. Contact the seller 30-45 days after your initial meeting just to see how things are going. If it is listed with a realtor, you can check on the activity and see where the interest is based on where they have the property listed. What they may have wanted to get for the property 45 days ago may not be the same now. They may have seen that you were right on the price valuation and now just want to get rid of the property. If you just passed the lead off and never talked to them again, you would have never have known that and missed out on an opportunity.
The sooner you can get to the bottom of what the seller wants out of the transaction, the better off you will be. You will not waste months working on a deal, only to find that the seller didn’t really want to sell or wanted to sell for a much higher amount. Listen to what they have to say and if the deal doesn’t seem right initially, follow up with them down the road. Seller motivation holds the key for which way the deal will go. All you have to do is listen.